Q:
I'm planning to sell my house in about a year's time and I know that
some cosmetic improvements could help me get some more money. How much
can I really expect to get against my investment? When do improvements
like this begin to cost me more than they're worth?
A:
My best advice is to contact a real estate professional to consult with
you. A certified appraiser familiar with your area may be able to help
you make decisions.
Typically, if a home is newer (and particularly if new construction
competes with the homesale), a home will need to be generally neutral
without personalized decorating. A fresh coat of paint and professionally
cleaning the carpeting will help the home show better. Painting dark
brown paneling white can lighten up a room. Replacing carpeting in the
"main" rooms of the home, particularly the rooms that are seen when
one first enters the home or rooms where the family may spend the most
time.
Dollar for dollar, it is difficult to truly gauge what the improvement
will recapture in the resale market. If you have an older home, updating
kitchens and baths typically pay for themselves -- as long as you don't
go overboard and make an over-improvement to the property.
Remember Supply & Demand... In strong markets with low supply
of inventory and high demand of buyers looking to purchase in your area,
many home deficiencies may be overlooked. If the market is softer with
many homes to choose from and fewer buyers active, improvements may
be necessary to find a buyer.
