Remodel or Sell?

Do you need more space? Are you thinking about remodeling your home, or is it perhaps time to move to another one?

The decision to remodel or move is often a difficult one. Once you've been in a home for a few years, you may become attached to both the home and the neighborhood. It's where you know the stores, the parks, the theaters and the best way to commute to work. If you have children, they may love their school. So what can you do?

Consider remodeling if you love your house and neighborhood, have the room and budget to expand on your existing property and can potentially realize a profit on the remodel. In making this decision, consider that you may need to move out during a major remodel, especially if your kitchen or other essential living areas are involved.

If remodeling isn't a good choice for you, moving to another home may have more advantages, including the opportunity to buy a larger or newer house, live closer to desirable schools or businesses, or shorten your commute time.

Four Ways to Add Value

When you purchased your home, you selected it based on your specific requirements for space, including the number of bedrooms and baths and amenities that fit your lifestyle. As you live in your home, you stamp your own personality on it through decorating, improvements and other enhancements.

How about adding value to your home at the same time that you personalize it? Here are the four most common ways to add real value to your property, for your comfort and enjoyment today-and for resale down the road.

* Maintenance: When left untreated, many small problems can blossom into major repairs. By spending a little time and money on the problem up front, you'll save major repair bills over time. A good example is earth-to-wood contact. Clear any dirt and debris away from the house to minimize pest infestation later on.

* Cosmetic improvements: The best way to enhance the value of your property is to paint, update fixtures and replace/refinish carpets and flooring. This immediately enhances your home's visual appeal and updates it without a major cash outlay.

* Remodeling: Select your projects wisely. Updating the kitchen and baths usually provides the greatest return on your investment. But make sure you don't over-improve for the neighborhood, or you will not get the return on your dollar.

* Financing: Stay on top of interest rates. You may want to take advantage of interest rate drops to refinance at a lower rate.

Cost-Effective Home Improvements

Spring is "high season" for home sales. So if you're thinking about selling your home any time soon, you'll want to make sure that it's in good overall condition.

A home in good condition will appeal to a broad group of potential buyers. That's because most people are simply too busy and/or don't have the skills it takes to fix up a home to make it livable. Many buyers like to put their own touches on their new home, but not necessarily handle the major repairs.

Most homeowners are willing to do small cosmetic tasks to make their homes more attractive and appealing. The fix-up can become an issue in a home sale when it involves substantial repairs, such as replacing the roof, fixing major plumbing or electrical problems, etc.

Another thing to consider when selling: a buyer will frequently make a lower offer on a home that needs repair. What's more, the appraiser may require that the repair be made before closing as a condition of financing the home. When a seller makes repairs to close the sale of the home, he or she essentially pays for the repair twice--once in actuality and again in a lower offer.

Homes that command top dollar and sell quickly are the homes in the best condition. So it's usually smart to do repairs before you list your home.

The Right Price for Your Home

You have a lot invested in your home, so it's natural to think your home is as valuable to others as it is to you. Unfortunately, sometimes that attitude leads sellers to overprice their homes.

When it comes time to sell your home, it's understandable that you'll want to receive the highest sale price possible. You may want to get more for your house than your neighbors received for theirs, despite the fact that they may have sold over a year ago in a stronger market. However, if you price your home too high, you run the risk of potential buyers passing it over. That's why it's important to know the true market value of your home.

A Comparative Market Analysis (CMA) can help establish the true market value of your home so you can set an appropriate sale price. A brief CMA can be a good initial decision-making tool. And before you list your home, be sure to request a full CMA completed by an agent who knows your neighborhood and has walked through your home.

Buyers may also request a CMA for a property they're interested in. That way they'll know if they are paying a fair price.