Just before my neighbor placed her house on the market last Spring, she had a contractor come in to make several updates. Among the items replaced were her worn down kitchen counter, an aged light fixture, and a section of torn carpeting. Lastly, she had her construction guy update her laundry room.

The laundry room part surprised me as I never would have considered this part of the house to be all that important for the potential buyer. I was soon proven wrong when the house sold within a week, my neighbor boasting that the updated laundry was the clincher.

Making Improvements To Sell Your Home

Well, it turns out that a laundry area is important for some people particularly for the new owner who has four children and uses that room a lot. My former neighbor, Betty, didn’t have to gut the laundry to make it presentable, but she make several updates which helped her cause:

Cabinet Refacing or Painting — Betty’s home was built in the early 1970s, but the laundry room was updated once before her contractor got to it. Still, the twenty year old cabinets needed sprucing up, leaving my neighbor with a choice: paint or reface? She chose to paint.

New Tile Flooring – Broken tile thanks to damage from the washer and dryer meant that new flooring had to be put down. With wood floors underneath, Betty could have had everything stripped down but she chose to add fresh laminate to protect the wood and add some extra sparkle.

Wall Improvement — Other than having a side shelf installed to hold those items which wouldn’t fit into the cabinets, Betty chose to have the walls repainted. She chose eggshell white which goes well with her floors and shelving.

Lighting — I like recessed lighting, but my neighbor chose to keep the existing fluorescent lighting in place, simply to limit all of our repairs to under $5000. My new neighbors have since installed the recessed lights which are bright without causing strain on the eyes.

Odds ‘n Ends — There are no windows in this laundry room, so shades, blinds or curtains aren’t needed. Betty’s old stereo system still pumps music into the room, providing a momentary escape while doing household chores. If a laundry is big enough, a chair to relax might nice provided that the ventilation in the room is adequate enough to remove bleach fumes and a soapy smell.

Should You Make Changes Or Not?

Prior to her speaking with a realtor about listing her home, my neighbor hadn’t planned to make too many updates to the home. However, with a few glaring deficiencies present and a tight housing market to contend with, Betty went ahead with the work and was able to sell her home quickly and at full price. Not every home improvement project needs to be handled in advance of placing a home on the market, but in this case one did and succeeded.

Tags: home buy, home sell, housing contractor, laundry room

The house that you bought three, five, or even ten years or more ago was the perfect home for your needs at that time. Fast forward to today and the way that you live has changed, so much so that your current living arrangement is cramped or out of date.

Should you sell your home or should you opt for a renovation? Not an easy question to answer, but one that can be answered by asking yourself several lead up questions. There aren’t any right answers, but the way that you answer each question and the weight that you give to each will. Let’s take a look at several questions you may want to ask yourself:

What are the property values in your neighborhood? Are they going up, down, or are they staying flat? If you’re in a market where prices are falling, selling now could mean that you might lose some money unless the home that you are considering buying has also dropped in price. Pay close attention to real estate agent comps!

Where is the new home located? The further the new home is away from your current residence, the greater your expenses of moving will be, never mind the hassles related to making any move. If you’re staying in the neighborhood, your costs will be limited mostly to moving charges and closing costs, but if you leave your zip code your moving costs will increase, your kids may need to switch schools, your car and homeowners insurance rates could change, etc.

Would your home benefit from a renovation, particularly an expansion? If you need an extra room and a bath, your newer home won’t be much larger than the home you previously had. However, if you’re considering an entire addition that will add 50% more living space to your home, how will your newly renovated home compare with homes in the neighborhood? Homes that dwarf the size of houses on the same street rarely return their full investment.

Will your needs be met regardless of the choice made? Will renovating your current home or moving to a new one resolve your living space needs for the long term? If you’re simply looking at getting an extra room for your teenager, renovating attic space may be the most cost effective renovation chosen. If you’re family is still growing, a new home could be the better choice.

Of course, other factors should be considered when making any change:

• Is your job stable?
• Will you need to make another change within the next few years?
• Do you like your current neighborhood?
• Can you do some of the remodeling yourself?
• If you choose to move, will you rent a truck and move everything yourself?

Finally, map out the amount of living space you will need over the next five years and compare renovating your current home to buying a larger home. Whether you choose to renovate or sell, having all of the information in front of you is the best way to make a sound decision.

Tags: home buy, home expansion, Home Improvement, home renovation, home sell

Earlier this month SayEducate explored the growing trend where buyers are choosing foreclosed homes as one way to enter the housing market or to get a second home for investment purposes. In, Foreclosures: Wise Investment or Money Pit? we examined the pitfalls and positives related to this type of financial decision making, taking care to emphasize the risks involved.

Since we posted the article, we’ve uncovered a handful of auctions being held around the country to dispose of foreclosed property. This weekend, one auction house hopes to see 200 homes sell and is hosting back to back auctions in Dallas and Houston to give buyers an opportunity to buy discounted houses.

It isn’t our policy to endorse or give out details about specific home auctions, but our gut reaction to them is for you to perform due diligence before placing a bid. Specifically, by visiting the property in person and doing a thorough inspection, these steps will reveal whether the house is worth buying or not.

Of the few home auction websites we’ve visited, there seems to be plenty of information available to you including:

The licensure information — Real estate agents and brokers must be licensed and auctioneers must have a state license too. People associated with the selling of a home via auction should be willing to disclose their credentials. If not, then don’t place a bid.

Open houses — Every property being sold should be visited, therefore find out when open houses are held. Some homes are available by appointment only; if you cannot gain access, then don’t place a bid.

Financing — Some companies have a financing department available or affiliated lenders who will pre-approve your mortgage. Unless you’re paying cash for the property, you’ll be expected to put about 5% down and be able to come up with the rest of the money by closing, which is usually 30-45 days out. Please note that many auction companies will tack on a fee, usually 5%, on top of your final price as a buyer’s premium.

Of course, you’ll want to understand what other fees are your responsibility (e.g., title costs, attorney charges, liens, taxes, etc.)  before proceeding and what other paperwork you must handle. If you find a home you like and you have a bid you’re ready to offer, then attend the auction for your chance to buy a foreclosed home.

The present housing market has driven down prices while driving up foreclosures, making 2008 an excellent time to buy. Perform due diligence and you could come away with a bargain.

Tags: auction, foreclosure, home auction, home buy, home sell, home title, liens, mortgage, Property Taxes, taxes