Home Seller Tips February 5, 2024

Remodeling Projects to Avoid When Selling Your Home

 

It’s common for homeowners to feel compelled to remodel their homes before they sell. Renovating the spaces in your home can increase its value and help you compete with comparable listings in your area. However, some remodeling projects are more beneficial than others as you prepare to sell your home. Always talk to your agent to determine which projects are most appealing to buyers in your area.

When preparing to sell your home, you want to strike the right balance of upgrades. Making repairs and executing renovations will attract buyer interest, but you don’t want to dump so much cash into remodeling that you won’t be able to recoup those expenses when your home sells.

So, how do you know where to focus your efforts? Your agent is a vital resource in understanding your specific situation and will offer guidance on your remodeling efforts to sell your home for the best price. Here are a few projects sellers will want to keep off their to-do lists for the best return on investment…

 

Major, Pricey Upgrades with Long Timelines

For any remodeling project, your agent’s analysis will be key to helping you determine its risk/reward potential. This dynamic is especially important for big remodels and home upgrades, due to their higher costs. The latest Remodeling Cost vs. Value Report (www.costvsvalue.com)1 data for the Seattle area shows a generally negative return on investment for major, upscale remodeling projects—they only recouped about 25%-30% of their cost…

Cost vs. Value for Remodeling Projects in Seattle

These projects come with hefty price tags and longer timelines than minor repairs and upgrades, which can complicate factors as you prepare to sell, especially if you have a deadline to get into your new home. They have the potential to temporarily displace you from the property, meaning you and your household may have to find somewhere else to stay until the project is complete.

The Bottom Line: To go through with a major home upgrade before you sell, its schedule must fit with your moving timeline. It should also align with buyer interest in your local market. If the project doesn’t meet these criteria, it should be avoided.

 

Non-Permitted Projects & Building Code Violations

Before you decide to finish out the basement or make changes to your home’s wiring/structure/mechanical systems, it is important to make sure you obtain the proper city, county and/or state permits + inspections. Non-permitted square footage does not reflect on the county tax record and can lead to low appraisals when the buyer tries to get a loan. Obtaining permits also helps ensure your alterations meet the current building code—otherwise, you may face legal exposure should they create a safety hazard. Furthermore, any non-permitted remodels must be disclosed to the buyer on your Form 17 if you live in Washington State. The buyer’s mortgage lender may also have stipulations saying that the loan may not be used to purchase a home with certain features that aren’t up to code, which could lead to them backing out of the deal.

If you’re selling an older home, you’re not obligated to update every feature that may be out of code to fit modern standards. These projects are often structural and require a significant investment. If the violation in question was built to code according to the regulations at the time, then a grandfather clause typically applies. However, you’ll need to disclose these features to the buyer.

 

Trendy Makeovers and Upgrades

Lastly, it’s best to avoid remodeling projects that target a specific trend in home design. Trends come and go. Timeless design is a hallmark of marketable homes because it appeals to the widest possible pool of buyers. Keep this in mind when staging your home as well. Creating an environment that’s universally appealing and depersonalized allows buyers to more easily imagine the home as their own.

 


 

Windermere Mercer Island

 

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We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
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© Copyright 2024, Windermere Real Estate/Mercer Island.

1©2023 Zonda Media, a Delaware corporation. Complete data from the 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Adapted from an article that originally appeared on the Windermere Blog, written by: Sandy Dodge.

 

Home Seller Tips March 8, 2022

Should You Remodel or Sell Your Home As Is?

Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.

 

Should I Remodel or Sell My Home As Is?

To answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.

 

Cost Analysis: Home Remodel vs. Selling Your Home As Is

Home Remodel

When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.

Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.

According to the Remodeling 2023 Cost vs. Value Report for Seattle (www.costvsvalue.com1), on average, Seattle-area homeowners paid $32,861 for a midrange bathroom remodel and $30,023 for a minor kitchen remodel, with a 54.4% and 73.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.

 

Cost vs. Value for Remodeling Projects in Seattle

 

Selling Your Home As Is

Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.

