Publication Date: Friday Nov 14, 1997

Changes that pay

If you're planning to sell your home in the next few years, you may be wondering what preparations will give you the most bang for your buck.

A report in Remodeling Magazine estimates that you can recoup 89 percent of costs for an additional bathroom, 85 percent of a major kitchen remodeling and 71 percent of the cost of a new deck.

Does this mean that major renovations don't pay? Not necessarily.

What it does mean is that many other investments may have higher payoffs. Decorating and aesthetic improvements are some of the cheapest ways to sell a property, and more detailed information about a home may make it more attractive to potential buyers.

There are a number of strategies for maximizing the salability, and the price, of your home. These range from minor paint jobs to full-blown remodeling, all designed to make a great first impression.

For those in the business of selling homes, "curb appeal" is a crucial consideration.

"A first impression is critical to a buyer," said Barbara Tyler, Coldwell Banker's No. 1 Realtor internationally. "The buyer will make a buying decision, in my opinion, within three to five minutes of being in the home. They start with their instincts and emotional reaction to house. Rarely will a buyer come back and buy it based on more intellectual grounds."

"Take care of basic gardening," said Kit Davey, a Redwood City interior designer who specializes in helping people prepare their homes for sale. "Lop off branches that block the view to the street, add 'real estate flowers' (little bursts of color near the front door), and fertilize or resod your lawn."

Also outdoors, if your mailbox is listing to one side, touch it up or replace it. Update the numerals on the front of your house and replace a garage door that is warped or a front door if it has outdated amber "coke-bottle-bottom" windows.

Painting the outside of your house may get the highest return on your investment of any home-preparation activity. Again, paint in a neutral color--beige or light gray with white trim. Paint the front door in a warm color such as forest green or deep blue, a color that encourages potential buyers to think of your house as home.

Tyler, who is based in Menlo Park, has given lectures on preparing a home for sale. She believes investing in professional inspections of your home also yields high returns.

"The laws are now very specific in the area of seller disclosure," Tyler said. "Inspection reports are very helpful to sellers who haven't sold in a long time, because it helps to jog memories--have you had new circuit breakers, and so forth."

She insists that a termite inspection is a must as a basic disclosure document. If the home is not a tear-down house, then a seller would have a general contractor's inspection report, as well. Homeowners in Portola Valley and Woodside are wise to get a septic report.

"Because most swimming pool owners don't service their own pool, they rely heavily on pool service people to apprise them of problems," Tyler said. "As a way to have a seller be more informed, it's wise to get a pool inspection."

If a roof is near the end of its life, a roof inspection is advisable. Tar and gravel roofs last eight to 15 years, whereas a shake roof will last 20 to 30 years depending on shade, trees and maintenance.

According to Tyler, "Often a seller thinks a roof is fine because it's not leaking, but buyers will become concerned about paying for a new roof. It's better to be able to say, 'My roof has three years left,' and then adjust the price accordingly."

After your home has been poked and prodded by a variety of inspectors, it still may not be ready to put on the market.

"There are lots of variables in deciding whether or not to invest money in your home," said Davey. "Compare your home to others in the neighborhood--someone with the most run-down house may get most bang for his buck. Where is your home? How are your neighborhood and school district? What's happening in the market? These are all questions to ask."

If your house already is one of the most expensive in the neighborhood, you're less likely to get your money out of a remodeling project. A home can actually be overly improved for your area. A better real estate investment may be improving the worst home in an area, one with lots of room for improvement and for cashing in on simple updating projects.

Davey has lots of suggestions for preparing and "staging" your home for sale.

"You have to think about changes you're going to make relative to the rest of the house; if you haven't done anything to the rest of the house, the kitchen remodel will be just thrown away. If the workmanship of changes you make isn't high quality, you're probably doing damage to your home's resale value."

Her biggest tip for readying your home for sale?

"The word is 'neutral.'"

This means painting the interior off-white. "I like Kelly Moore Western Acoustic," Davey advises. "Depending on feel of the house, you might leave the wood unpainted. But if it's a rancher from the 1950s to the 1970s, paint all the doors and paneling. Also, remove any unusual wallpaper, or paint over it."

If you have hardwood floors under your carpets, lift up the carpet. It may pay to refinish hardwood floors or to recarpet "in real estate off-white," said Davey. She suggests painting over exotic or strange tile in entryway or carpeting right over it. "Your goal is to take away objections," she observed.

Davey and Tyler agree that updates in kitchens and bathrooms are often wiser than major improvements or remodels. Paint dark cabinets white, change hardware to simple brass or plastic pulls. Garish or worn linoleum should be replaced or painted over (although Davey cautions that this is a complex process).

Davey also suggests "reporcelainizing" the appliances in the kitchen. Have an avocado green oven and dishwasher?

"The fronts can be taken off and Porcelain Patch and Glaze in Oakland will bake on new porcelain in white," Davey said.

In bathrooms, Tyler says, "you get the highest return from the aesthetic impact of a room. So even if tile and fixtures are old, a room can be improved by plush towels, a new shower curtain and rug, dried flowers and pretty soaps. You get a lot of positive emotional impact, and you can take these things with you, so you haven't lost anything."

She also advises homeowners to take out dated medicine cabinets, and to put in a large piece of mirror with new, contemporary light fixtures.

If appliances are really worn, Davey insists that it is cost-effective to reglaze sinks and paint over counter tops--a service performed by Bathtech and Miracle Method--and that old toilets can be inexpensively replaced at Home Depot.

"Don't put area rugs in the bathroom, toilet warmers or those little rugs that wrap around the bowl," urged Davey. "They make a bathroom look smaller."

In fact, both women list reducing clutter as a high priority in every room.

"Declutter, remove personal items, political items, religious items, animal skins," said Davey. "Each room should say what it is--a room shouldn't contain a couch, an exercise bicycle and crib. A few personal touches are nice--maybe a throw blanket across a chair, with a pretty stack of books and a teacup on top. In kids' rooms, declutter, but keep out a couple of the cutest stuffed animals. Help people imagine themselves in the space, so it tells a story."

Tyler adds, "The master bedroom is going to be very important. Get new linens, fluffy pillows, and diminish bedroom clutter. If you have old plants that are very straggly, get rid of them and buy new, fresh plants. Ivy or soft plants by the bed stand are nice."

Because of the current market, Davey notes that homeowners needn't do too much to prepare a home for sale. "If there were a sudden glut on the market, you'd have to do more. For now, you basically have to put your laundry away." 

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