This is another Throwback Thursday post I wrote in December 6, 2005, that still holds true today. The link to the Cost vs. Value Report still works and gives you a choice of years to choose from.
Cost vs. Value Report
One of the reports I really look forward to each year is the National Association of Realtors’ (NAR) “Cost vs. Value Report“. This report can help you make your own determination on whether a remodel project is worth it to you and gives you an idea of what you should be able to expect as a return on that investment.
If you’re thinking of doing a remodeling project for the sake of selling your home I would suggest speaking to an agent or home stager before doing anything. I’ve noticed that sometimes sellers want to do too much or they want to fix and replace items that won’t bring them a return on their investment.
Sometimes you have to think of more than just a specific return on what you’ve spent. Maybe a project won’t bring you a certain amount of money back (or nothing that can be measured), but some fix-ups or updates can make the difference of a quick & better offer than if you didn’t do anything.
A mistake I see many sellers make is spending money on a very personal selection that they like but others might not. I recently showed an Orland Park home for sale that had bright red cabinets. I wouldn't consider this a “remodel” and it wasn't done professionally, plus it was a huge turn-off to my buyers and the house had been on the market for a very long time. If you’re going to spend money for a professional remodel, or even new carpet, you need to keep it neutral. These buyers should have invested in a new paint job - probably changing the red cabinets to white or even a brown color.
I remember a gentleman seller who wanted to add to the market value of his home the supposedly $5,000 he spent on paneling (it was definitely not worth $5,000 and paneling was already outdated at the time I was on the listing appointment), and I couldn’t get him to understand that it’s not how home value works. I did not take that listing.
I did take a listing where the owner spent thousands on lavish and heavy drapery throughout her Palos Heights townhome and she was very proud of those window treatments, but she understood she couldn’t add what she paid to market value. I found out that those drapes were the first things the buyer threw out when she moved in.
If you’re considering putting your home on the market in the near future, keep in mind that in order to get a fast sale with the possibility of multiple offers, your property needs to be the best in the price range. That means the cleanest home with the most updates that appeal to the majority of buyers.
Call The Judy Orr Team at 708-536-8200 and we’ll help you determine the least expensive ways to make your home look the best in your price range.