Harleysville-Lansdale Real Estate and More

It’s here again.  Remodeling Magazine has issued its 23rd Annual Remodeling 2010-2011 Cost vs Value Report of the cost of home improvement projects and the return on investment at resale.  The costs below are for the Middle Atlantic states (NY, NJ and PA).   Across the board, the ROI’s for this year are down compared to 2009-2010 returns.  This table shows the five most common projects in which sellers expect a return on their investment:

*Upscale versions of these same projects consistently resulted in even lower ROI’s.   Complete data from the Remodeling 2010-11 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.  Reprinted with permission from Hanley Wood Business Media.

Based on this data and what we see daily in our market, we would never suggest to a seller to remodel their kitchen and bathrooms in order to sell.  There are much smaller improvements that can be made to ensure a speedy sale.  For example, replacing older Formica countertops with granite or replacing the appliances may be just the touch the kitchen needs to prepare it for sale (and well worth the $3K-5K investment).  Try sanding and painting kitchen cabinets before replacing them.  Replacing a damaged bathroom sink or simply updating a bathroom with a new medicine chest and faucets could do the trick.  Minor remodels and being frugal (not cheap) with home projects is the way to go in the current economy.  As evidenced from the table above, remodeling projects typically do not bring a full return on investment.

When selling, we think the best return on your investment will come from:

Decluttering (less is more)

Thorough Cleaning (scrub, scrub, scrub)

Fresh Paint and Carpeting (no wallpaper please)

Smart Staging (let a professional eye make recommendations keeping cost vs value in mind)

Curb Appeal (trim, manicure, plant, mulch, weed, paint, decorate)*

Repairs (if it is broken, fix it)

* A new front door and new garage doors have the highest ROI's nationally at 102.1% and 83.9% and are the least expensive projects cited by the report with both under $1,500.  The highest returns this year will be in the improvements that affect the exterior appearance of your home and improvements that will better utilize space and expand the interior and exterior living space.

Bottom Line: It is becoming increasingly difficult to recoup the cost of a home improvement project, especially as project costs climb and home prices are still well off their 2006-2007 peaks.  In general, keep improvements simple to maximize value at resale.  Replacing fixtures in otherwise good condition will only further lower your ROI.  But keep in mind, home improvements are for you and your family’s standard of living now and pride of ownership will always make your home sell faster and at a higher price.

Simply put, you don't need blueprints if you just want to sell.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

How Much Do I Need To Do To Sell? Remodeling versus Staging - Copyright © 2011, The Scott Loper Team, All rights reserved.

Here are 5 ideas for sellers who want to improve the showing quality of their home but don't want to spend a fortune or invest in a major remodel.  These are relatively inexpensive ideas that will make a big impact.

Replace builder-grade or outdated light fixtures.  There are so many beautiful options in lighting at very affordable prices.  A single fixture can be a dramatic finishing touch in how a home shows.  Consider pendant lighting over a breakfast bar, a small chandelier in a stairwell, or stained-glass light bulb shades in the bathroom. 

Spruce up an unfinished basement.  The condition of the basement can make it or break it for some homebuyers.  Repair any cracks in the cement block or poured concrete walls, wash down any stains or dirt, use a waterproofing paint and then add a last coat of paint to the walls and floors to add a touch of color.  Lastly consider replacing the ancient windows with new ones that can open.

Makeover the kitchen cabinets.  If the kitchen (or bathroom) cabinets and drawers are looking worn but are otherwise in good condition, consider sanding and staining or painting ($), replacing the doors and drawer fronts ($$) or re-facing the entire cabinet ($$$) as opposed to replacing the cabinets altogether ($$$$).   Lastly, tighten and oil the hinges, straighten any doors that are askew, consider new hardware and make sure the contents are neat and tidy, not overflowing and no junk drawers please.

Replace the kitchen counter.  This is a terrific way to overhaul a kitchen and there are beautiful options in every price range.  Can't afford granite?  One idea is to tile the countertop with 12" granite tiles at a fraction of the cost of a whole slab.  Another idea is to make the counter larger (if space provides) and make a breakfast bar.  Add a few bar stools and the kitchen's appeal notches right up in a buyer's eye.

Add or remove a wall.  If you have a huge room somewhere in your home, you might be able to add a wall and a door to make another bedroom or home office.  Likewise, you might be able to remove a wall separating the kitchen from the living room or dining room to open up the home.  If you can't remove the entire wall, another idea is to cut out an opening and add a pass-through or even a breakfast bar.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Showing Your Home - Big Bang for the $$ Copyright © 2010, The Scott Loper Team, All rights reserved.