Home improvements are a great
investment. Whether you plan to sell
your home now or spend the next 10 years living in it, you can enjoy, on
average, an 80% return on any home repairs or upgrades. Since March 2007, there has been a 20% decline
in home values. Prospective home sellers
might ask: should I do major home
improvements? The answer is: it depends. Before deciding, consider: when do I need to sell my home; what home repairs
are needed; and how do I find a
contractor?
What home
repairs must I do first?
A failed home
inspection means that you must find a contractor and make certain home repairs
immediately. Follow-up with minor home
improvements such as increasing curb appeal, painting walls and ensuring that
doors open and close freely. Next,
determine if you can sell your home near your asking price and in “as-is”
condition. If not, decide if you have at
least 6 months to complete an optional, major home improvement project. A local, licensed real estate broker can review
your home and provide information on your local housing market.
Major
upgrades might be worth the risk.
The return on investment
of major home repairs can be rewarding.
Kitchen and bathroom renovations, for example, can generate a 2:1
payback on investment. Plus, renovated homes
are more attractive to potential buyers.
The right home improvements can greatly reduce the time your home spends
on the market. Home values are still,
however, in decline. Spending money to
remodel a $300,000 home that loses 5% of its value during the renovation
project, for example, might be counterproductive.
How do
you find the right home improvement
professional? You can find a
contractor by first asking for recommendations from people you know and trust –
your family, friends or neighbors. They
can rate contractors they have used
in the past, which minimizes your potential for contractor complaints. Another way to find a home improvement
professional is to search for sources which rate contractors and provide
homeowner feedback. Some homeowners use free
“service companies” to find a contractor – with mixed results. These companies sell your contact info and
home improvement details to “pre-screened” contractors. This does not, however, always eliminate contractor
complaints. In a tightening economy, some
companies cut corners by loosening their pre-screening standards. One such company asks homeowners to rate
contractors, publishes the feedback (including contractor complaints), but
continues to sell your information to questionable contractors.
Other homeowners use “information
brokers”, who ask their “members” to rate contractors. They then sell the feedback to homeowners. Obviously, purchasing anonymous information from
restricted websites has drawbacks. Look instead
for openly posted contractor complaints and feedback, like those found in a home contractor directory. Since the information is accessible to everyone,
it allows more follow-up comments and greater validation. This result provides the best snapshot of a home
improvement professional.
You may
ask: what is a Home Contractor Directory
? More and more homeowners are using a home
contractor directory to find a contractor.
This specialized directory gives you the ability to find a contractor
that is right for your home repair
project. You can peruse advertisements, rate contractors, check and
feedback, read related news, articles and gain advice - all free of charge. After your project is completed, be sure to rate
contractors that performed your work.
The information you provide will help other homeowners make the right
choice for their home repair projects.