Resell Remodel

So you’ve decided to sell your home, but there are some things you need to do to get it ready to put on the market. This is a scenario that just about every homeowner will encounter, whether planning to sell in the next week or the next year. There are plenty of great projects that are desirable to buyers and add significant value to a home, and we’ve highlighted a few ideas and tips to get you started!

Research has shown time and time again that another two major aspects of a home which are most attractive to potential buyers are the kitchen and bath areas. In today’s market you can achieve a good return on your investment if you have the ability to spend a few thousand dollars in the kitchen and bath areas, but how many sellers have the ability to put $5,000 – $20,000+ back into their home just before selling it? Not the majority, so it’s important to focus on realistic remodeling expectations that provide the highest return on investment, not just the highest sale price:

–Interior paint is one of the projects that provides for the highest return on investment because it is low in material cost but high on labor costs, with the benefit being that most homeowners are capable of providing painting labor rather than having to hire a specialized contractor such as one would typically do when updating countertops, etc. However, even if you choose to hire a professional painter, it’s generally for a fairly reasonable price. Overall, painting is one of the most cost effective ways to add that fresh feeling to a home just before it hits the market.

–Light fixtures can be updated at a very low material cost and are fairly basic to install. With the right style and finish color, light fixtures are definitely a high return on investment and can help a home with outdated fixtures have a newly updated look, in many cases for only a few hundred dollars.

–Curb appeal, whether that pertains to upgrades to the front landscaping or to the front of the home itself, can easily be a top return on your investment. Curb appeal can also be an easy sweat equity one-weekend project to really add value to the front “gallery” picture that most websites use to first display your home.

In fact, more often than not when it comes to looking at homes on the market, it all starts with curb appeal. Your home’s exterior should be welcoming and well-kept for optimal presentation. Furthermore, as outdoor entertaining spaces are also growing in popularity by leaps and bounds, adding a few extra touches here can even help the right buyer imagine themselves and their family living there before they’ve even seen what the inside of the home has to offer. Most times you won’t have to make a major investment, but rather, just spruce things up a bit with a few “tricks of the trade.”

“When selling a home it’s important to avoid negative first impressions, and curb appeal is a major thing that attracts—or repels—potential buyers,” emphasizes Brandy Prettyman, owner of The Grounds Guys of SW Omaha. “When remodeling specifically to sell your home, think in terms of smaller projects that will tie everything together so that you can add a lot of visual appeal without it being necessary to invest a lot of time and money. Simply cleaning up the property will do wonders. One of the absolute best things a property owner can do that’s relatively inexpensive is to remulch and define garden beds. Unless it is fresh, especially in the case of organic mulch, this type of material looks weathered and dull really quickly. If you throw a quick layer of mulch down, even just an inch, it will really pop and clean up the entire look of the property. You’d be surprised how much simple things that can easily be fixed will push away prospective buyers, or will lead to lower offers than your asking price. Sometimes if the weeds are really bad or everything is overgrown, you are better off just taking everything out and redoing it with a fresh layer of mulch and a few basic plants. This way a potential buyer will also see a blank slate and begin to think about what their vision would look like, which helps them to imagine themselves there.

The bottom line is that more times than not buyers want a house that’s move-in ready, or as close as possible to that. If your yard is too overgrown you’ll likely get lowball offers because the buyer knows they will have to put the work, and more money, into getting it cleaned up. Here, a little bit of effort and money will go a long way into getting much more out of the home. There are plenty of things that a professional can help you out with which don’t necessarily cost a lot of money but will make a world of difference. Another key example is shrub and low level tree trimming. Again, it comes back to presentation and tying everything together. If you clean your plant beds out but have overgrown trees or haggard bushes, there’s a conflicting message. But together you’ll really transform the look of the property and the home itself.

Especially in the case of remodeling to sell a home, it’s more about cleanup and fixing any issues than it is installing new features. However, you’ll also want to keep in mind smaller, relatively easy projects that can set your home apart from others in the neighborhood. The key features, such a tree in the yard or the mailbox, are perfect accent points where your landscape will benefit from added interest. You could add a ring for a plant bed or put some taller grass and wildflowers around the mailbox for a completely different look.

