Cindy's Blog

Well, again I must apologize for the extremely long hiatus once again. This has been something of a weird and wild summer, and the heat just unbearable. However, I think now, as we wind down a bit (despite the heat!), the market does seem to strangely be picking up a bit, with more calls, more showings, more interest and generally more going on.

Despite the media reports about Freddie and Fannie bailouts, mortgage disasters, and the admitted rise in short sales and foreclosures, I would still argue that our market is considerably better than some. Yes, prices have definitely come down, but they are still not at rock bottom, and look, by most accounts, to be leveling off, if not necessarily picking up.

By and large most people who don't have their homes on the market aren't putting them on now until after Labor Day, so there is not too much out there on the market right now- certainly not much new.

If you are one of those people thinking that they might want to do something things to get your house in order, it's definitely not too late to get started! Just make sure that those things that you do that end up netting you the most money at the end of the day.

At the risk of repeating myself (perhaps more than once), the best place to put your money is always going to be in the kitchen and bathrooms. By and large, those are the things that sell a house. Now, having said that, if you have a teeny tiny kitchen, and you're in an are where people are putting on additions with the abandon that they seem to in our area, you may want to price accordingly, and not sink a ton of money into something you know people would perhaps want to take out.

If you're still pondering renovation options, here are a few projects that can give you a better return on your investment.

1. Replace Your Siding

Exterior siding topped the list in Remodeling magazine's 2007 Cost vs. Value report, which compared the construction costs of various projects to estimates of their resale value by members of the National Association of Realtors. Fiber-cement siding replacement came in at No. 1, with an estimated 88.1 percent of the cost recouped, while vinyl siding replacement had the third highest recoupment value at 83.2 percent.

While fiber cement siding is the most "valuable" (and able to hold its paint job for around 20 years!), in some neighborhoods, when vinyl is prevalent, you may not get the full return.

2. Build a Deck

Realtors in the Cost vs. Value survey estimated the average homeowner would recover 85.4 percent of the cost of a new wood deck from resale, giving this project the second highest value in the report. A composite deck addition -- a costlier initial investment -- was estimated to bring a 77.6 percent return.

Another valuable thing to consider here, is the square foot to square foot, you can add a deck for about 25% of what "finished" living area would be.

3. Spice Up the Kitchen

A minor kitchen renovation ranked fourth in the survey, but in the eyes of most agents and home buyers in "real life," this is the thing that really brings in the most "bang for the buck."

Rolling on a new paint color, installing new countertops and putting on new cabinet and drawer handles are three ideas that only take a little out of your pocket but make a big impact.

But if you have your heart set on a total kitchen overhaul at some point, it's probably not a terrific idea to sink a lot of money into "quick fixes". The same holds true if you have a small kitchen, for example, on a house that would be well suited to an addition. If you think most buyers are going to bump out the kitchen, update it so that it looks clean, new and nice, but don't go all out on the bells and whistles. While that may be appealing to a small group of buyers, many may be turned off because they would be paying for something that they didn't order and don't want.

4. Install Energy-Efficient Windows

Both wood and vinyl window replacements were each given about an 80 percent recoupment value in the Remodeling survey.

People are very energy-conscious right now. Especially with energy costs what they are, the cost of heating and cooling a home is definitely on the minds of most purchasers. It's not just the purchase price (that homebuyers consider), it's the cost per month to live in the home.

To ensure your new windows are of the best quality, you should look for the certification label of the American Architectural Manufacturers Association. For energy efficiency, the Energy Star label of the National Fenestration Rating Council is the gold standard.

Don't expect a quick return on your investment if you buy replacement windows, as they can run upward of $10,000 for the whole house. If lowering your utility bills is your goal, it's important to understand that it can take years for the savings to cover the cost of the windows. In most cases, though, you will see a drop in cost with your first bill, and it is a great sales tool!

5. Give the Bathroom a Facelift

Fixing up the bathroom, whether it's an upgrade or simply for maintenance, is another reliable investment. People like to pamper themselves, a nice new, clean bath helps them feel pampered.

A midrange bathroom remodel has an estimated 78 percent resale value, according to the Cost vs. Value report.

6. Crown Your Walls

Crown molding is near the top list of easy, inexpensive upgrades with big impacts.

It just really dresses up a room, and a good estimate for a do-it-yourselfer could outfit a room for less than $100.

Location, Location, Location

The value of any renovation project you choose depends a great deal on where you live and whether your home is in an entry-level or upscale market.