Now, What About the Inside?

Congratulations!  You have passed the "curb appeal" test and gotten buyers in the door.  What comes next?  Make sure the interior looks as good as the exterior. 

Some interior improvements will push all the right emotional buttons in prospective purchasers - and others can be "deal breakers."  Avoid obvious deal breakers by ensuring that all rooms meet these minimum standards:

• Make sure all plumbing and electrical systems are in working order;
• Repair any cracks in the walls or sheetrock;
• Paint — a fresh coat of paint throughout the house will more than pay for itself;
  • When you paint, stick to neutral colors like white or off-white. Everything will look newer, cleaner and brighter.
  • And make sure you to paint everything, like inside the closets, cabinets and pantries.  If a prospective buyer opens a door and sees dirty walls or shelves, you've just squandered the advantage you had achieved by painting in the first place.
• Remove any torn or discolored wallpaper;
  • Wallpaper, like wall colors, makes a personal statement about the owner's tastes. And in most cases it is best to remove it entirely.  Buyers want to visualize what they would do with your house, and wallpaper gets in the way of their dreaming.
• Install new floor coverings - or at least make sure yours look new;
  • Like paint, new carpeting should also be in a neutral shade. This will help buyers visualize their furniture in their possible new home.
• Replace missing interior trim, baseboard or moulding;
• Replace cracked or broken windows;
• Make sure window and door hardware match;
• Install new light fixtures;
• Make sure all switch and outlet plates match from room to room;
• Many buyers value good wood floors, so sand and refinish yours if they need to be restored. Otherwise, you might consider new flooring.
• Finally, if your home is short on storage space, consider how you can add shelving, cabinets or other storage systems to remedy this inadequacy.

Each of the above improvements may seem overwhelming. But you'll find that the cumulative effect of fixing even relatively minor problems will be dramatic. A crack in the wall, a carpet stain or a light switch that doesn't work can send a negative signal that results in the loss of a buyer. We have all seen it happen.

Let's take a closer look at improvements on a room-by-room basis, starting with your two most important rooms - kitchens and bathrooms.  Kitchens and bathrooms have long been the top two remodeling projects, and you can expect them to remain so for years to come. They are the rooms that most consistently make or break a sale.

Kitchen's are almost never "too new."  But if you can get away with a minor kitchen remodel rather than a wholesale kitchen replacement, do it.  Because the kitchen is so important, sellers sometimes over-improve them, with no chance of recouping their investment.  Don't fall into this trap. Add a new coat of paint, refinish the cabinets and replace the counters, change drawer handles, install new appliances, even put down a new floor—but don't gut it and start over it if isn't necessary. When adding new appliances, be aware that many buyers consider brand name to be an important factor.

Don't have the time or energy for a kitchen remodel? At least repaint the ceiling bright white.  You'd be surprised how much it can lighten up the room. (Another great way to brighten a kitchen is to add a skylight or a new window and you may be pleasantly surprised at the cost of adding one).

If you do choose to put in a new kitchen, keep in mind what helps sell homes. Buyers are looking for lots of cabinets and counter space, new appliances, and an easy flow between the sink, food prep areas, stove and refrigerator. Think sunny, spacious and clean.

Like kitchens, bathrooms must show their "best" to attract prospective buyers.  But, here too, it is usually better to remodel than replace.  New light fixtures, counter tops and and flooring can make a huge difference.  Replacing outdated wall or floor tiles are usually good improvements as well.  And If the bathtub is in poor shape you should replace it.  But a less expensive option may be to re-enamel it.  And if you keep the old tub, do not forget to re-grout and re-caulk it.  A good bathroom remodel or expansion can easily return more than 100% of its cost when you sell the property.

If you're feeling ambitious, adding a half-bath or second bath to a one-bathroom house is another option.  Whatever the family size, one bathroom is almost never adequate and can have a significant impact on marketability.

Bedrooms

 For most people, the master bedroom is the third most important room in the house. If you have a large home with four or five small bedrooms and the floor plan allows for it, you might consider combining two rooms into a master bedroom. If you have a two - or three- bedroom home and a decent-sized lot, you might consider adding another bedroom.

A recent remodeling trend is the 'great room' - combining the kitchen, dining and family room into one larger living area. This reflects a trend in new construction towards more open, free-flowing floor plans.  While still not as prevalent as kitchen and bath remodels, it is definitely worth considering.  Separate living rooms, family rooms and formal dining rooms, on the other hand, are decreasing in popularity.

Another popular concept in renovations is the home office. With more home-based businesses and telecommutes, many people are looking for office-ready space in their homes.  A recent survey conducted by Builder magazine found that nearly one third of buyers in their 20's, 30's and 40's plan to use a room as a home office.

Other common renovations include exercise and media rooms, fireplace additions and installation of a security system. You can find professionals who will argue for and against all of these projects. Some are relatively inexpensive and will easily pay for themselves. And with some projects, you may not recoup your investment but you will have removed obstacles of the sale.  Consult your Realtor before making any additions or improvements if the goal is the sell your home.

BUT REMEMBER:  If you don't take care of things like leaky plumbing, drafty windows or outdated light fixtures, you're giving a buyer ammunition to use against you during negotiations.

Not all improvements will add value to your home.  And there are several things you can do that can actually lower the value of your home or make it more difficult to sell. Here are a few rules to keep in mind:

You may be intrigued to do the work yourself to save money. That is a fine option if you know you can do a great job.  But if doing it yourself means a careless paint job or imperfections in the vinyl flooring, hire an expert.  Hiring a professional will almost always be less expensive and quicker in the long run. This is especially important when making changes to major mechanical systems like the plumbing and electricity.

Any project that raises your home's value by more than 20% above similar homes in your neighborhood should be reconsidered.  The reason is simple. Say your home is in a typical neighborhood of $150,000 homes, and you make $50,000 in improvements. Buyers looking for a $200,000 home are looking in neighborhoods where that is the norm, not the exception.

You probably won't recoup your investment if you plan to move in less than two years. If you plan to move sooner, spend less money and focus your efforts on the most extreme problems. For example, turn a bad kitchen into a decent one rather than a gourmet's delight.

Sure, you may like built-in bookcases on every wall of your guest room, but prospective buyers will probably view them as a nuisance to tear out — which means they'll be less willing to meet your price. Also, avoid improvements that make unusual use of a particular room. Anything that limits flexibility will limit interest in your home.

Make sure your floor plan will make sense when you're done. Be careful not to make changes that impede the natural flow of the house - closing off halls, doorways, etc.  Room additions, in particular, are often done very poorly. If it looks like something was tacked on to the original house, don't do it.  Adding a bedroom where the only connection to the rest of the house is through another bedroom should also be avoided. 

Maximizing your home ownership investment can be a fairly involved process. But when you consider the end result — a quicker sale and top dollar for your effort — we think you'll find that a few well-chosen improvements are worth both the time and the effort.