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FIND YOUR DREAM HOME OR APARTMENT

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Mar 15, 2014 9:05AM
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C2P as P2L Cost to Profit as Profit to Loss.  Let's look at the reality of the situation people sell for two basic reasons to move locations or they have to sell for financial reason.  The later having little ability to improve much as the market has probably turned them upside down on their house.  And those that have the ability and fluidity to pay for improvements to sell must remember one basic rule, "NOT EVERYONE LIKES WHAT YOU LIKE"  Take a reality check these articles and improvement recommendations are a travesty of gross proportion.  Have your house clean, put excess clutter into storage hire a groundskeeper and bring in some fresh new plants and grass.  Paint you're front door and clean your carpets put in fabreeze plug ins through out the house wash the windows. No one wants to buy your trash and clutter.  Add 5% to the asking price of the house and then offer new carpet credit, or a granite countertop upgrade credit which would allow upgrades that they would want (NOT YOU) then the asking price keep in mind you must be market reasonable. You would have great appeal and seemingly a lot of available space in the house the cost to profit for you is minimal and you are able to repackage your house as roomy, neat, clean, fresh, and manicured.  You make the choice 100's vs. 10,000's?  Hope it helps a bit!      

Feb 18, 2014 11:53AM
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If you're not staying in your home, why invest a ton of money for someone else to enjoy. If you're staying in your home, then do what will make you the happiest.
Feb 12, 2014 8:39AM
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That kitchen wall tile actually makes my eyes hurt ..
Feb 12, 2014 8:12AM
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Just sold my home. Didn't get near what I wanted but it sold. The problem was my agent came over and did all the market analysis and comp reports and gave me a list price knowing I was installing new carpet. Carpet is basically a consumable aspect of a home because it does wear out and needs to be replaced. So I signed the contract and within 2 weeks my agent only then started talking about putting in granite counter tops and tile in the kitchen because my house was the only house in the neighborhood with laminate counters. That would have cost $5k-$6.5k. I know that isn't true because I have been inside many of the homes in my neighborhood and only about half have granite. Told her NO because if someone wants to remodel they can pay for it themselves and I would lose the cost of putting it in plus the difference of any offer below my asking price. I think I made her angry because I didn't hear from her for 7 weeks. Then she called and told me that I needed to take the wallpaper down in 4 rooms, retexture the walls and then paint them. Plus, I needed change out some bright brass light fixtures. I checked it out and that would have cost about $4k+. I told her that for me to do that we would need to raise the list price by $10k so I could recover at least 80% of my investment after negotiations. She didn't like that idea but this is what my contractor home builder neighbor and his interior designer wife told me to do and my CFP agreed. But the point is, everyone agreed that these changes should have been talked about and possibly done before any contract was signed and then figure out the list price. My list price would have been much higher if I had done these things. If I had done the changes like she wanted then and took the offer I got, on paper I would have been down $20K-$25K on the proceeds after the sale. The only thing that saved me was my broker went in and closed the deal at my lowest offer. Her agent works like a car salesman. Get the deal and then add on the customer out of pocket expenses. Don't fall into the trap I did. If you are going to make these modifications, do it before you even contact an agent. If they want you to make changes like this that are your out of pocket costs, then they are just trying to get you to do the work for them to make the sale at no cost to them. Oh, I talked to my broker and she agreed to reduce her "fees" (not broker fees) to compensate me for only getting me the low end offer. Got me a little over $1k more from that. She felt bad that her agent really wasn't working for me and also this is the 3rd transaction I have used her agency for in the last 14 years. The other 2 agents from years ago were really wonderful, but not this last one. I should have followed my instinct when I met her. I always felt pressured to spend a lot of my own money, she is a retired police officer, and finally, she bought a couple of things from me that I wanted to get rid of but never paid me. Not a good sign of character if you won't pay $30 as promised and you were a police officer.
Feb 12, 2014 6:26AM
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If you are looking at my home with new home eyes, your are looking in the wrong direction.
Feb 12, 2014 6:07AM
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I agree with other comments and will add my own two cents.  Many of these articles seem to confuse adding to the market value of a home with making it more attractive to sell.  The realtors say better = faster sale = selling at or near full price.  

I've purchased five houses and sold four, and not once did an appraiser enter my home to see if I had granite counter tops or new cabinets.  They look at comps, square footage, number of bedrooms and bathrooms, and the general condition of the property - from the outside.  Every realtor I've ever worked with has told me to do a really good job of cleaning and staging.  The most I've ever spent to get a house ready to sell was fresh paint and new carpet.  