 

Market Conditions: Home Remodel vs. Selling Your Home As Is

Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.

In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.

 

Timing: Home Remodel vs. Selling Your Home As Is

Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.

For more information on how you can prepare to sell your home, connect with one of our local agents—we’re always happy to chat about your situation and offer advice.

 

1©2023 Zonda Media, a Delaware corporation. Complete data from the 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Adapted from an article that originally appeared on the Windermere blog January 10, 2022. Written by: Sandy Dodge.


 

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Find a Home | Sell Your Home | Property Research

Neighborhoods | Market Reports | Our Team

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com

© Copyright 2022, Windermere Real Estate/Mercer Island.

 

Living & Community March 2, 2021

The Four Phases of Remodeling

As with anything in life, a remodeling project can come with its ups and downs. Certain phases seem to go a mile a minute, while others feel like they’ve lasted a lifetime and a half, all while it looks as though nothing is being completed. Fear not—this is pretty typical. And, while every project is different, a good portion of renovations have four major phases, what I’m calling the Honeymoon, the Midproject Crisis, the Renewal of Vows and the Happily Ever After…

 

 

Phase 1: The Honeymoon Stage

 

After weeks of searching for a remodeler in your area, calling references and working toward an agreeable price, you say, “I do,” sign the contract, finalize the design and begin work in two weeks. There’s a little nervousness in the air, but as you enter the Honeymoon phase, the mood is mainly one of excitement.

 

Demolition Begins

Normally one of the quickest moving stages of a remodel, demolition makes it look as if a lot of work is being done practically overnight. Cabinetry is removed, walls are torn down, appliances are taken away and, in a matter of days or weeks (depending on the size of your project), you’re staring at a blank canvas.

After that, any necessary framing and structural work will begin. Framing usually isn’t as exciting or fast-paced as demolition, but still, there is visible progress almost daily. At this point, you and your partner are walking on air. The rate of work is astounding, and you’re still very excited (although maybe a little less nervous now) about the entire project.

 

Speed Bumps Ahead!

Like a delayed flight on a real honeymoon trip, there are obstacles that can slow down this phase, specifically during demo:

  • Discovery of toxic materials like lead or asbestos
  • Building permit delays
  • Unexpected structural elements (like pipes) revealed during demolition

Don’t panic. These delays happen often, and it’s worth accounting for and accepting these hurdles before you even begin to think about renovating.

 

Rolling With the Punches

Here are a few tips to help your honeymoon run more smoothly:

  • Embrace change. Really. Give change a huge hug. Get to know it on a personal level. Because no matter what room you’re touching (whether it’s the kitchen or a teensy guest bath), it’s likely that you use that room daily. The sooner you accept that this room (major or not) will be unavailable for a period of time, the sooner you’ll be able to adapt your daily routines to fit around it.
  • Love your microwave. This applies to kitchen remodels specifically. As soon as demo is done, your primary cooking and eating area will be gone. Before your project starts, find an untouched room in your home to create a mini kitchen that will include necessities such as a microwave, toaster oven and coffee pot. Think of it as the mini kitchen you had in your dorm or apartment in college and revel in the nostalgia.
  • Don’t worry too much. I know this sounds hard—OK, really hard, especially for control freaks like me—but trusting your building professionals to know what they’re doing (even if you do come across one of the aforementioned speed bumps) will really help you keep your head on straight. And if you do have questions or concerns…
  • Communicate! I cannot stress it enough. Talk with your contractor, talk with your
    significant other—talk, talk, talk. Ask questions, bring up budgetary concerns, muse over paint colors. Whatever is on your mind, getting it out of your head and into the air is beneficial for everyone involved (especially you).

 


 

Phase 2: The Midproject Crisis

 

Similar to a Midlife Crisis, the Midproject Crisis is full of sobering questions: What’s my contractor doing? Are we still moving forward as planned? Was this really all worth it? And of course: What is the meaning of life? Fear not: Progress is still occurring, even if it’s not as obvious as demolition was.

