2011 Home Improvements Will Make All the Difference in 2012

Americans are dour about the economic prospects for 2012 -- their own, and the country's.  They expect to save less and stay stuck in debt, according to the latest Harris Interactive poll.

One sign of the times: only 11% of homeowners say they will re-invest in their homes through value-building home improvements.

That means that you have a major selling advantage if your house is recently improved, so work it! 

• If you improved in 2010 or 2011, put those dates in your listing headlines and  description -- you'll stand out from others using fudge terms like 'recently updated'
• Be specific with brand names -- Kohler, Viking, KitchenAid, GE, Pergo -- that are shorthand for quality
• Lead with photos of your nearly new improvements, and take several photos from different angles, of the improved rooms. Include close-ups.

For five more tactics that will keep you ahead of the 2012 housing market, plus ways to tame a post-holiday credit hangover, visit the ForSaleByOwner Education section.

Most Bang for Your Buck

What minor improvements pay back biggest when you are preparing your house for market?

HomeGain has figured it out. 

• Cleaning and de-cluttering – Costs: $290; Average value added: $1,990  
• Lightening and brightening – Costs: $375; Average value added: $1,550  
• Home staging – Costs: $550; Average value added: $2,194  
• Landscaping – Costs: $540; Average value added: $1,932  
• Repairing electrical or plumbing – Costs: $535; Average value added: $1,505  

If your house needs even more work, these projects are more costly, but you will probably recoup the expense – while attracting an offer. 

• Updating electrical systems and/or plumbing 
• Updating the kitchen and bathrooms 
• Replacing or shampooing carpets 
• Painting interior walls 
• Repairing damaged floors 
• Painting the outside of the home

 

Image courtesy of Morguefile contributor duboix.

 

Fixed: Remodeling Market Starts To Recover

This just in from the Joint Center for Housing Studies of Harvard University: Remodeling is about to rebound. 


In its annual deep dive into the world of hammers, tile and new appliances, the researchers  reported that though remodeling expenditures have dropped 12% from the 2007 peak, a new trend is taking hold.  Homeowners are still pacing remodeling expenses closely with home value, but are starting to spend a little more on projects that maintain value.

That means: 

• Spending on  maintenance, especially exterior projects, from kitchen and bath remodeling
• Homeowners in major metropolitan areas outspent homeowners in small markets
• Homeowners in pricey markets continue to spend on their houses
• Older homeowners, who are more likely to have substantial equity, cut back on remodeling least

Still, remodeling faces stiff headwinds. Lenders have trimmed home equity lines of credit because home values are declining. (Nationally, homeowner equity has plummeted 40.4% from 2007 to 2010.) Unemployment is still high, and rising taxes are canceling the small raises won by those who are employed.

Here’s what this means for you – the homeowner who has been circling potential improvement or maintenance projects:

• Contractors who survived the downturn have the best and most talented tradesman and subcontractors. Insist on the most qualified, innovative designers and tradespeople for your project.
• Think curb appeal. If all your neighbors are keeping their houses’ exteriors looking great, don’t spend on hidden assets like  a fancy bathroom in the hopes that eventual buyers will see past your scruffy front entry and crumbling roof.
• Iffy financing trends mean that potential buyers will be worried about monthly carrying costs. When you upgrade or replace your heating and cooling systems, windows, doors, roof, and appliances, document the energy savings so you can show eventual buyers the exact monthly utility costs of the house.

Image courtesy of Morguefile user ppdigital.