Both realtors and appraisers have told me in the past that spending money on adding square footage and/or adding a bedroom or bathroom, are more effective ways of increasing my home's value as long as I can keep costs at or below the appraised value for the additions. But I still need to keep an eye on market comps, and the appeal of my neighborhood. Don't  over-improve for the neighborhood, and timing is everything.  Depending on the market conditions, it may take years if not a decade to get back any investment, and by then what was new is now old.

I had two neighbors who did major overhauls of the interior and exterior of their homes; one ended up being the most expensive home in the neighborhood, and the other homeowner did too much upgrading without adding square footage, bathroom or bedroom.   The comps for his home were still the same. Both owners lost their homes due to foreclosure.  

Whatever major improvements I make to my house will be because it is my home and I want to enjoy it.

Feb 12, 2014 6:05AM
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Different topic: How about constructive ideas for log homes.  I am now the proud owner of such a home, and while the downstairs has come together nicely, the one open space of the upper level has me perplexed. It is approx.  22 x 22 and must serve as bedroom & sewing/craft area.  
Feb 12, 2014 5:31AM
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Wow some of these suggestions would eat up your equity on the selling price. If you add a second story, replace siding and windows then why move! If I were to do any those improvements it would be because it would be an investment now in anticipation of selling the house in the far future (5 to 10 years). Then the return of your investment would come into play.  Now replace and/or painting front door is more reasonable. What they fail to mention is best way to sell your home is staging and curb appeal. I am not a realtor but after selling and buying four homes some realtors taught me a few tricks.
Feb 12, 2014 5:26AM
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What's the point of putting ANY money into a house that you are going to sell if you aren't going to recoup MORE than you spent?  The math doesn't work out.

 

Why spend $50,000 to increase the sale price $35,000?  You'd make more profit by not doing anything and selling it as is.

 

I don't consider anything an ivnestment if it doesn't pay more than I put in.

Feb 12, 2014 5:25AM
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Why would you spend money to improve the price of your home when, according to this article, YOU WON'T SEE AT LEAST A 100% RETURN? Example: If my home is currently valued at $200K and I put another $50K into a basement remodel I can only get a $39K boost in the home's value. I stand to lose $11K. I say sell as is and pocket the difference! ($200K + $50K = $250K; new value is only $200 + 39K [78% of my investment]) = $239K)
Feb 12, 2014 5:19AM
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Oh baloney.   I sold my home in November for less than I paid  for it, even with a very high end bathroom renovation and kitchen update. 
Feb 12, 2014 5:09AM
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Hey? According to HGTV remodels, their programs typically show more than 100% return on investment. What's up??


The appraisal system is a joke. The only time any house is comparable with another is at first sale and in a tract home subdivision. After that individuals begin the process of customizing to their level of desire OR, they begin to let the property decline without needed maintenance.


Every property should be evaluated on its own merits. That would require better trained appraisers and realtors. More work from them to earn their questionable fees. More responsibility for homeowners to document both maintenance (keeping the status quo) and the owner installed upgrades  that truly add value.

Feb 12, 2014 5:06AM
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"a full, upscale bathroom remodel project can cost over $50,000 ". Maybe, but I refurbished one of my bathrooms - new tub, toilet, pedestal sink, sheetrock, ceiling, fan/light fixture and flooring for under $600. Sure I'll get a positive return on investment on that.
Feb 12, 2014 4:38AM
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If you do all these things then you will want to keep it... Most of these items are why I want to sell it.
Feb 12, 2014 4:34AM
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True just a little work can add some value. I put down an Epoxy Floor in our garage and spruced up the walls a bit, and put in a work area. Initially for me, but it turned into a selling point later on down the road. The Epoxy was a Do it Yourself kit from MuscleGloss and I could have had a contractor do it, but didn't have that much money. I put dry wall up and found some old cabinets to put up for storage. Looked like a brand new garage.
Feb 12, 2014 3:09AM
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This is complete fantasy!.  Every realtor today will tell you that your home's sale price is entirely dependent on the APPRAISAL, which is heavily based on comparable sales in your area.  While remodels and other enhancements will definitely help you sell your home, the appraisers these days are tying home values to similar sales in your neighborhood regardless of appearance and upgrades or how much love you put into your home.
Feb 11, 2014 11:49PM
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Never mind, I looked at the costs at the website and it is apparent that this is not based upon a DIY cost. 
Feb 11, 2014 11:44PM
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Does percent return include contractor cost?  Some of these can definitely be DIY projects, I know time is money and construction equipment is a cost whether contracted or not, but the percent yield would be much greater if you remove the contractor from the equation.


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