Typically, once demolition and framing is finished (the Honeymoon Phase) and before sheetrock is put up, mechanicals will begin. (This probably is referred to as “mechanical rough-in” or “mechanical rough” by your contractor.) Mechanicals refer to the guts of the house: electrical; plumbing; and heating, venting and air conditioning (HVAC). Like our own guts, most of the work done during mechanicals occurs behind the scenes:

  • Electrical: The groundwork for all new light fixtures, outlets, switches and appliances will be done during this phase. New wiring will be run in the walls and ceilings, electrical boxes will be installed for future fixtures, and electrical panels may be upgraded so they can handle heavier loads (this is especially prevalent in remodels where appliances are added). At this point, electricians are making sure that everything that will need power will have access to it and meet your municipality’s building code.
  • Plumbing: As with electrical, plumbing rough-in ensures that all plumbing fixtures, appliances and other water features will be supplied with water, gas (if your house uses natural gas) or both. So pipes may be moved or installed in new places, shower pans (the things that make sure the water stays in the shower) are installed and inspected, and gas lines may be moved, extended or even put in.
  • HVAC: Unlike electrical and plumbing, HVAC is the only mechanical where nearly all the work is completed during the rough-in stage. Pathways for new vents (for bath exhaust fans or kitchen vent hoods) are determined and vents are installed, air conditioning units may be replaced, and air return vents are located in appropriate positions.

More Bumps

It’s around this time that I’ve often seen homeowners concerned about progress. Yes, plumbers are there, but where are the new sinks? Why isn’t there a single light fixture installed yet? Is the HVAC guy even working, or is he just taking a nap in the attic?

The other contributing factor to the crisis is the fact that any speed bumps that crop up during this phase take a bit more time to resolve. Overall, the placement of existing framing is the biggest obstacle in mechanical rough-ins.

Another obstacle is the condition of existing mechanicals. Any wiring, plumbing or venting that is found to be damaged, dangerous or just not up to par with your municipality’s building code will likely need to be remedied.

If your job is permitted, inspections for mechanicals will occur during this stage. City building inspectors are well known for being thorough. If you don’t have everything just right (which ultimately is good, because they’re looking out for your safety), they will not hesitate to make your contractor fix the issue before any work can continue.

Communication is key to getting through the Midproject Crisis. I know it may be tempting to ask for advice from neighbors and friends, but in the end, the person with the most knowledge about your project is your building professional. See if you can get on your contractor’s schedule for a recurring biweekly meeting. It will help make the Midproject Crisis less of a crisis and more of an extended honeymoon.

 


 

Phase 3: The Renewal of Vows

 

Yay, you’re halfway there! After weeks (or months) of being in a state of disarray, everything you’d hoped and dreamed about is coming true and you’re feeling ready to say “I do” to your contractor all over again. This is what your contractor will probably refer to this as the “finish out” or “trim out” phase—finishing and beautifying what was started in the first couple of months. Here’s what happens:

  • Sheetrock. Holes made during rough-in will be patched, new Sheetrock will be put up at any new walls or ceilings, and texture will be applied to make your walls look like walls again.
  • Trim carpentry. There are a few different types of trim that may be installed at this phase: baseboard (which runs along the joint where the bottom of a wall meets the floor), door and window casing (which is installed around the perimeters of doors and windows) and crown molding (which is run along the joint where the top of a wall meets the ceiling). Trim is purely optional — some more contemporary designs forgo it entirely — but it is meant to create a finished, unified look.
  • Cabinetry. The installation of cabinetry is usually around the time when I see a little glimmer come back into a homeowner’s eyes. This is when the kitchen starts looking more like a kitchen, but it’s also when you can visualize how your other storage pieces, such as built-ins and bathroom cabinets, will change the function of your home.
  • Electrical and plumbing trim. This is the other big “wow” that comes with the finish-out phase. A master bathroom can start to look completed when tile and cabinetry is installed, but throw in a freestanding tub and a shower full of rain heads, handheld fixtures and a steam unit, and suddenly you’re not looking at a mostly done, unidentifiable space—you’re looking at your master bathroom. The same goes for electrical items like decorative light fixtures or appliances. Seeing new stainless steel (or whatever your preferred finish is) appliances being brought into and installed in your kitchen make most people go starry-eyed and drool a little. No judgment here—I’ve done the same.
  • HVAC trim. I mentioned in the last installment that most HVAC work is done during the rough-in stage, so what is left? Essentially, all that needs to be done is the installation of vent covers and thermostats and maybe a little tweaking of the air-conditioning system. Nothing too exciting, but it should be noted nonetheless.
  • Miscellaneous. Like I said, there is a lot that can be going on during the trim-out stage. Flooring—such as carpet, wood, tile or laminate—will be installed. (Flooring installers are known for insisting that they be the absolute last people to work on a house). Tile will go up in showers and as backsplashes. Countertops will go in. Priming and painting of walls, ceilings, trim and cabinetry will be completed. A little landscaping may even be done.