My recommendation to sellers is to take a look at your budget and evaluate the value you will get out of any potential projects versus what you’d need to invest. Ultimately it won’t do you any good if you put a ton of money into the property and the work you’ve done won’t bring you any increase in value. Targeting your projects to what most buyers are currently looking for is extremely helpful. Ask your Realtor to show you similarly priced homes on the market and see what those yards look like. Also look at homes above your price point to see if you can get a similar look to raise the value of your home for a nominal investment. Then dial in on trends, such as what features they’ve seen to be most desirable and which are currently getting the most return on investment. Paying attention to the little things will help you to avoid mistakes but also give you an idea of how to set your home apart from the others on the market. If you see potential somewhere, set a budget and make sure to stick to that budget. This is where your landscaping professional can help out. Bring them your ideas and your budget, and see what they recommend. For example, with the blank slate garden, you may be able to put in hardwood organic mulch instead of rubber mulch for a cheaper but still aesthetically pleasing alternative. Your landscaping professional will also let you know why something wouldn’t work, such as a rock garden or sodding vs. seeding for bare patches in your lawn. Your timetable will also need to correspond with your budget, so keep that in mind too.

In all reality for sellers in today’s market, the landscape is a small area with a huge impact. Above all, make sure it’s attracting the right buyer and not detracting from all of the other great features of the home.”

If you do decide to take on a major project that’s deemed necessary to sell your home, it’s crucial to know exactly where your property lines are. You may be in a rush to get the project done, but keep in mind that it will be a major, potentially costly, setback in the long run.

“Knowing where your boundaries are on any lot will not only help you assess your landscaping projects accurately, but it will also give you the peace of mind that you are only improving upon your own property and not your neighbor’s by accident,” advises Toni Montana, owner of Land Survey Inc. “Furthermore, making sure that the property is properly surveyed is a major advantage to any seller, because the information can easily be presented to buyers so that they know exactly what they are buying.”

You may not be selling your home in the near future, but it’s still important with any major renovations to consider their potential value should you choose to put your home on the market. There are plenty of improvements that will not only hold their value, but will be extremely desirable to buyers in the future and will ensure that your home sells fast and at a price that provides a return on your investment in the long run.

“Automated home systems are in high demand among homebuyers in the current market, especially the systems that include comprehensive, or ‘Total Home Connect’ features that also include remote access,” advises Pat Killeen, owner of Engineered Controls. “As I recently mentioned on the topic of residential remodeling, according to many indications, our industry has seen a major push in smart home system installations and remote viewing of IP cameras within people’s houses. A recent survey by the Coldwell Banker real estate firm of their sales associates shows solid interest from home buyers for smart homes, with 65 percent responding that their prospective home buyers want security systems in their new houses and also want control of their home security, thermostats and devices to be available from their smartphones or devices.

Some people close to the real estate industry have said that in three to seven years they foresee houses being completely outfitted with smart technology for improving both functionality and lifestyle in our homes.

What I found interesting in this report was that there has been a great increase in homes listings that claim the house has smart technology and features. There is also some evidence that smart homes sell faster. So this means that the investment in smart systems and devices can be recouped by the homeowner, and they are increasing the value of their property by having these systems installed. These systems not only serve to protect our families, possessions and buildings, but they will also increase the value of homes and the salability of that value.”

He adds, “The most important benefit to upgrading a home control system during a remodeling project is that homeowners can now take advantage of new, cutting-edge residential technology that improves their environment and living comfort, reduces energy use, and provides increased security.  Today’s smart phones and wireless devices will keep homeowners connected everywhere.  Honeywell’s Total Connect Service provides a personalized web portal with mobile apps that allow the homeowner to stay connected to their home’s heating and cooling system and home security system from their smart phone, tablet or personal computer.

Total Connect by Honeywell has made a dramatic positive impact on home control technology. Total Connect allows the homeowner to remotely monitor and control their home at any time and from anywhere.  With Total Connect, you can take advantage of all of the amazing benefits next-generation digital technology has to offer – including enhanced communication and the ability to stay connected to your home from anywhere in the world.  The state-of-the-art security, lighting and HVAC controllers provides you with an affordable way to control your security system, video cameras and heating and air conditioning needs all in one simple to use system.

