MARLBORO,NJ REALTOR

Marlboro NJ Homes. Is remodeling your home worth it during a down market?

Marlboro Homes, Remodeling - Roy Giordano

I'd like to share this blog I found on Active Rain. It was written by a Realtor from Cal. and he makes some excellent points. I hope this proves helpful.

 

I get asked this question all the time as homeowners who are trying to sell their homes consider the amount they should allocate for repairs.  There are two main areas of thought that exist today around this subject.  The first focuses on "Maximizing Returns".  If you are trying to maximize returns then any investment in home repairs that does not change the living status is not advised.  When I use the term living status this means that if a home is unlivable in its current condition and you were to invest in the home to make it habitable then this would result in a change in its living status. With the majority of local markets declining at a rate of 10% or more annually, investing in major home repairs doesn't make sense from a return perspective because your home will not appreciate greater than the amount of the investment within the next few years.

However, I do not necessarily agree with "Maximizing Returns" approach in all cases.  The core reason being if your goal is really to sell now or you must sell, then the question changes to what must I do  to make my home, more competitive than others on the market.  At this point, depending on your repair budget this may be a strong consideration. 

When determining where to place your funds, many will say to immediately place money into upgrading your kitchen and bathrooms.  While in most cases this is correct, however it is important to understand why.  The key is to examine your home as compared to others on the market and invest in areas where your home will naturally gain a "competitive advantage" over other homes in the market.  As an example, lets say other homes on the market have a much nicer outside appeal. The homes in the area have nice custom wood doors, updated paint, stucco, or siding an your home is in need of exterior maintenance.  All things being equal (assuming your kitchen is comparable to theirs), I would not invest in updating your kitchen first.  I would seek to improve the exterior of the home as many buyers will never get past the outside of the home if it is not appealing. 

So, lesson learned here is to think of your home as competing with others.  Whatever you can do to gain a perceived difference in value as compared to others homes in the area is something worth considering if your ultimate goal is to sell in the short term.

 

Thanks

 

Joseph Bradley

Broker Owner - Family Realty Group
Real Estate Strategy Experts

Family Realty has specialized in REO, Short-Sale, and Pre-foreclosure properties for over 30 years, with our founder and my grandfather Joseph Goodwill.  My success as the owner and chairman is based on maintaining F.O.C.U.S. during market upturns and downturns: F.O.C.U.S. stands for Financially Secure, Operational Expertise, Customer Focus, Unparalleled Industry Knowledge and Superior Technology. We are a boutique real estate firms that provides personalized services to consumers or banking institutions looking to sell or purchase a home in Contra Costa, Alameda, and Placer Counties located within California.  As the Broke-Owner of Family Realty Group, I am personally involved in all of our client transactions ensuring the highest level of focus and accountability in servicing your needs. If you would like a FREE Home Seller or Home Buyer Handbook, or list of available REO properties please call me at 925.401.0405 or email at josephb.frg@gmail.com.

Buiness Picture of Roy Giordano   Click here for a Free Listing Book Account        
 Roy Giordano     
Broker Associate  -  RE/
MAX Central

Mobile: 732-213-2438 | E-Mail: royrealtor@yahoo.com | Visit my website

If you know someone who wants to buy or sell a home, please call me. View all of my real estate blogs

The greatest compliment I receive is when my family, friends, and customers refer me to others..

Roy Giordano, Marlboro Manalapan Realtor, Old Bridge, Freehold NJ   Find me on Face Book           Roy Giordano, Marlboro Manalapan Realtor on Twitter Follow me on Twitter                REMAX Manalapan Marlboro Realtor, Old Bridge, Freehold New Jersey

Comment balloon 0 commentsRoy Giordano - Top Real Estate Expert • November 26 2009 11:27PM
Marlboro NJ Homes. Is remodeling your home worth it during a down…
share
Marlboro Homes, Remodeling - Roy Giordano I'd like to share this blog I found on ActiveRain. It was written by a Realtor from Cal. and he makes some excellent points. I hope this proves helpful. I get asked this… more
Marlboro, Manalapan Homes - Fast Ways To Remodel Your Kitchen
share
Fast ways to remodel your kitchen. Fast Ways to Remodel Your Kitchen, and increase the value of your home. While there are many different variables that contribute to selling a home, during the course of my real… more
Marlboro Homes for Rent
share
Homes For Rent in Marlboro, New Jersey ( edit / delete ) Roy Giordano Just Listed. Executive Home for rent in Marlboro New Jersey Marlboro Home For Rent Executive home for rent in Marlboro NJ. A unique opportunity… more
Top 5 Reasons to List Your Home During the Holidays
share
Marlboro Homes. Roy Giordano helping sellers in Marlboro sell their homes. I'd like to share this article I found on the ActiveRain Site. This article was written by a Realtor in Colorado Springs and applies to all who want or need to… more
Homes For Rent in Marlboro, New Jersey
share
Roy Giordano Just Listed. Executive Home for rent in Marlboro New Jersey Marlboro Home For Rent Executive home for rent in Marlboro NJ. A unique opportunity to lease a custom luxury home boasting 8000 sq. feet in desirable… more
Marlboro Homes, To Remodel or not to Remodel
share
Marlboro Homes, to Remodel or not to Remodel - Roy Giordano Roy Giordano -- November 2009 -- Marlboro Homes, to Remodel or not to Remodel Bathrooms: To Remodel or Not To… more
Hiring a Professional Home Staging Consultant
share
Roy Giordano - Stagging for Homes in Marlboro. I found this blog written by a Professional Home Staging consultant and wanted to share it with you. It helps to explain the real meaning of professional home staging. I hope you find this… more
Marlboro Homes, to Remodel or not to Remodel - Roy Giordano
share
Roy Giordano Home Essentials -- November 2009 -- Marlboro Homes, to Remodel or not to Remodel Bathrooms: To Remodel or Not To Remodel It's no secret that bathrooms are a popular… more
Renovation Loans in Marlboro, Manalapan New Jersey,
share
Hi, I found this blog written by a Realtor in Florida. The same guidelines apply for NJ residents. if you would like more information on renovation loans contact Roy Giordano I hope you find this information helpful. … more
Real Estate and community information for Marlboro, New Jersey
share
Roy Giordano ReaL Estate and community information for Marlboro New Jersey Would you like to know what your neighbors home sold for? Interested of knowing the average net worth of the people in your town? Now you can receive free market… more