Redo to recoup

It's impossible to watch a home improvements show that does not remind viewers that baths and kitchens sell houses. But in today's economy, it's probably better to take those bath and kitchen improvement tips from shows designed to get the biggest return on the dollar.

Conventional wisdom used to say investing big bucks in a house's kitchen and baths would yield big returns when selling. In today's tight economy, however, the rules are not so hard and fast.

How much to improve any part of a house depends on many things, including the owner's circumstances.

Some owners must sell quickly because they are taking a job elsewhere. Other owners have lived in their homes for many years and are selling to downsize.

Still, other owners plan to sell in a year or two but want to make improvements they can enjoy in the meantime.

Pam Bishop with Carolina One Realty Real Estate says before deciding to make improvements on a home, the owner should have a home inspection done. Home inspectors can tell an owner if the house has electrical, plumbing, structural or other issues that should be dealt with first.

Afterward, he should call a real estate agent to walk through the house and make suggestions on improvements based on two main considerations.

One is what it will take to sell the house. And another is the amount of financial return they are expecting the improvements to bring.

Bishop says agents don't charge for that service.

Leaving soon?

Owners, such as those moving for careers, may need to sell quickly and at least break even, experts say. They also may feel a bit overwhelmed at the improvements they think are needed.

"A lot of things you would have had to do in the past don't seem to be getting that attention today," says Mark Kearns of Kearns & Associates Appraisal Company. Increasingly, the improvements being made are designed to keep the home in competition with others in the neighborhood, not to make them standouts.

"If you walk into a house and it screams 1980s, you need to change it," Kearns says. "Or if you have a harvest gold bathtub or blue tiles, you need to change those. Get new faucets, change out the light and the mirror. If you have dated laminate counters and kitchen appliances, you should change them."

How you change them and what you put in their places, depends.

The appraiser says that in some areas, you may have to buy a new tub, but in others, you could reglaze the existing one in a more appealing color. If all baths in a house need work, put more money into the one in the master suite.

"I have been doing this for 34 years and I can't put an exact price on how much some change will increase the value," Kearns says. "Buyers have choices, plenty of choices. So they are not buying houses that need updating except at discounted prices."

Downsizing?

Some owners who have built up equity in their homes want to downsize and make a lifestyle change.

Those who can afford to sell in this market still need to proceed cautiously, says Phillip Ford, executive vice president of the Charleston Trident Home Builders Association. "They must think of how much they would get back. If sellers cannot recoup what they spend, it does not make sense to do the improvements."

Along those lines, Barbara Harper of Agent-Owned Realty says such owners should not necessarily use the most expensive paint or install the most expensive carpeting when readying their homes for sale. But there are some things they neglect to do.

Those who have lived in their homes for a while may need to declutter to make them look larger. Many people may live with leaky faucets, rotten wood and other signs of deferred maintenance that a buyer will find unacceptable. It also is important for them to make the landscaping look as good as possible to improve the curb appeal.

Like Ford, she cautions to keep a close eye on expenditures, because the improvements may make a home sell more quickly, but owners are not likely to recoup all they spend.

Staying for a while?

In today's economic climate, many owners fix up their homes and stay put for a while, says Harper. She often tells owners that this is not a good time to sell. She also cautions those remaining who follow that advice not to go overboard with the improvements.

"Styles change, and five years from now people might not want granite countertops anymore. Stainless steel is the big thing right now in kitchen appliances, but that can easily change in six months.

"Do what you want and can afford but don't overdo it. If you put too much into the house so that it prices out of the neighborhood, you have done the wrong thing."

Reach Wevonneda Minis at 937-5705.