It’s that time of year. You’ve just taken down the holiday decorations and the house looks a little plain. You begin to ponder that kitchen remodeling project that you have discussed with your significant other for the past couple years. And then you wonder whether or not that would be the best use of your home investment dollars.
You’re not alone in your curiosity regarding home remodeling projects and the subsequent value that they may or may not add to the re-sale value of your home. That’s why Remodeling magazine in cooperation with REALTOR® magazine produces an annual report describing the average cost recouped for 30 of the most popular home improvement projects in nine regions of the country. This year’s study included 79 markets.
The East North Central Region which includes Michigan is not unlike the rest of the nation in that exterior projects dominate the list of highest payback improvement projects. The number one project from the standpoint of recouping your investment dollars is siding replacement (with a 79.3% payback for fiber cement siding). The next three projects in order are very close in their percentage of investment recouped, with minor kitchen remodels coming in at 69.1%, a wood deck seeing a 68.9% return, and new vinyl windows yielding 68.5%.
If you would like more information on how this study was conducted or city-by-city results please click through to http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008 for the detailed report.
Over at RealHomeSense, Pat Williams explains how social media is creating the online villages and communities of the future. This dovetails into the online marketplace for real estate where Realtors® can can participate in the local conversation by answering questions and offering advice. Pat notes,
Sue the Realtor® will invite you an Open House using images posted on Flickr.
There are also some great links on interacting within these “online villages”.
In today’s challenging market, every listing must stand out and be noticed. Great photos, and plenty of them, are extremely important. Buyers want (and demand) to see lots of photos of properties for sale, and sellers demand them in the marketing of their homes.
If you plan on listing your house, make sure your agent takes a lot of GOOD photos. Make sure rooms are staged properly, lighting is good, and clutter is removed. This will help the prospective buyer to visualize themselves in the space.
The primary photo – usually the front of the property – should be fantastic. This is the photo that wets the buyers appetite to want to see more details and photos of a house.
Another key thing to remember is that a lot of real estate web sites will sort property listings by photo count. For example, the listings with more photos will be at the top of a property search and have a better chance of being viewed by a potential buyer. Your home is special, so take photos worthy of it!
Walk in to two identical homes. One is filled to overflowing with family treasures, one is pristine and almost barren looking. Both are identical in price. I guarantee you the almost barren home will sell faster and at a better price than the one filled with your treasures.
What is that saying, “Thank goodness we’re not all alike?”
Well, that goes for our taste in how we decorate our home. When a home is cluttered, prospective Buyers have a hard time imagining what their particular decorating style will look like within the walls. Take your personality out of your home before putting it up for sale. Remove all family pictures and even some of your furniture. Make sure your counter tops in bathrooms & kitchens are free from appliances & general clutter. Children’s toys should be in their toy boxes.If you have a dog or cat, take the appropriate steps to ensure their are no pet odors. If you have a room or rooms painted in NEON colors, a little paint in neutral shades goes a long way, and puts on a fresh face. We have a tendency to put what we are not using in our basements. Box & label everything, and make sure there is room for a person to walk around. Remember, usually you have at least two people plus a REALTOR® in a given space at the same time. Prospective buyers like to see clear walls, not ones with boxes & junk piled against them. They think you’re trying to hide something. A Home Inspector will need these walls cleared for an inspection, so prepare for this right in the beginning.
Curb appeal is extremely important. Take a good look the next time you drive up to your home. Imagine you are a Buyer looking at your home for the first time. Is the yard neat, grass cut, garage door closed? All of this plus, can give you an edge in getting your home sold.
If your home is vacant, a few strategically placed pieces of furniture can give it a homey look. Ask your REALTOR® for suggestions. They feel more comfortable to freely give you their input when you ask for it.
Here in Michigan, when you buy a home, the real estate professional that assists you must be licensed. The veterinarian that treats your pet is licensed too. Your stockbroker & insurance person carry a license. Get a hair cut, that person must be licensed as well. Ironically, when you obtain a mortgage, the person that guides you through that process, the loan originator, does not need to be licensed! If you are surprised at this, you are not alone. Although there are many high quality mortgage companies and high quality mortgage professionals at work here in Michigan, the existing “easy entry” into this industry has allowed more than a few “bad apples” into this business. Needless to say, not only does this impact the reputation of the industry, but this lack of oversight (to use the current buzzword) certainly has contributed to some of the market weakness. Thankfully, all of this changes as of January 2009 (unless modified by our friends in Lansing). New legislation requires that mortgage loan originators in Michigan must pass a thorough examination test, and be licensed by the State. Anyone convicted of a felony or misdemeanor related to embezzlement, forgery or fraud in a financial transaction in the last TEN years cannot be licensed to originate mortgage loans. Interestingly, originators employed by banks or depository institutions do not have to meet these licensing requirements. There is great expectation and hope that this new high standard will greatly improve the quality of the mortgage process in Michigan. Fraud will be reduced, processes will be better explained, & there will be fewer unpleasant surprises for homebuyers. In short, a strong & long overdue benefit for the consumer. The leadership in our industry & State government worked hard to put this new legislation in place. It is not perfect yet, but is is a great improvement over what we had. Chalk up a win for the good guys!
