Tuesday, 28 June 2011

Are granite counters a solid choice?

Rewarding Experience
Here's a tough subject to attempt a discussion on.
Firstly, I must say I live in a 43-year-old house.
The PremiseIf you're planning on selling a 30-year-old house, do you get rewarded for your on-going improvements.
I'm not talking about shingles and a furnace -- all of which would be in their second generation by now.
I am referring to kitchens (with built-in microwave, new cabinets and high-end countertop), bathrooms (with jetted tub), carpeting, energy-efficient windows, light fixtures (ceiling fans can be expensive), breaker hydro box, plus modern amenities like central air, security and sprinkler systems, and extensive landscaping like interlocking brick and gardens with retaining walls.
The common wisdom today is that home buyers will see the upgrades and are willing to pay more for a home in move-in condition.
However, will the seller receive a return on investment (ROI) for all their efforts.
First and foremost, any significant improvement is meant to increase the owner's 'enjoyment' of a home. If you had gutted the kitchen, for example, and increase its functionality and modern amenities, three or four years before selling, you would have received a significant personal benefit from the renovation. The idea being, you would not spend over $5,000 on a renewal project, only to put the residence on the market.
The next term that would be considered is 'over-improving' a house. The best example of over-improving is an inground pool as conservative estimates are at $30,000 for a summer splash.
On the flip side, if you made only the minimum improvements in your ownership time, the pool of possible buyers would be reduced as many prospects would have to immediately consider a mortgage with 'purchase-plus-improvements'. In other words, obtaining a mortgage for an amount equal to the home's value because the property requires a new furnace, central air, and new shingles immediately. After the work has been completed, your house would most definitely be worth more than it was on closing day.
A home is an investment and a roof over your head.
The best consideration is to do the work that needs to be done. The best first impression is paint, including re-staining a back deck. Just last week I went through a 4-year-old house and already it need to be completely re-painted, in my opinion.
Granite countertops are a nice luxury, but will not pay you when you sell.
When it is time to sell, you know you've done the basics, and then your next tasks are to unclutter, weed the gardens, remove the cobwebs, scrub the floors and tub grout, and order a quick servicing of the furnace and a/c unit as inspectors really do look inside this appliance.
If you have any real estate questions, contact me at mschadenberg@rogers.com


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