Cost vs Value in Remodeling - Should you fix up before you sell?
Fix up? Sell as is?
According to the latest NAR survey the projects that recoup the most remodeling dollars are Decks, Siding, Kitchens and Windows. Each year in December through a very complicated process NAR gathers information from builders and remodelers and compiles a list and a perchantage invested for pojects such as bathrooms, kitchens, whole house remodels, basements, etc. PLEASE don't go out and spend your money on these projects.
As a keen observer of what is selling and what is not selling I have a few ideas and opinions. This will not be a complete list as what to do and what not to do. These are a few of my observations.
Neighborhood counts the most. A dated house in a desirable neighborhood will sell quickly. Portland Metro has neighborhoods that are sought after and investors look for rehab houses in these neighborhoods.
There is a price for every house and a buyer for every house. That sounds like a no brainer, but it is the job of a real estate professional to discover this price through proper marketing and feedback from potential buyers.
Some homes have good floorplans and good bones. Depending on the circumstances of the sellers, spending an amount of money may realize a desired price. For instance, a house is on the market for $250,000 and no one is interested in purchasing it because of the condition. The condition is dated and the house needs some fix ups in the amount of $10,000. If this money were spent correctly with the right improvements this same house may now sell in the neighborhood of $275,000. OK, you say, I just spent $10,000 to get an extra $15,000? My response would be you spent $10,000 and the house SOLD - AND - you got an extra $15,000. Without the remodeling the house would still be on the market. You could have lowered the price to $225,000 and it may have sold, or maybe not.
Today there is a very large inventory of houses on the market. Many of the houses on the market are short sales and bank owned properties. Many houses on the market means one thing. Each house on the market is competing against every other house on the market for attention. We have a decent market in Portland/Vancouver Metro There are buyers out there but there are fewer buyers than houses on the market. Where do you put your house as far as price, value and presentation?