Expert Advice on Updating Your Home for Sale
Downsizing? Thinking of selling your home? Experts offer advice on home updates to maximize your return at sale. Most recommend that sellers not undertake major remodeling as a means to improve sale price as remodeling costs are unlikely to be recovered at sale. However, major remodeling is not the same as repair and sellers should be aware that worn and broken furnishings have a strong negative impact on buyers. Fortunately, many repair costs can be recovered at sale and some updates may help you move your house more quickly, as well.
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- Before you begin, know that the "secret to successful pre-sale home remodeling is to keep up with the Jones’, but never surpass them. Whether you want to make more money than you spend, or just recoup your remodeling expenses when you sell your home, know what’s standard in the neighborhood." Also, whatever you undertake, keep it "neutral, clean, and classic" - now isn't the time to spring for trendy colors!
- Sellers are likely to recoup most or all of the costs for minor bathroom improvements, such as an updated sink or toilet. By replacing a cabinet sink with pedestal version or replacing the old tub with a nice shower, bathrooms look updated and appealing to buyers. Remodeling Magazine's 2005 data show the average cost recovered for minor bathroom improvements was 102.2 percent.
- Buyers form first impressions when they drive up to the home and worn or drab siding can be a deterrent, even when interiors are attractive. Siding replacement can help move your home and the likelihood of recovering expenses is high. Remodeling lists the average recovered costs for vinyl siding replacement at 95.5 percent and the average recovered costs for fiber cement siding at 103.6 percent.
- A minor kitchen update is a good bet - if you know when to stop. "Reface the cabinets with new doors and drawers, put in new appliances, update with resilient flooring and laminate countertops and finish with neutral wall paint" but, again, don't spring for amenities that surpasses your neighborhood's standards. Average recovered expenses for minor kitchen updates: 98.5 percent.
- If square footage is an issue, consider converting your attic space to a bedroom with a small bathroom. "The payoff for remodeling this existing space is higher than the payback for adding new space. Putting on even a modestly priced master suite addition costs typically costs about twice as much as finishing an attic and the return (82.4%) is lower." Average recovered expenses for attic conversion: 93.5 percent.
Four projects not likely to pay off include remodeling to up-scaled kitchens, home offices, and master bedrooms, and family room additions. Budget tight? Consider snazzy minor repairs such as painting, removing carpet from hardwood flooring, spiffing up the yard, or replacing old light fixtures. A word of caution: Before you break out the hammer, check the data for your area as recovered expenses are national averages.
