Let’s Talk Real Estate – March 2020
Getting top dollar for your home is everyone’s goal. Sometimes the solution is simply staging your home and completing some minor repairs. There are some improvements that increase the value of a home and some just increase its salability. Most sellers are prepared to get their home staged to sell; but, in some cases, they can dramatically increase the value of their home by replacing or remodeling. Here is a look at how to get the top dollar for your home by staging, replacing or remodeling.
Stage—The key to create salability is to create a clean, decluttered, and depersonalized home. Curb appeal, or more importantly, web appeal, while viewing online is critical. When a buyer approaches the home or sees the first photo online, they should be visually attracted to the home. Groomed front gardens, fresh bark, fresh flowers, power-washed siding, and a clean or newly- painted front door all increase curb appeal. Once inside, the same theory applies—clean and decluttered surfaces, free of personaal photos, is the key. You may need new carpet or fresh paint, but in all cases, you know you’re going to move, so start packing and decluttering. When a buyer feels comfortable enough to sit down on your living room couch, they have begun the process of envisioning the home as theirs.
Replace or Remodel—Going beyond staging can yield a higher home value, but jumping into a home remodeling project isn’t for the faint of heart, especially since you’ll want to make sure you can recoup a good part of your investment when it comes time to sell. To help you pinpoint the right projects, Remodeling Magazine has just released its annual Cost vs. Value report highlighting how much various projects cost, and their corresponding return on investment when you sell the home.
Review the chart below and you’ll notice a pattern. With the exception of a minor kitchen remodel, the items with the highest cost recouped all center around enhancing the curb appeal. First impressions are important. The replacements that offer the greatest payback to sellers are the ones that are most obvious to buyers when they first view the house in person or online. You may choose to do a major remodel or addition to provide you with a few years of enjoyment while still offering decent payback down the road, like a kitchen remodel; but, be careful, you may increase the salability of the home but you may not recoup your investment.
Another way of drastically increasing the value of your home is by adding square feet; but, unless you can do it cheaply, you’re not likely to get back your full cost. New construction cost per square foot is high, and in many cases, higher than the resell price per square foot.
If you do decide to remodel your home before selling, a few words of advice—make sure you complete all projects before putting your house on the market. There is nothing that turns buyers off faster than a house filled with the owner’s unfinished remodeling projects.
So, whether you decide to Stage, Replace or Remodel, consult with your Realtor® on projects that will get you top dollar and allow you to recoup the greatest percentage of your investment. If you’re handy, doing the projects yourself can help in recouping the remodeling cost.
The number of homes for sale in Jackson County is down 25% from the same time last year. Demand for homes priced under $400,000 is very high, and supply is very low, so it’s a seller market. If you have been thinking of selling your home, now may be time!