I’ve harped repeatedly about how communication is key, and this still rings true during the Renewal of Vows stage. But patience is also important.

As you see new things being carried in and installed, it can be so tempting to begin moving back into your new space or using your new kitchen. But your contractor may still need some time and space to work.

There are last-minute items that will ultimately guarantee your satisfaction that need to be taken care of before you and your family can begin enjoying your new remodel. So hang in there, and your patience will be rewarded.

 


 

Phase 4: Happily Ever After

 

During this Happily Ever After stage, finally, the work is done! At last, there are no more nail guns and saws and vacuums making noise in your house. After months of destruction and disarray, it’s time to move back in and enjoy your home, sweet home, for the rest of your days (or at least until you sell it or remodel again). And though most of this phase is just you at last having the chance to enjoy the fruit of your general contractor’s labor, there are a few odds and ends that your contractor will be taking care of to make sure your Happily Ever After really lasts forever:

  • Cleaning. This probably will happen before you move back into your home (or at least it should). Since day one of demolition, dust and debris have been thrown into the air and, much to your contractor’s chagrin, have crept into other places in the house that weren’t touched in the remodel. Now’s the time to do an all-inclusive clean. No, the cleaners won’t do your laundry for you, but they’ll do just about everything else, from polishing the floors to dusting the ceiling fans. The end-of-project clean is like a cleansing spa day for your home.
  • Final walk-through. The last walk-through ensures that you are completely satisfied with everything—and I mean everything—in your home. This is where you will have the chance to sit down and bring up all the odds and ends that you feel need to be addressed. This can be anything from “this faucet isn’t on straight” to “there’s a scratch on the new fridge” to “my shower isn’t draining correctly.” Contractors may vary on when they hold a final walk-through, but in my experience, it’s scheduled after the homeowners move back in and have a chance to use the new space. Your contractor should’ve caught just about everything during his or her own informal walk-throughs throughout the remodel, but sometimes there are items that just don’t come to the surface until a house is lived in.
  • Warranty begins. Most builders and remodelers have a warranty for their projects. The length and amount of coverage can vary, of course, but what remains constant is the promise to stand behind their work for any unforeseen circumstances that arise and need addressing. (Side note: If you’re looking at contractors right now, ask them about their warranty. This can be very telling of how they conduct their business. The more that contractors are willing to warrant their work—or the longer the warranty—the more effort they will put into getting the job done right the first time.) For some contractors, the warranty formally begins after the final walk-through is hosted and the last payment is received. After that, some will stand behind any light fixtures that fizzle, appliances that break, tiles that come loose—you name it. In an ideal world, everything would work right the first time, and it would work right forever. In our world, however, there are bad manufacturing batches and recalls and oversights that may need to be taken care of. Fear not. If you have selected the right remodeler, these issues will be handled.

What else is involved in the Happily Ever After? Absolutely nothing. Take a deep breath in, let it out, look around your new place and smile, knowing that it’s all yours, to have and to hold from this day forward, for better, for worse, for richer, for poorer, in sickness and in health, to love and to cherish till death do you part. You get the picture.

 

Should you move or remodel?

Will remodeling pay off when it’s time to sell?

 


©2021 Windermere Real Estate / Mercer Island. Adapted from an article series originally published on Windermere.com.