Remodeling projects, green upgrades add value to home
Q: What advice can you give me about remodeling my home? We may want to sell it in the coming years when the market rebounds and are wondering if it makes sense to do some basic remodeling and improvements.
-- Amy M., Las Vegas
A: You're not alone in considering some remodeling projects at your home. In today's housing market, I see a number of clients and homeowners doing the same. I think it's generally beneficial to do some remodeling to make your home more marketable when you're ready to sell.
To me, one of the best places to start is in the kitchen, since many buyers focus on that part of a home before others and it tends to have a good return on your investment. Start by taking a hard look at your countertops, cabinets, appliances and fixtures. Replace and upgrade what you can. Whatever projects you undertake, it's unlikely that you'll recoup the total cost of your remodeling projects when you sell your home. Based on research by the National Association of Realtors, you'll be fortunate to realize a 70 percent return on your remodeling investment, depending on the project.
Since it sounds like you plan to live in this home for some time, you may want to make your remodeling decisions based on what you like and find valuable. That way, you can at least enjoy your improvements while you live there.
A swimming pool is a common example. If you really want a pool and plan to make good use of it, it might be worth the investment to you. But keep in mind that some potential buyers may not want a pool, which is one reason you may not recoup your investment when it's time to sell your home.
Also keep in mind that you may not want to improve your home to the point where it would have to be priced too far above the average home in your neighborhood.
In any case, well-done upgrades to your home should add value, make it easier to sell in this very competitive market and help set it apart from others in your area.
One increasingly popular remodeling trend is to make your home "greener," or more energy-efficient. Examples range from more costly upgrades like solar water heating and power systems to simple things like converting to more energy-efficient fluorescent light bulbs. In our warm desert climate, I think new and additional insulation and energy-saving double-paned windows make good sense. As part of this green movement sweeping our industry, the Greater Las Vegas Association of Realtors is adding additional fields to its Multiple Listing Service to highlight energy-efficient features of local homes listed for sale.
Once you've gone green and are ready to sell, look for a Realtor who has earned the new green designation, indicating expertise in these areas. Recent studies, including those conducted in Portland and Seattle, have shown that greener homes sell faster and for higher prices than typical homes.
Here are some other remodeling tips:
• Consider upgrading your flooring. Many local homes can be made more marketable by converting old carpet to tile floors, usually leaving new carpet in the bedrooms.
• Replace old plumbing and lighting fixtures.
• Replace an old wooden or fiberglass front door with a new steel door.
• Re-caulk where needed, especially around sinks and showers.
• If needed, repaint the inside and outside of your home, usually with neutral colors. Before repainting the exterior, check with your homeowners association if you live in an HOA.
• Hire a professional to inspect your home. Since no home is perfect, it can be a good investment to find out about any problems or repairs that need to be made before you list your home for sale.
Paul Bell is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 30 years. To ask him a question, email him at ask@glvar.org.
