When it comes time to make the decision about putting the family home on the market, OUCH! It is not only your home, but it really is you. Talk to me about all the various considerations. The need for lower maintenance, your health, and desires are all quality of life issues. Is there a need to have everything on a single level, with possible wheel chair access within five years? Do we need space for the collections and how much of the furniture? It is important to look at finances short term and over the five and longer time frame. Financing is not just affording where you are moving to, but could also include creating an income stream. Some look at selling the house first. Some look at using a bridge loan to move. There is also an equity based program that will allow you to close and move before your house is sold.
Empty Nesters
More couples and or singles are moving to the city. With the kids gone it is the opportunity to get rid of a lot of the stuff in the house that really isn't needed any more. Moving to a town house, condo, or apartment eliminates all the maintenance of the house and grounds.
Those in their 50s and 60s are moving closer to work. The city life style is different and should be a consideration.
projects to boost home's value for resale
You've already decided to move rather than remodel, but now -- like so many others in similar situations -- you find yourself thinking abut remodeling anyway. Why? To make your house more appealing to would-be buyers, cut the time it takes to sell it and maybe even get more cash in hand when you sell.
And hey, while you're expanding, why not tuck in a new master bedroom suite above the addition? You'll get all of your money back when you eventually sell your house, right?
Not so fast. While many home-remodeling projects are a great way to add value to your home, not all of them are ironclad cash-back guarantees.
Before you invest a significant amount of your precious home equity into remodeling projects, it's wise to do a little homework on what kind of payback you can expect for various home projects in your area.
A good place to start is the Cost vs. Value report published annually by the National Association of Realtors, or NAR, and Remodeling magazine. The report provides a synopsis of the top projects, the average costs of the projects and their average rate of investment return at resale. It also gives you a city-by-city guide on what various home projects will pay back at resale.
Real estate experts caution that these numbers can differ significantly depending on your state, city or even neighborhood. So use these numbers as a starting point, but consider getting the advice of a Realtor and/or remodeling contractor before you commit to a big home project. These experts can familiarize you with remodeling payback figures tailored to your city.
1. Upscale siding (new fiber cement) replacement.
Average payback: 103.6 percent of cost
Estimated job cost: $10,393 for 1,250 square feet
National average resale value: $10,771
"Siding makes a huge difference in a house's resale value, because it's one of the first things you see. It really defines the condition of the home," says Moe Veissi of Veissi & Associates Inc., in Miami. "If other houses around you have old aluminum or vinyl siding and your siding is nicer and newer, buyers will notice you. With this project, you make your house more attractive -- you're not just improving your insulation value."
2. Midrange bathroom remodel. This includes updating an average 5-by-7 foot bathroom that's at least 25 years old with moderately priced fixtures, a double-sink vanity, a ceramic-tile floor and vinyl wallpaper.
Average payback: 102.2 percent of cost
Estimated job cost: $10,499
National average resale value: $10,727
"Improving an existing, but outdated, bathroom is almost always a good investment," says Finley Perry of F.H. Perry Builder in Hopkinton, Mass. "An up-to-date bathroom makes your home look like it's been kept in good repair, and that's what all prospective homeowners are looking for."
However, Perry cautions homeowners not to try to personalize their bathrooms too much or spend megabucks trying to turn them into ultimate home spas. "Your home is a valuable asset, and you want to treat it respectfully whenever you remodel," he says.
In other words, think twice about adding a pricey imported soaking tub or three separate shower stalls for your growing family's convenience. Those renovations might not fit the taste of a buyer 10 years down the road. If that happens, the money you spent on your bathroom renovation is down the toilet, so to speak.
bathrooms are often the most important rooms to update. They, too, can be improved without a lot of cash. "Even simple things like a new toilet seat and a pedestal sink are pretty easy for homeowners to install, and they make a big difference in the look of the bath," says Moran.
Moran also suggests replacing an old, discolored bathroom floor with easy-to-apply vinyl tiles or a small piece of sheet vinyl. "You may not even need to take up the old floor. You can install the new floor right over the old one," she says.
If your tub and shower are looking dingy, consider re-grouting the tile and replacing any chipped tiles. A more complete cover-up is a prefabricated tub and shower surround. These one-piece units may require professional installation but can still be cheaper than paying to re-tile walls and refinish a worn tub.
3. Minor kitchen remodel. This consists of giving a functional, but dated, kitchen a makeover. It includes new cabinet doors and drawers (with cabinet boxes left in place), a moderately priced wall oven, cooktop, countertop, sink and faucet and resilient flooring.
Average payback: 98.5 percent of cost
Estimated job cost: $14, 913
National average resale value: $14,691
Along with bathrooms, kitchen updates are almost always among the smartest remodeling projects for resale value, say the pros. "Home buyers seem to gravitate to the kitchen first when they're looking at a house," says Joe Traynor, a real estate appraiser in Indianapolis. "And as appraisers, we do give extra credit to houses with updated kitchens.
"However, I've also seen homeowners go too far -- they might put granite countertops and top-of-the-line stainless-steel appliances in a very modestly priced house," he says. "Those improvements aren't going to help the home's value in the long run, and the owner definitely isn't going to get his money back when he sells."