Homeowners can receive alerts via emails, view live video and control and access their security system, control lighting and lock and unlock doors remotely and more.  Plus the simplicity and comfort that Honeywell’s wireless Prestige IAQ HVAC system provides offers a full suite of wireless enabled accessories that help you meet home owners comfort and security needs.  Items such as universal diagnostics, water sensor alarms, carbon monoxide alarms, ventilation filtration alarms are just a few of the added benefits of owning such a home automation system.  The system also provides customizable reminders for replacing the humidifier pad or UV lamp replacement reminders.

Homeowners can also perform these functions wherever they are with Honeywell Total Connect Remote Services.  A built-in web server allows users to control their systems anywhere in their homes on smartphones, tablets, web-enabled TVs or any compatible wireless mobile device anywhere in the world.

Also, when looking into remodel your home, don’t overlook the importance of improving your home’s environmental control system – it will improve the air you are breathing, it will increase your HVAC equipment’s energy efficiency, increase your home’s comfort, and offer peace-of-mind by increasing your home’s safety and security.

Now more than ever we are able to offer connected home technology of the future – a home where heating, security and entertainment are fully automated and all of the latest gadgets enable creature comforts with the press of a button or a spoken command. From award-winning wireless thermostats and zoning systems to control your home heating and cooling comfort system, to security and monitoring technology like wireless occupancy sensors and cameras to give homeowners the peace of mind they are looking for. And the beauty of it is Engineered Controls already has integrated smartphone apps for the end-user interface from both Androids and iPhones. So when it comes time to sell, these things will be a major draw and an excellent investment that you’ve also been able to enjoy.”

From a financial standpoint, there are some major things that sellers should be aware of when making the decision to invest in remodeling their home specifically to sell it.

–Sellers should take into consideration the return on investment (ROI) on the updates done to the home. Many homeowners and first time home renovators run into trouble spending too much money on the wrong updates to a point where they can’t recoup the cost of those updates when the property sells… and at times it prevents the sale completely. It’s important to get in contact with a good Realtor that understands what areas would be the best return on investment and are worth doing to the home for the buyer to appreciate, as well as being the most profitable to the seller when the sale is closed.

–Major concerns for most buyers are the big ticket items such as the roof, siding, windows, furnace/air, wiring/technology and foundation walls. If it looks like one of these big-ticket items could be a problem it might be worth looking into what it would cost to get it fixed. Then either have that estimate ready for the potential buyers when they tour your home or go ahead and have the repairs/updates done so it will be one less worry for the potential buyer and one less hurdle to overcome when it comes to the whole house inspection.

“The last thing a home buyer will want to do when purchasing a home that has been remodeled is have to worry about repairing or replacing what they would consider big ticket items after they have moved in,” says Troy Spady of Complete Comfort Omaha. “Most of these buyers are looking for a home that is ‘move-in ready’ in every facet besides adding a few personal touches to make their home their own. Having an updated heating and cooling system adds to the attractiveness of buying a remodeled home. It helps show that no stone was left unturned in the remodel and that the house is truly move-in ready. Not only is it peace of mind, but today’s heating and cooling systems are more efficient than those 20+ years ago.

When you are preparing your home to put it on the market, don’t forget to give the furnace and air conditioner a good long look.  An old system will mean additional investment will be needed to get the home up to date and ready to sell. With the different options that are available to update heating and cooling systems, be sure to look at what a system will provide. Bryant’s Evolution furnaces offer features such as variable speed air delivery, Perfect Humidity, and Perfect Heat which all add to the overall comfort of a home. Depending on the home, looking at a WaterFurnace ground source heat pump may also be a great way to invest in the remodel. Sometimes the heating and cooling systems just need some TLC to get them ready to hit the market. Investing in the cleaning and inspection of the furnace and air conditioner is a great way to ensure equipment will pass a home inspection, is safe, and will minimize any issues for the new home buyer. It’s better to take care of any maintenance up front before your prospective home buyer walks through the door.”

Generally for most sellers, it’s also essential to focus on the following items:

–Declutter the house and remove all personal pictures and excess personal property as to help the new buyers picture the home with their own possessions inside instead of seeing the life that the previous owners have lived in the home.

–Fix any wear and tear or deferred maintenance in and around the home. Common repairs would be fixing holes, touch up paint, replacing carpet in high traffic areas, or other minor problems that have been getting put off. The closer the home looks to “move-in ready” the higher chance of the home selling faster and at a higher price in today’s market.

