REMODELING - Where Do Dollars Pay the Most

Kitchen and bath improvements are high on the list of what buyers are willing to pay more for.  Also, additions such as sunrooms are very popular.  Try not to do anything that would be considered extreme or outrageous. Homes with very unique tastes are usually hard to find the right buyer for later.

Repainting in more neutral colors almost always pays off, and adding on a new deck is a good investment as long as the costs are not too unreasonable.

If a remodeling project is done by a professional, it is worth more in the long run.  Ask your neighbours for recommendations of contractors that they've used, or give me a call for my list of people.

A good rule of thumb is to confine your total remodeling expenses to 10% of the home's estimated value.  If you stay within this figure and plan wisely, you'll most likely recoup most of your investment. 

KITCHEN vs BATHROOM:

Not all remodeling jobs are created equal.  If your budget is tight and you want to get the most bang for your buck, the hands down winner is the kitchen.  Statistics show that a minor kitchen

remodel can net you a 94% return on your investment.  A bathroom addition is a close second at 89%.  But even just knowing this is not enough, for there are many factors that determine whether or not a remodeling job will add to the value of your house.

The amount of money you can get when selling your house depends on the prevailing market and property values.  If the real estate market is slow, you're going to get less, no matter how much money you've put into your kitchen.  And if putting in a $20,000 kitchen makes your house significantly more valuable than other homes in the neighbourhood, you won't recoup that value.  In fact, mortgage lenders can refuse to issue a mortgage if the price of the house isn't in line with others in the area.  So do some research before you begin your remodeling job to make sure you will be able to recoup the costs.

Doing a number of small, less expensive projects can have the same effect as doing a large project.  Look at what needs to be done cosmetically to your kitchen before you think about knocking out walls or building an addition.  Maybe you just need some paint, a few windows, and a ceiling fan.

Here are a few tips to help you get the best return on your kitchen remodel:

* Avoid trends and use neutral colours.  You may love a bright red kitchen, but not all potential buyers will feel the same way.  Neutrals appeal to the widest range of people.

* The fastest and cheapest way to change the look of your kitchen is to paint it.  A fresh paint job in a neutral colour can make the whole room look bigger and brighter.

* Hide flaws with textured wallpapers and faux finishes.  Both are fairly easy to do on your own with just a little instruction.

* A kitchen remodel doesn't have to be expensive.  Replace old flooring with laminate or vinyl tiles, or sheet flooring.  Tile can make counter tops look better, and you can paint, stencil, or faux finish a backsplash instead of retiling.

The scent of your home is important to buyers and how a home smells when a potential buyer comes to see it for the first time can make or break the sale.  Imagine for yourself the difference between the scent of fresh cut flowers and the smell of a cat's litter box.

My experience in showing various homes over the years suggests that foul smelling odors do turn off a buyer from purchasing an otherwise perfect home.  Even homes that are very attractive, with great curb appeal, can be overlooked by buyers if they fail the sniff test!

It is important when preparing for a showing of your home to do everything you can to eliminate unpleasant odors.  Common odors to look out for are cigarette or cigar smoke, strong smelling foods, mothballs, pet odors, and the smell of trash left in receptacles.

Take whatever action is necessary to remove all of the above-mentioned odors and replace them with pleasant scents.  Some fresh cut flowers placed strategically throughout the house, or mild potpourri could be used.  One more tip - consider baking cookies or something with a cinnamon fragrance before an open house or showing.  Everyone loves the scent of Mom's home cooking!

SELL YOUR HOME

or

Become a Landlord

Renting your home out may seem like a great alternative to selling at a lower price than expected, but make sure you consider the financial implications.

If the main idea in renting the house is to move now and sell later, be sure to factor in the costs which may occur when reconditioning the rental home for sale as a residence.  Chances are the aggravation of converting your home to a rental will exceed any contribution to costs or profits.

Most importantly, keep in mind that being a landlord can be difficult.  Tenants will demand that repairs and home maintenance be kept up within a timely manner.  Expenses can be quite substantial so be prepared with funds to cover them.  Feel free to ask me for more information on sales or rental anytime!