September 25th, 2017

What is the least I can do (and spend) to my home and NET the most profit?

Sometimes there is no question whether you have to give a room a makeover or not.  When selling your home you want an “Ohh nice! “ when a Buyer pulls up to your home and you ONLY want positive thoughts from them as they view your entire home.  Some NEGATIVE show stoppers include:

•  this Bathroom
• visible Front home view defects
• a fogged Window
• a stained Carpet
• outdated , Kitchen, Bath, Appliances
• any visible Rot
• any hint of Mold (visual or any smell)

As a home Seller, your biggest enemy is the Buyers’ perception of what some things will cost them to do.  Buyers, and their agents, will always guess high if you leave them work to do.  The Buyers’ guess on the Roof will be 160% of actual.  So if you are lucky enough to get an offer with a glaring defect, count on the buyer asking for $10,000 for a $6,000 actual roof. This is why it does make good sense to take care of your homes’ problems…it’s cheaper.
Always prioritize by this FIRST:

• Home Systems
• Appearance

Take inventory of the big things first like outside “front” appearance, siding and shutters, windows, HVAC, Roof and Water systems.  Your repairs here will cost you less now than “post” home inspection.  Home repairs are one thing and upgrades and additions are another. Now, if you need to renovate or makeover, the following will show where you get the biggest bang for your buck.

What is the difference between a Makeover vs. a Renovation in dollars?   From Homewyse.com 2017
 

Renovations that bring the greatest
percentage return on investment:

• · Entry door replacement
• · Deck addition (wood)
• · Attic bedroom
• · Garage door replacement
• · New Roof if over 16+ years old
• · Minor kitchen remodel
• · Replacing siding
• · Replacing a garage door
• · Completing a minor kitchen remodel
• · Completing a minor bath remodel

Here is how Homewyse.com calculates a Kitchen Remodel

$16-27,000 is a lot of money!
So as the Seller, you really have to take inventory of what really needs to be done before you start.  That means what keeps a Buyer from thinking Negative as they walk through your home.  Again, you are doing things to create NICE, I LIKE THIS, OH HONEY, and WOW.   That’s what brings you the contract.
 

Renovations that yield the smallest return from US News:

• · Home office remodel: 48.9 percent
• · Sun-room addition: 51.7 percent
  
• · Bathroom addition: 60.1 percent
• · Backup power generation: 67.5 percent
• · Master suite addition: 67.5 percent

 

Here is how Homewyse.com calculates a Kitchen Makeover

The following is a comprehensive list of projects and their associated cost vs. value according to the Remodeling 2017 Cost vs. Value Report (www.costvsvalue.com).  Remember that every home, neighborhood, and need is different so VIEW your home as a BUYER.  Also call me to show you the competition when you have the time to view.  As you begin to get things ready for sale you may not have the time to look.

according to the Remodeling 2017 Cost vs. Value Report (www.costvsvalue.com)

If your renovating a well lived in home and then selling, the returns are not so great.  Some agents will “pitch the Renovate to get highest dollar” and pay the contractors out of the proceeds of your sale at closing.  That is, the contractor puts a lien on your home in order to be paid for your renovations (before you get the net proceeds) at closing.  To me, if your not getting all of your money back there is little benefit in not paying for the work while it's being done.   There’s no right or wrong, just the best outcome for the least money.

Here's a list you can follow to have your home show the best and get you the most for your sale.  Know your costs and make a plan.

1. New front door if needed and landscape walk to front door.

2. Make the patio or deck look like a place you would want to be.

3. Paint over old colors and paint in rooms where high use and age shows.

4. Remove / Replace warped or rotted boards that trim windows and roof line.   Buyers should see clean lines and color transitions on the exterior of the home.

5. In areas where lamps have to be used consider installing recessed lights.  This is especially important in shared spaces like the kitchen, living and family rooms.

6. Change and/or clean switch and  receptacle plates.

7. Reface older Kitchen cabinet doors or have them professionally painted.

8. Replace Formica counter tops with Stone or Stone composite.

9. Replace/Refinish worn flooring in key, high use, rooms (Family, Living, and Dining Rooms)

10.   Reduce Furniture to 30-40% of floor space in a room.  Have only 1-3 focal point items (candle cages in photo, vases, flower arrangements, pictures) per wall.  In general less is better.

I'd be glad to help you get ready to sell.   Lets meet and consider your homes strengths and find the most economical way to eliminate the weaknesses.

Dennis Bell - Realtor, Sr. Moving Consultant
Samson Properties
14526 Lee Road, Suite 100, Chantilly, VA 20151
JK Moving Services

Contact me Today!