–Clean the home as if the sale depended on it, because many times it does. One would be amazed by the amount of transactions that never come together simply because the home is not clean enough. In most cases a Realtor would be able to suggest requesting a cleaning allowance to put the deal together.

–Avoid falling victim to the hot market by not performing your due diligence when selecting a Realtor to represent you and the sale of your home. The marketing exposure of your home still plays a pivotal role in expediting the sales process. Even in a strong market, a weak marketing plan will be detrimental to the sale of your home. When interviewing Realtors to list your home with, always request to see how encompassing their marketing plan is, after all that is what the majority of your commission fees should be going towards, so make sure they are being allocated appropriately.

Finally, here are a few more general tips on preparing your home for sale:

–Get a storage unit and move out about half your furnishings. Less is more. Your rooms will look larger with less furniture.

“The process of selling your current home and making the move to a new home is a major undertaking,” says Reva Tyler, owner of BlueCow Boxes. “Planning and preparation will make everything less stressful and BlueCow Boxes is ready to help. For temporary packing and storing during the transition to packing up all of your belongings and making the full move from your current home to your new home, industrial strength plastic boxes are ideal to maximize efficiency and to provide portability and organization. BlueCow Boxes can be stacked and moved on a two-wheel cart and/or the provided four-wheel dolly. Rental packages are both flexible and affordable; delivery and pick-up are also free within a 50-mile radius of Omaha.”

–Repaint to neutrals or modern colors. That hot pink your daughter had to have in her bedroom when she was 13 may have been cute then; it isn’t now.

–Kitchens and baths sell houses. If you are going to spend some remodeling money, that is the first place to do it. New faucets, new drawer hardware, new curtains, new light fixtures – these are inexpensive items that give a bright new look to old cabinets, countertops, etc.

–Get your outside vegetation under control. Prune shrubs, mow and edge lawns, seal cracks in driveways, replace broken sections of sidewalks, scrape and paint all exterior wood trim. Give your deck a coat of stain. Ensure doors open and close correctly, garage door rollers are lubricated and openers operate correctly, drains clear well, gutters are clean and spikes not loose, seals around sewer vent stacks are in good condition. Hiring a handyman to go over your house and fix all the little things shows a potential buyer that you have cared for the home. You only get one shot at a first impression!

–Have a pre-listing home inspection done. This identifies issues you may not be aware of, and the inspector can recommend things to repair or upgrade prior to listing that house for sale. Also, having a pre-listing inspection helps in the sale, in that it removes fear. That is the number one obstacle in selling a house; fear that there will be things wrong with it. When you present a pre-listing Inspection report, and can demonstrate that you have repaired some or all of the items found during the Inspection, it removes fear from the buyer about the house.

–Buy a home warranty for the house when you put it on the market. They cost $400-$600 on average, but it protects you and the new owner when the dishwasher decides to leak three weeks after they have moved in, or the furnace fails, etc.

–Make sure those working on your project are adequately insured during the process to cover any potential damage to your home and that your homeowners insurance is updated accordingly afterwards. Subsequent to a remodeling project, the value of your home will rise and the policy will need to be adjusted to provide coverage for the additional value. This includes replacement value for the materials used as well as any labor costs to re-do the project. If you have questions about the process, the agents at M & M Insurance Associates would be more than happy to answer them for you and can be reached at (402) 932-2910. Remember – not updating your insurance properly means that if anything should happen before you actually sell the home, your insurance will not cover the additional value and you will be out the investment you put into the home in order to sell it!

–Have the shingles assessed for approximate service life left and decide accordingly. If your shingles have about five years life left and you are planning to sell in three, it may be wise to consider replacing them. Old shingles are usually a major factor in marketing a house.

–Enlist the services of a Realtor. Their marketing experience, their knowledge of the valuations in the area, their ability to take care of the mountains of paperwork, conduct Open Houses, advertise, and expose your home to potential buyers is well worth the commission they charge.

While the market is definitely in favor of sellers currently, buyers are still looking for key things in prospective homes. Moreover, there are plenty of ways to add value to your home so that you are able to sell for price that it’s worth. Ensuring that all the bases are covered will make for a quick sale and a smooth, satisfactory transaction for all parties!