Spend a little, sell your house

Experts warn that there’s a fine line when it comes to how much money sellers should spend on their homes to prepare them for sale. Do nothing and sellers might have a hard time attracting buyers. Spend too much and sellers won’t recoup their expenses.

How much is too much?

Statistics show that the best bang for your remodeling buck comes from bathroom and kitchen renovations. According to a 2006 survey by Remodeling Magazine, a bathroom remodel that costs about $13,000 could get the seller about an extra $11,000 in the house — recouping about 85%.

Other renovations may not allow the seller to recoup as much. For example, according to the study, the addition of a sunroom to the house would only recoup about 66% of the additional cost.

Instead of the high-priced renovations, there are a variety of low-cost options to help spruce up a home.

Add a new coat of paint inside and outside if needed. A simple paint job can do worlds of good to improve the look of your house, Begin said. She suggests more neutral colors.

– Spruce up the kitchen and bathroom. Instead of high-cost remodeling, simple changes in the kitchen and bathroom can go a long way. Install modern-looking faucets and new handles and knobs on cabinets and drawers.

– Improve the “curb appeal” of your home by making the front look as welcoming as possible. Make sure the lawn looks great, plant a few flowers and replace anything unsightly such as an old mailbox. Make the front door look welcoming, perhaps with an updated doorknob.

– Complete all of those little problems that you have probably been living with for years. All of those little idiosyncrasies in a house like drawers that stick or banisters that are loose can add up for potential buyers.

– De-clutter the house. Excess furniture and knick-knacks often can make a home feel smaller than it really is. Before selling, you probably also want to take down a lot of personal items so buyers can envision their own lives in the home.

–  Make sure the carpets look great. Rent a steam cleaner or hire a professional, but make sure carpets look as if they are in tip-top shape when the seller comes by. If worst comes to worse, they may need to be replaced.

A lot of these low-cost changes can go a long way when considering selling a home. Still, don’t over-do it. Sellers should probably save much of the time and effort of renovations on a home they plan to live in for awhile, not on a place they plan on getting rid of.

Quick tips to make your home appeal to buyers

– Add updated faucets and kitchen knobs in your bathroom and kitchen. These simple things can change the whole look of the room.

– Put flowers in front of the house, especially near the front door. Add a pot of bright flowers at the doorstep. The color red tends to be appealing to buyers.

–Bake fresh bread or chocolate chip cookies before you have an open house. This may sound crazy but the smell gives the house a homey-feeling that appeals to buyers.

How much will you get back for your remodeling investment?

Job cost–Resale value % cost recouped

Basement remodel  $56,724  $44,685  78.8%
Bathroom remodel  $12,918  $10,970  84.9%
Deck addition   $14,728  $11,307  76.8%
Major Kitchen Remodel $54,241  $43,603  80.4%
Minor Kitchen Remodel $17,928  $15,278  85.2%
Sunroom Addition $49,551  $32,854  66.3%
–Reflects national averages

3:12 PM - Jul. 19, 2007 - comments {2} - post comment

re: Spend a little, sell your house

Great article, but it's been my experience that in quite a few situations the homeowner can actually recoup 100% of their costs. Of course it depends on what that is, but it's certainly in many cases very necessary to spend money to make money in real estate these days.

Ron Henderson - 8:27 AM - Jul. 21, 2007

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re: Spend a little, sell your house

Thanks for the comment Ron.  I can attest to this from first hand knowledge.  We recently put my Dad's home up for sale in suburban Phoenix.  We were able to "walk the talk" and did everything we Realtor's are always telling Sellers to do.  We painted, we cleaned and we staged that house.  And in an area with a 10 month supply of available inventory, we received an offer within 30 days.

It does make a difference.

Andi

Andi Durbin - 12:12 PM - Jul. 22, 2007

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