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a townhome or condo you saw for sale? E-mail me and I will get the information
you need, whether it is an Ocean View Condo,
High Rise, or a great townhome
on the golf course.
If you want to have your condo for sale
in Long Beach, CA, then these tips can be helpful.
This article also works for individuals and families in other great
locations!
The Value of Repairs, Improvements
and Additions to Your Home
Determining what to ask for when you are attempting to
purchase Long
Beach California Real Estate doesn't
have to be a mystery. Look at these typs to see what
repairs can be made. Anyone who has owned a home for
any length of time can attest to the ongoing maintenance
required to keep a home in good condition, not to mention
the time and expense involved in updating and improving.
Over those years, it’s
not unusual for some of the “little
maintenance jobs” to have been overlooked or
even forgotten. As a result, features and systems
in homes vary considerably in age and condition. In
many cases, the fact that these features have not
been replaced or improved can present a substantial
negative when it’s time to sell.
The purpose of this report is to separate the different
types of home maintenance and improvement tasks that you
may encounter, and how they may affect the market value
of your home. The nature of the task will in large part
determine the return-on-investment potential you can expect,
but never underestimate the importance of aesthetics.
The details of any project can make or break it. A poor
execution can leave an expensive project looking shoddy,
and a great execution can make an inexpensive one look
great. The return-on-investment potential can be divided
into three categories:
1. Repairs/Routine Maintenance:
Fixing or replacing those items or areas of the home that
have fallen below the standard level of acceptability
in today’s real estate market. Replacing rotten
boards on soffits, or tuckpointing the bricks on the chimney
that have eroded through are both examples of repairs.
Repairs should be considered routine maintenance –
those things required by you, the homeowner, to keep your
home in good condition.
Additional areas in this category include furnace, roof,
driveway, siding, tuckpointing, and even new windows.
These repairs will usually return only a fraction of their
cost if you sold your home immediately after completing
one or more of these projects. But, if you do not make
these kinds of repairs, they may cost you even more money
if they become an issue down the road during negotiation
with a buyer. A home requiring many repairs would likely
be viewed as a “fixer-upper,” often selling
for far less than other homes of the same size.
2. Improvements: Updating
kitchens, baths, painting, replacing older carpeting,
adding premium roof shingles, replacing an asphalt driveway
with concrete, or replacing a concrete driveway with paver
bricks are examples of improvements. The return-on-investment
potential for these projects can vary from 25% (concrete
driveway) to well over 500% (painting). Updating kitchens
and baths has a reputation of returning a high percentage
of the investment, but don’t “over-expect.”
There are not many new $20,000 kitchens that add anywhere
near $20,000 to the home’s value. Expecting a buyer
to pay retail price for a kitchen or bath that you designed,
selected and enjoyed is unrealistic. Like a car, the minute
you take it home, its value is reduced.
3). Additions: Additions
are improvements with added square footage or functionality.
Room additions, adding a second bath, and replacing a
one-car garage with a two-car garage are all examples
of additions. Care must be taken with these projects.
They can be very expensive, and often require time for
the home to appreciate and absorb the expense. Due to
the expense of such projects, return on investment will
likely be poor upon completion of the project, but will
increase as the home has an opportunity to “appreciate”
into it.
A good rule of thumb is to avoid such projects unless
you plan to stay in the home a minimum of three to five
years after completing large, expensive projects. If you
plan on doing much of the work yourself, or have friends
in the trades that can save you money, you may fare better
and ultimately recoup more of your cost. Keep in mind
that the finished product must look professional if you
expect maximum return on investment. It is important to
know that any addition, improvement or even repair can
be very subjective. If a simple repair makes a substantial
visual improvement, then it will likely be worth much
more than the investment. Inversely, if an expensive family
room addition is built onto a home but doesn’t “flow”
with the home or varies from conventional standards for
such a room, its value can be greatly diminished in terms
of return on investment. In other words, “The best
addition is an addition that doesn’t look like an
addition.”
You will occasionally see a newspaper or magazine
article quote the return-on-investment percentages that
you can expect from various home improvement projects. In
theory, these figures are wonderful, but theory and reality
are often strangers. These estimates can vary greatly from
one corner of the U.S. to another. Knowing the reasonable
market value of your home prior to your proposed project
is a good place to start. This cannot be determined by simply
keeping your eye on the home sales published in the newspaper,
or by making a reasonable assumption. Remember that similar
homes can vary greatly in condition and appearance, resulting
in wide ranges in market value. A close comparison of your
home to neighboring homes like yours that have sold in the
recent past is the best way to determine your home’s
current value. This is where a Realtor can be invaluable.
The Realtor should be familiar with your area’s homes,
both inside and out. A “Before & After”
evaluation of your home will give you both the current,
reasonable market value of your home as well as an estimate
of your home’s value after the proposed addition.
This will, of course, be a speculation, but may shed additional
light on the entire project.
A good question to ask yourself when making
improvements is, “Will this project give me more than
I have now?” If yes, then the project has the potential
for a good return on investment. If the answer is, “It
won’t give me more, but it will be better, nicer,
etc.,” then be careful not to over-expect.
Try to fight off the urge to buy top-of-the-line
fixtures. As a rule, anything you spend above the “slightly
above average” price range should be spent for your
own personal enjoyment. Excessive luxury adds little value
(except in ultra-expensive homes).
A point that cannot be overstressed is neutral
decorating. If you have plans of selling someday, keep things
simple. White, off-white, or light beige are the paint and
appliance colors to use. Benjamin Moore Navajo White is
the most widely recommended brand and color of paint. Kitchens
and baths fall under the same white/beige rule. If replacing
wood cabinets, the wood should be light or natural in color.
Painting wooden cabinets is a popular and inexpensive alternative
(white/off-white).
Be careful with bold colors. Magazines are
filled with many beautiful kitchens and baths that use bold
colors effectively, but most of those homes are very expensive,
where decorator touches are expected. New carpeting should
also be light and neutral. If you have hardwood floors,
consider exposing them or partially covering them with area
rugs.
Keep wallpaper to a minimum. Painted walls
can easily be repainted if the buyer doesn’t like
your colors, but wallpaper is tedious and time-consuming
to remove.
Ask your friends and family what they think
of your project (and ask them to be honest with you). You
may not agree with them, but it’s their opinion and
worth noting. The person who someday buys your home will
also have an opinion uninfluenced by your opinion. If you’ve
spent many hours working out your plan, you will quickly
become biased. Also, architects, builders or service people
may have an inflated opinion of how much value their service
or product will add. Opinions from disinterested third parties,
if considered, can help keep your thinking realistic.
Over-improving your home can also be risky.
Your home’s value is affected by the price of surrounding
homes. Turning your home into the biggest and best home
in the neighborhood will usually result in a lower sale
price than if it were nestled among other similar homes.
Of course, with something as personal as a
home, exceptions exist. Many unusual improvement plans have
a surprisingly good effect on the home. Other, seemingly
mainstream projects fall short of their intended effect
and yield a less-than-expected result. Your preconstruction
research and homework will still be your best bet for home
improvement success.
