Remodeling With an Eye on Resale

"Potential home buyers spook easily – loud noises, black cats, and unfinished projects can have them running for their car faster than you can say "Seller pays closing."

It’s not news that the current housing market is a tad soft.  There are more homes and fewer buyers, which means lower prices - good news if you are buying… not so much if you are planning to sell.  But just because the market is soft does not mean there aren't buyers willing to pay a fair price for your domicile.  It simply means that if you are looking to sell your house in this cut-throat real estate market, it's more important than ever that your home stands out.   

As you look for ways to distinguish your residence from that of “the neighbor’s” a good place to start is the list of planned upgrades that has been slowly but steadily growing since you moved in.  These upgraded amenities can have big payoffs both in dollars and time on the market, but be careful, poorly executed or unnecessary renovations can have highly unfavorable results.  


Here are some suggestions to keep in mind when preparing to remodel your home with the goal of getting potential buyers in the door (and offers on the table). 

Think like a “flipper”
Ever notice how the cars on a used car lot are always clean, with no visible defects and often sporting a new paint job?  Even the tires have been shined!  There's a reason for that.  The same principles that work so well selling second-hand cars apply to selling your home - a clean, bright house, emptied of clutter and with newly painted walls is practically the real estate equivalent of "that new car smell."  So don't underestimate the value a couple cans of paint and a few hours straightening up can add to your home's sale price.


As much as we criticize “house flippers” for swooping in to buy houses cheap, doing a quick fix, and flipping the domicile, the fact of the matter is, “flippers” (yes they are still out there) really do get houses sold.  Follow their successful models.  That is, distance yourself emotionally from the house and look at it from a buyer's point of view – try not only seeing it as an investment but imagine walking through the front door for the first time looking to possibly purchase.    

Obviously this is “easier said than done.”  Separating ourselves emotionally from our home in order to objectively critique it is not an easy proposition, which is one of the reasons there is nearly 10 months of housing inventory on the market.  This is where the services of a professional remodel contractor and experienced real estate agent can prove invaluable.  These seasoned pros can provide you with helpful insights to your property and assist you to see things from a “buyer’s eye view.”  



Curb Appeal
Many buyers determine whether or not a house is worth a second look or more importantly a walk through based on what they see from the street.  If you can’t get them out of their car, there likely won’t be a sale. 

Landscaping is an inexpensive way to gain huge points with buyers.  Some new shrubs and flowers set in freshly laid bark can make a huge impact. Keep the yard neatly trimmed, prune those uncomely bushes and trees in the front yard and make sure the debris and leaves are cleaned.  It's may be worth your time to contact a local landscaper or remodeling contractor to tackle some of the problems that are too big for you or to finish projects you’ve been putting off.

Remember, potential home buyers spook easily – loud noises, black cats, and unfinished projects can have them running for their car faster than you can say “seller pays closing.”   Those "little" problems with your home you  affectionately refer to as "quirks" may not be so easily overlooked by someone thinking of purchasing.  Potential home buyers quickly fixate on exterior issues - the leaning mailbox and broken steps that no longer seem like such a big deal to you, could be a deal-breaker for a potential buyer.  Hanging gutters and broken shingles could mean scratching you off their list of possibilities.   Taking care of these items could save you thousands on the negotiantions table.  And while your at it, slap a new coat of paint on the front door, or better yet replace it with a more attractive one.  Replacing an entry door is a fairly simple project that can add as much as 130% of the money you paid to the selling price.  Making your entry way as inviting as possible is practically money in the pocket.  As always, if the project seems overwhelming don’t be afraid to call in a professional who can help you repair these items and offer suggestions for other areas of concern you may have overlooked 



Forget the "Wishlist"
When you’ve been bit by the remodel bug it’s easy to fall victim to the belief that the laundry list of upgrades you’ve wanted to do for years will automatically equate to higher profits.  Unfortunately this is often not the case.  You rarely get everything you put into a renovation in dollars and cents, and while some of the value is returned through intangibles (ie selling a house faster) often these upgrades are for your own personal benefit.  The upgrades you think are so vital may have little to no value for the new owners.  So, forget your own wish-list and look at the house from a buyer’s point of view.  When in doubt, apply the adage coined by famed architect Mies Van der Rohe "Less is more."  In other words, if it seems too complicated or too much it probably is.  


Fix it
There are times when it pays to bring in the “big guns.”  Some homes have a major problem that will keep buyers away in droves. The lopsided and broken front door with blistered paint is a major problem.  If there’s no dining room, that’s a major problem. No garage door opener, you guessed it. Fortunately there are several larger upgrades that can not only help move your house faster but will give you a fairly good Return On Investment (ROI). 

REMODELING magazine recently published their annual Cost vs. Value Report.  The report considers 35 popular remodeling projects with the value those projects retain when it comes time to sell.   Not surprisingly almost every area is down from a few years ago but there are projects that give you a decent ROI and more importantly could mean the difference between a house with a sold sign in the yard and one that sits.

When addressing these larger issues it's best to isolate the single most obvious one and fix it, then continue down the line evaluating each for the value it can bring to the table.  You will often find these issues can be taken care of quickly and fairly inexpensively.  The rest is in the details.