Remodeling and the Real Estate Sales Process


Remodeling or refurbishing a home requires a serious investment of both time and money. For many homeowners, the result is a home with quality appliances, luxury amenities and unusual touches that make it truly their own. But when it comes time to sell, many homeowners find that potential buyers don't fully appreciate the invested time, effort and money. In fact, Remodeling magazine's 2004 Cost vs. Value report, which compares cost-to-construct for a selection of remodeling projects, found that the average recouped at resale was 80.3 percent of the total dollars spent on the remodel. A great-looking property that's priced realistically will always sell faster than one without upgrades. Sellers who've recently remodeled typically tell their agents the price of each fixture. But, as a REALTORŪ, it is my responsibility to educate clients that they will likely not recoup those exact dollars. As hot or cold as the residential real estate market is, the dollar-for-dollar cost of remodeling doesn't sway market value.

 

Preparing a Home to Sell
For homeowners considering a move in the near future, completing several smaller household projects instead of an intensive remodel can work wonders. Following are a few ways to get started, but contact a local REALTORŪ for further information on increasing curb appeal, showing off the home's special features and ultimately increasing resale value. First on the list is to "clean up the mess."  Homeowners should remove all personal objects from prospective buyers' eyes, and pack them away in boxes. This is the toughest part but also the most important. Once trinkets and clutter are packed away, go through the house and closets, and do it again. The prospective buyers need to see themselves living in the home with their personal property. The front door is one of the most significant, simple fixes in a soon-to-be listed home, as it gives the first impression and is usually a good indicator of the rest of the home. Next, invest in a home inspection prior to any more work to identify troubled areas, hire a handyman to touch up simple paint issues and purchase a sellers' home warranty to protect against unforeseen challenges.

 

How to Ensure Remodeling Success
Before remodeling, to ensure a successful outcome, first and foremost have a plan and stick to it. This means:

  • Determine the budget. How much hard cash will be spent?
  • Set a deadline. The last thing homeowners want is for a project to drag on forever. For owners planning to sell in the near future, a place to start is to determine what season is ideal for marketing the home.
  • Identify the rooms. Select how much of the property to remodel and stick to that decision.
  • Think of future buyers. Owners remodel for themselves but also for future buyers. Stay within reason because outrageous upgrades and specific appliances may never claim their true value at resale.

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    Hot Remodeling Trends

    The Personal Retreat
    Homeowners increasingly view their homes as a personal retreat away from the stresses of daily life. This includes meditation or yoga rooms, elaborate exercise rooms with surround sound, window seats for reading and relaxing, and household office space for sorting mail and charging cell phones. The National Association of Home Builders also says many homeowners now create the ultimate spa experience at home with cascading rainfall shower heads, showers and tubs with frameless edges, his and hers spaces, and furnishings such as decorative accents and chaise lounge chairs.

     

    Luxurious Outdoor Living
    Outdoor living spaces are now considered an extension of the living room, rather than a place for a picnic. Outdoor fireplaces are popular, and homeowners place them near custom-designed gardens, patios and decks designed for both relaxing and entertaining, says REALTORŪ Magazine. Plus, creating a luxurious, practical outdoor space is often less expensive than building an addition to the home.

     

    A Home for All Stages
    Home buyers seek functional properties with personality, rather than the cookie-cutter homes of yesteryear. Lighting fixtures and tiling are often used to create a specialized feel, says REALTORŪ Magazine. Functional also means accommodating family members in all stages of life. Baby boomers' current homes may provide shelter as they age, so reinforced tubs and shower enclosures to accommodate grab bars are a sought-after feature. Many homeowners create spaces to host extended family visits or aging parents. Many homeowners are now adding space for another generation.