If your kitchen appliances don't match, order new doors or face panels for them. When Nicole Persley, a Realtor with Real Estate of Florida, in Boca Raton, was sprucing up her own home to sell, her mix-and-match kitchen bothered her. The room had a white dishwasher, microwave and wall oven mixed with other pieces that were stainless steel with black trim.
When Persley called the dishwasher manufacturer to see about ordering a new, black face panel, the customer service representative clued her in on a big secret: Many dishwasher panels are white on one side and black on the other.
"All I had to do was unscrew two screws, slide out the panel and flip it around. Sure enough -- it was black on the other side!"
Persley, who has remodeled numerous homes for resale, says that a more cohesive-looking kitchen makes a big difference in the buyer's mind -- and in the home's resale price.
Make your kitchen really cook. The kitchen is still considered the heart of the home. Potential home buyers make a beeline for this room when they first view a home for sale, so make sure your kitchen looks clean and reasonably updated.
For a few hundred dollars, you can replace the kitchen faucet set, add new cabinet door handles and update old lighting fixtures with brighter, more energy-efficient ones.
If you've got a slightly larger budget, you can give the cabinets themselves a makeover. "Rather than spring for a whole new cabinet system, which can be expensive, look into hiring a refacing company," says serial remodeler Gwen Moran, co-author of "Build Your Own Home on a Shoestring."
"Many companies can remove cabinet doors and drawers, refinish the cabinet boxes, then add brand-new doors and drawers. With a fresh coat of paint over the whole set, your cabinets will look like new."
If you're handy, you can order your own replacement cabinet doors and door fronts from retailers like Lowe's Home Improvement or The Home Depot and install them yourself.
4. Midrange siding replacement. This more modest variation of the No. 1 ranked project (upscale siding) includes replacing 1,250 square feet of siding with new vinyl siding and trim.
Average payback: 95.5 percent of cost
Estimated job cost: $7,239
National average resale value: $6,914
The value of this project is in its immediate curb appeal: New siding cleans up a house quickly. However, Perry points out that vinyl may not be appropriate and could actually detract from a home's value in historic neighborhoods or upscale areas where traditional wood siding is still the preferred material.
5. Attic bedroom remodel. This entails converting unfinished attic space in a two- or three-bedroom house into a finished bedroom and bathroom with shower. It includes a new shed dormer, new windows and closet space in the eaves.
Average payback: 93.5 percent of cost
Estimated job cost: $39,188
National average resale value: $36,649
Because this is a relatively expensive undertaking, real estate experts suggest you do an attic renovation only if you're going to live in the house for a while (preferably five to 10 years) and enjoy the reclaimed space yourself. Over the long haul, this project adds significant value to your home because it creates brand-new living space and isn't just a cosmetic improvement.
Keep in mind, though, that attic remodels don't make sense in every neighborhood and part of the country.
"In Florida, most of the attics aren't big enough to stand up in, so remodeling them wouldn't make sense at all. Plus there's the heat issue -- these rooms would be sweltering hot for us and very expensive to cool," says Viessi, a Miami Realtor.
"This is a good example of a remodeling project that would be wise to discuss in advance with a Realtor who's familiar not just with housing in your area, but in your specific neighborhood," says Viessi. He says good Realtors are always happy to spend time talking with you about the wisest renovation projects for your home -- even if you're not planning to sell your home anytime soon.
Other top resale projects from the Cost vs. Value report ranked by percentage of cost recouped at resale, include:
· an upscale bathroom remodel: 93.2 percent.
· a major kitchen remodel: midrange, 91 percent; upscale: 84.8 percent.
· a deck addition: 90.3 percent.
· basement remodeling: 90.1 percent.
· window replacement: 89.6 percent.
· a bathroom addition: midrange: 86.4 per cent, upscale 85.8 percent.
· roofing replacement: 84.7 percent.
· a family room addition: 83 percent.
· a master suite addition: midrange 82.4 per cent; upscale 80.1 percent.
· a home-office remodel: 72.8 percent.
While a good return on your investment is important in every remodeling project, experts say that the most important factor in your decision should still be whether the project improves the way you live in your home now.
"The fact of remodeling is that you never get your money back instantly," says Perry. "If you're undertaking a project because you're going to stay in your home awhile, and it will enhance your lifestyle, then great -- do it. It's tough to put a price on the happiness many young families get from fixing up their house and truly enjoying it for the next 20 years."
When planning a home improvement project you may have favorite "must do" projects, but it pays to design with resale in mind. Try these seven quickies:
· Select neutral colors: It creates a blank-canvas effect for potential buyers.
· Upgrade your kitchen first: It's the one room buyers use consistently to determine how well a house has been maintained.
· Paint, paint, paint: It's the quickest and most inexpensive makeover technique. If the exterior paint is faded or weather-beaten, a fresh coat of paint is a cost-effective sales tool.
· Hide those flaws: Textured wallpapers and faux wall finishes hide a multitude of surface flaws.
· Focus on floors: Whether wood, tile, laminate or vinyl, make sure they're inviting, not cracked or discolored. Again, neutrals sell best, natural wood best of all.
· Cost-cutting ideas: Use wood or tile to dress up laminate countertops; stencil that backsplash instead of installing tile; consider marble sheets instead of ceramic tile for that tub surround.
· Keep all options open: One man's workshop is another man's wine cellar. Don't eliminate options when you remodel rooms.
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