How to keep the remodel low-stress and high-reward

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Preparing to list one’s home for sale can be an incredibly stressful time, and sellers are often filled with worry and questions about what exactly to do to attract the highest bidder.

Updating and remodeling the home in order to prepare it for buyer and real estate agent scrutiny may add to the stress, but can also lead to a major payout in the end. Not all remodels and updates are created equal, though, so how do you get the biggest bang for your buck?

The location of the home, the type of remodel or update, and the state of the real estate market are all major factors to keep in mind when listing a home, but trends do exist. According to Remodeling magazine’s 2015 Cost vs. Value Report, the details shouldn’t be glossed over. For example, a front door replacement ranked lowest in terms of project cost in 2015, but it ranks highest on the payback scale at 101.8 percent return. Other curb appeal and detail-oriented updates such as garage door and window replacements also rank highly in return on investment.

“Sometimes, updating without physically remodeling can be hardware, lighting, plumbing flooring, color of walls (or) texture,” says Sara Walsh, a RE/MAX Impact agent with 28 years’ experience. “Those are a handful of items that oftentimes can get you as much money as a physical remodel or add-ons.”

As expected, kitchen remodels offer the seller the most bang for his or her buck. Kitchens were the only type of remodel that broke the Cost vs. Value Report’s top 10 return on investment projects at 79.3 percent average payback. However, the seller must keep in mind that personal tastes may not match current trends, and the remodel shouldn’t go so far over the top that buyers aren’t able to foot the bill.

“If you’re doing things in resale like updating a kitchen, you don’t want to get too high-end because you won’t get your money back on it,” says Stacy McVey, a Keller Williams Realty agent with 24 years’ experience. McVey is also well-versed in flipping homes and renovations, as a former home flipper. “If you’re doing things for resale, you have to keep things fairly neutral, and not wild in color.”

The home must be prepared in a way that’s appealing to the masses, and trendy without being too steeped in a specific style. Potential buyers must be able to picture themselves in the home, so sellers should avoid updates and remodels that make loud statements.

“You always want to be careful for trends, because new trends don’t always last,” says Walsh. “There is a fine line between staging a home for sale, using an interior decorator to help you stage your home for resale and using an interior decorator for staging your home for comfort.”

Walsh says that often, clients confuse the difference between a remodel and an update. A remodel would entail moving walls, removing cabinets and adjusting the guts of the home such as electrical and plumbing, while an update means repainting cabinets, updating appliances or bringing in granite or marble countertops.

“Putting in a new furnace and AC, replacing old faucets … those are really just things you have to do as a homeowner,” says McVey. “Those are just home maintenance.”

When planning a remodel or major update project, it isn’t just about the numbers, but where and how money was spent. Getting halfway through a project and running out of money will surely hurt the resale value as much as updating with no real goal in mind. Walsh recalls a client who had remodeled or updated every piece of the home, spending plenty of money on preparing it for sale, but the project didn’t pay off due to the focus on quantity over quality.

“The bones were phenomenally good, but there were five different types of lighting and hardware styles,” says Walsh. “So although they could say everything had been touched, nothing was cohesive in what they did, so the house sat on the market.”

In the end, the best way for sellers to go about listing their home is to find a real estate agent they trust.

“Consult with a good realtor prior to when you think you’re ready, so they can coach you on things that you may have missed,” says Walsh.

Amanda DePerro is an assistant editor. Feedback welcome at gbishop@cityscenemediagroup.com.

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