MORE TIPS TO ADD VALUE TO A HOME

By DR. RUTH MIRON-SCHLEIDER
Recipient of NJAR Circle of Excellence Award
1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010

In a previous article, “Love It or Leave It—Reasons to Fix Up a Home,” I discussed home improvements to consider based on your desire to remain in your present house for the long term or to sell it. This column continues with two cautionary points: What are some common mistakes you need to avoid? And how do you choose the right contractor?

There are common mistakes ambitious homeowners sometimes make in an attempt to enhance their properties. High-cost, high-maintenance luxuries, such as a swimming pool, whirlpool, sauna, tennis court, and labor intensive landscaping and gardening may actually make it difficult to find buyers who will want these features and be willing to pay for them.

Adding centralized air-conditioning or re-paving the driveway may simply be taken for granted and not necessarily translated into a higher sale price. Some improvements actually run the risk of turning off potential buyers, such as a patterned or too bold-colored new carpeting, or aluminum siding. The most important rule for you to remember is do not over-improve or fix up your house to a point where it becomes the most expensive home on the block. Chances are that you won’t recover your expenses when it comes time to sell. Buyers who would otherwise qualify for your asking price will probably be looking elsewhere, where neighboring homes are of comparable value. If the cost of your proposed improvements raises the value of your house to more than 20 % above the average home in your area, you will probably not recover your remodeling expenses when and if you sell your home.

Before you undertake expensive repairs or improvements, make sure you have selected a reputable contractor for the job. Choose a professional who is well established in the community and is willing to provide names of previous customers. Always seek several bids for comparison. Estimates of reliable contractors generally don’t vary too much from each other. The lowest bid will not necessarily assure good workmanship and material. Make sure that the contractor is fully insured to protect you against claims by injured workers, guests or passersby. Ask to see his Certificate of Insurance, which should list workman’s compensation and public liability insurance (personal and property). Where local laws require a contractor to have a license, verify his license number with the local building code office. A home improvement contract usually contains a description of the project, material and labor specifications, estimated costs, time required for completion, types of warranties, if any, plans or sketches of the proposed project, description of necessary permits and fees, guarantee of quality of workmanship, total price, and method of payment.

Whether you choose to remodel your current home or sell it and purchase a new home, you may decide to consult a realtor. A trained real estate professional will discuss with you any improvements you may need to make in order to sell your home. She will work closely with you and will be able to recommend other professionals you will need, such as contractors, roofers, and landscape architects.

Good luck with your home improvements!!!

Ruth Miron-Schleider, a 33-year resident of Bergen County, is a Certified Residential Specialist, an e-PRO Internet Professional and an Accredited Buyer Representative. She is a member of the Eastern Bergen Board of REALTORS®, National Association of Counselors, the Senior Advantage Real Estate Council, and the Graduate Realtor Institute. For a complimentary consultation, call her at MIRON PROPERTIES, 201.266.8555, or contact Ruth via e-mail: Miron@MironProperties.com.

Information deemed reliable but not guaranteed, subject to errors and omissions.
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