Making home improvements helps house sell in down market

A well-maintained home coupled with an investment in remodeling could expedite the time it takes and enhance the price a home brings in the Las Vegas re-sale market.

But what if the owner cannot afford the cost or may want to wait until the market improves? What should be done now? What can wait until the home is finally listed?

According to Angie Hicks, founder of Angie's List, a provider of ratings and reviews of area service companies whose members rate their experiences with local businesses in 330 different categories, members plan to spend 2.9 percent of their homes' value on improvements this year. The average expenditure reported, $11,250, is 13 percent more than Angie's List members planned on spending in 2007. Headquartered in Indianapolis, Ind., there are chapters in 120 major cities across the country, with nearly 2,600 members in the Las Vegas chapter.

"In fact, now is a good time to plan your remodels," Hicks said. Angie's List surveyed about 80 home builders across the country who said they're taking on smaller jobs -- 43 percent said they're even cutting prices due to the slow market, according to Hicks.

When asked what should sellers do before listing their homes, Mark Pecoraro, vice president, Symmetry Construction & Design Inc., Las Vegas, said, "Sellers should definitely have all functionality and cosmetic repairs made before listing. Examples of these repairs are cracks or holes in drywall, scuffed baseboard, stucco cracks, loose tiles, etc. Many of these repairs are inexpensive and can make a drastic difference."

Tom Bixby, operations manager of Reliabuilt Construction Co., LLC, Las Vegas, cautions, "Avoid using an unlicensed contractor or one without extensive references. Reference lists show stability, something lacking in Las Vegas. A lot of 'fly-by-night' contractors come into Vegas to make a quick buck and get out, leaving homeowners with projects incomplete, or poor workmanship. A contractor who has been in town for a long time and has many references usually takes pride in the completed project."

Bixby finds that adding to the exterior of the home has increased value. "Add a custom-built patio cover or balcony matching the existing house. It will look as of it has always been there and will increase living space at the same time giving the house a more custom original look."

Tom Cartwright, chief operating officer of Diamond Water/PureOFlow Inc., Las Vegas said more and more people are looking to become "green."

"People are more interested in the environment and are looking for ways to 'greenovate' their homes," he said. "Our water purification systems provide for both: adding substantial value to homes while reducing their annual maintenance costs on all plumbing and water-related appliances. Providing purified water for the home without adding any salt or additional chemicals to the water."

Eco-friendly homes are becoming popular among buyers, according to Paula Young, vice president of operations for Coldwell Banker Real Estate, LLC, headquartered in Parsippany, N.J. "It makes sense on a number of levels to incorporate green principles into a home and many consumers are surprised at just how easy it is to do so," she said. "Not only is it great for the environment but homeowners are looking at going green as an opportunity to have their home stand out from the crowd."

Richard Smith, licensed general contractor and owner of Breeze Brothers Construction, Las Vegas, advises that before listing a home the owner should have "a contractor or home inspector identify items that may be required prior to selling. Items may be as simple as a proper lock on the pool access gate or GFI receptacles in the kitchen. They can also be quite expensive such as a new roof or grading of the property for proper drainage."

If the owner plans on staying the course of the market, Smith said, "fixtures, cabinets and color schemes date a home. If it's been five years or more since bleached oak or mauve paint were in style, consider planning a remodel project. Kitchens and bathrooms should always be the first significant expense in remodeling. Regular maintenance throughout the home saves on replacement or repairs later."

Market conditions often dictate what sellers can afford to do to stimulate buyers to purchase their home. There are still trends that apply whether the owner has no money, a little money or a larger budget.

"As far as showing a home with no money for updating, the simple arrangement of furniture to accentuate space, cleanliness, and order, can be a huge plus. The current trend in remodeling is to update, specifically kitchens and baths, flooring, and painting. For those with smaller budgets, upgrades can be made utilizing engineered materials and faux finishes, while still achieving the desired look.

"For those with large budgets, recent trends have shown the desire for high-end custom cabinetry, commercial grade appliances, designer glass and stainless tile work, in the kitchen. For high-end baths, slab marble vanity tops and tub surrounds, along with upgraded fixtures and large walk in showers have been the craze," Pecoraro said.

Unless an home owner really wants to enjoy a pool or spa while living in their home and waiting out the market, it's not a good idea to add one, said Devin Reiss, 2007 president of the Greater Las Vegas Real Estate Association.

"Most experts will warn you that you should not build a relatively expensive improvement like a pool or spa if your only motivation is to recoup that investment when you sell your home. In most cases, I would suspect that your $18,000 or $30,000 investment in a spa or a pool will not necessarily add an equivalent amount to the price of your home when you sell it. So, don't take the plunge if you're banking on a dollar-for-dollar return on your investment," he said.

What owners can do for little or no money is staging their homes, according to Toni Stewart, vice president Corporate Development, Coldwell Banker Premier Realty, Las Vegas.

"Staging is preparing your property to compete effectively with new homes that the buyers will be comparing your property to. The concept is to make the best impression possible from the moment the buyer pulls up to your property until they walk back out the front door. It's all about first impressions. You have 15 seconds when a buyer pulls up to your home or sees it on the Web. You have about 10 seconds when a Realtor is online doing a search for a buyer."

Hicks asks whether your home has curb appeal.

"Does the outside of your home say 'welcome home' to potential buyers? The front door to your home is a focal point. Go ahead and give it a fresh coat of paint and 'dress' the front porch with some fresh potted flowers."

Whether the market remains cool, home improvements, maintenance and repairs are still hot items that can influence a buyer to be drawn to the sellers' home. It is best to tackle one job at a time and remain positive. Eventually there will be a marriage between the seller and the buyer and the home.