9:37 AM
Swee Ng
by Ellen James Martin
Bank-owned homes taken back through foreclosure are still commonplace in many neighborhoods. And would-be sellers in those areas often fear fierce competition from foreclosed properties offered at bargain prices.
But Karl Case, an expert on property valuations, says individual sellers can be quite competitive with foreclosed homes, assuming they go on the market in excellent condition. Why? Because many foreclosed properties have long been vacant and are in poor shape.
"The last thing buyers want is a house full of dust where no one has lived for 18 months or longer. People worry that serious things have gone wrong with any house that sits vacant for a long time," says Case, co-creator of the S&P/Case-Shiller Home Price Index, which tracks property value trends throughout the nation.
Case says, "Cosmetic improvements don't alter fundamental values." In a buyer's market, for example, you can't necessarily recoup every dollar you spend to install new carpeting or to replace a worn shower door. Even so, improving the condition of your home can hasten its sale, or move an unsold home off the market.
Here are a few pointers for relatively low-cost improvements that could help your place outshine foreclosed homes in the same neighborhood:
Find reasonably priced help to free your home of clutter.
One of the most crucial steps in preparing a property for sale — ridding it of excess furniture and accumulations — is also one of the least expensive, says Vicki Norris, a former agent and author of "Restoring Order to Your Home."
"Chaos and other people's stuff are instant turn-offs to those looking to purchase in a buyer's market," she says.
To execute an effective de-cluttering plan, one that will make your place look clean and clear to potential purchasers, many homeowners need a support structure to gain momentum and keep on track.
You can hire one of a growing number of professional organizers, whose hourly fees typically start at $75. Your listing agent can likely recommend a skillful organizer. Or, you can search for one in your area through the website of a group like the National Association of Professional Organizers (www.napo.net). You can also turn to a friend or family member willing to help sift through your possessions.
Put a spotlight on kitchen improvements.
Sid Davis, a veteran real estate broker and author, urges cash-challenged home sellers to "triage" in the kitchen, focusing on the projects in greatest need. One typically involves improvements to kitchen cabinets, "which very often have accumulated years of dirt and grunge."
"If you have wood cabinets, you can make them look a lot better through a thorough cleaning with Murphy Oil Soap, followed by a rubdown with lemon oil. If that doesn't do the trick, sand and re-stain your cabinets or paint them in a high-gloss white. Also, be sure to add new hardware, which shouldn't cost you more than $50," he says.
Another low-cost kitchen improvement involves replacing worn flooring. Davis says the skills needed for this task are easily acquired through a class offered at a home center store or online.
"Vinyl flooring is the cheapest, but the price for a nice tile floor has come down dramatically," says Davis, who recommends you shop for tile at a discount store or home center outlet and then ask the retailer for the names of reputable installers.
Should you choose granite countertops to hasten the sale of your property?
"That expense should be unnecessary, unless most of the other homes in the neighborhood already have granite countertops, making this the standard to which you must rise," Davis says.
Look to painting to improve your odds of selling well.
One proven strategy for adding appeal to your interior is to paint the walls and trim throughout. For advice on painting technique, consult the websites of major paint companies, or borrow a manual or video on the topic from the library.
"The only major element to a good painting job involves solid preparation, mainly sanding and surfacing, and attention to detail," Davis says.
Though painting is a cost-effective way to put your property in peak selling condition for a small amount of cash, he says it's essential to select your paint carefully.
"To get a good grade, you spend extra per can. But the quality differential for excellent paint makes a huge difference," Davis says.
Find low-bid contractors for the most challenging projects.
Are you a homeowner with limited funds to pay contractors for complex or potentially hazardous presale repairs like roofing or electrical work? If so, Davis urges you to resist the temptation to do this work yourself.
To make the most of your scarce resources for home improvement work, he recommends you seek three to four competitive bids from contractors who come highly recommended.
