March 2014 – After a couple of years of steep price increases and strong sales, our local market is taking a breather as prices level off and inventory increases. During the run-up, homes were selling so fast that little if any preparation work was necessary, due to the scarcity and demand.
As we enter a more moderate market phase, inventory will increase and demand will cool a bit. This puts sellers in a more competitive position and may require a higher level of attention to detail in preparing homes for sale. There are two main motivations for selling, time and money.
The preparations that make sense for these two ends of the spectrum are different. Some upgrade and update projects actually provide a positive return and can be looked at as investments. For the seller on a tight budget where every dollar counts, these make the most sense.
Other projects are more expensive to complete and may not return the amount spent at the point of sale, though some come pretty close to break-even. These projects will appeal more to sellers who have money to spend in order to sell more quickly. In other words, the big projects can buy time for the seller that wants to move fast.
Some examples of low-cost projects that can provide a positive return are exterior/landscape cleanup, interior/exterior paint, flooring replacement, and minor kitchen or bath updates such as replacing fixtures and appliances with modern but modest materials. Front door and garage door replacements also increase appeal at relatively low cost.
Examples of higher-cost projects that can result in a quicker sale for those sellers who can afford to buy some time are room additions, new decks, kitchen and bath full makeovers, and the like. These projects may return only 50% to as much as 80% of the money spent, yet will generally help sell a home more quickly.
For more information and a complete survey of cost vs. value for a wide range of update/upgrade/remodel projects, please see the 2013 Cost vs. Value Report at http://www.remodeling.hw.net/cost-vs-value/2013/
Paul Sieving is a Realtor® with MacLeod Sierra Realty, a former Officer and MLS Chair of NCAOR, current President-Elect of the Nevada City Chamber of Commerce, and has served our community as a real estate professional for 14 years. Comments, questions and thoughts are welcome at This email address is being protected from spambots. You need JavaScript enabled to view it. or (530) 274-0906.
