Want Top Dollar? – Home Improvements that pay

I’ve never met a seller who doesn’t want top dollar.  Some understand that top dollar in two weeks will be lower than top dollar in two months but they all want top dollar.   Whether you’re selling your first home or working on your 1st fix-n-flip, knowing what the market will bear is the starting point to a successful selling plan.   But establishing what top dollar is an art not a science.  On paper, prices for a neighborhood can usually be ‘ballparked’, usually within 5-10% of the home’s value.  Once you get inside a home, prices can get a little fuzzy.  Evaluating how much an improvement will raise the value of a home is tricky.  Any improvement to a house will improve the value, the question is, how much? Will you even get your money back and is it worth it before putting your home on the market? A recent cooperative study between Remodeling Magazine and the National Association of Realtors (Realtor Magazine) has produced a Cost vs. Value Report for 2006.

 Remember, in most cases you won’t see a dollar for dollar return on investments.  There is an invisible price cap usually dictated by what comparable homes with similar quality features are selling for.   Consider improvements to your home a neccesity if you want to sell your home at all in the current market.  Especially if you want the highest price for the neighborhood.  But remember, improvements like maple cabinets and granite countertops are amenities that simply let you price your home similar to homes with the same features.  If your home is the only one in your neighborhood with granite countertops, don’t expect to get the full cost of the countertops back. When deciding where to spend money on a home, avoid things that can be easily overlooked, and rather focus your monies on the important tasks.

  Spend your money on the “BIG 4″. 

• Curb Appeal, if they don’t like the outside, they won’t come in.  Take a look at your roof and front door from the street.  How does the landscaping look?
• Kitchen.  It’s the most lived room of the house, make it clean and attractive. 
• Baths, second only to kitchens for importance, are next.   
• The “wow” effect.  If you have any money left, try to come up with something you can emphasize about your home that makes it stand out from the others.  This is where the granite countertops comes in.  Maybe refinish the hardwoods.  Add a deck or the ever popular outdoor living areas that can expand the perceived SF of the home.  As for the rest of the house, make it clean and functional.  Don’t fix what isn’t broken. 

And whatever you do, don’t over-improve for the neighborhood.

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