Remodel for Resale

A new survey by Realtor.com, which polled hundreds of real estate agents and homeowners, shows that the two groups agree on the best home improvement strategies to sell a home.

The top three areas that sellers are remodeling and agents are recommending for improvement are the kitchen, bathrooms and home exterior. The top three low-cost projects recommended by agents, which sellers also list as top priorities, are decluttering, painting and landscaping projects under $500.

“The kitchen and bath are the areas where people spend most of their time,” says Mitch Rothman, broker associate with The Kentwood Company, Denver. “Adding slab granite to kitchen countertops and bathroom vanities is a good choice, and applying fresh interior paint, in a neutral tone, is a relatively inexpensive way to make a home sparkle.”

Timing, however, is one area where agents and sellers differed. Fifty-six percent of Realtors advised that these home improvements occur one to three months before the property is listed, while approximately 30 percent of sellers plan the projects for more than a year prior to listing the property.

Furthermore, 70 percent of agents think sellers underestimate the importance of simple home improvements, despite the finding that only 30 percent of homeowners polled do not plan any improvements. In fact, 24 percent of sellers expect to spend between $2,000 and $5,000; 22 percent plan to spend $5,000 to $10,000; and almost 17 percent aim to spend $10,000 to $20,000 on home improvements.

“If you can get away with a few inexpensive renovations, then great. But if you’re not getting the numbers you want, then adding a little more money [to the project] is always good,” says Tanya Memme, host of A&E’s “Sell This House: Extreme.” “Keep the extra spending in the kitchen and the conservative spending on the rest of the rooms.”