Rancho Santa Margarita Homes & Lifestyles

Sellers need to think twice before spending money on home improvements in 2009.  When every dollar counts, sellers need to be even more cautious when it comes to spending money on home improvements - especially if they are planning to sell in the near future.Let’s face it.  Renovating a home is expensive.  The typical West Coast Home Renovation costs 17% more than the national average.  Add that to the fact that most home remodeling projects today cost an owner more than he nets out of it at the sale.   Today’s seller needs to balance a home’s competitive desirability with the bottom line investment value.  In Rancho Santa Margarita that means marketing smarter and easier.  It means pricing competitively, not throwing money into unnecessary improvements.

But let’s say you’re an owner who has recently purchased a primary residence for a fantastic price.  You factored some improvement cost into your budget before you purchased the home, and your intention is to live in the home for a while.  Your primary goal is to turn your new house into a home.

Here are 5 Home Improvement Projects that are close to break-even investments:

Project                         Job Cost*            Resale Value*     Cost Recouped*

1.  Fiber Cement Siding $13,697                    $13,172                      96.2%
2.  Minor Kitchen            $22,974                    $21,944                     95.5%
3.  Wood Windows          $20,303                   $19,130                      94.2%
4.  Vinyl Windows           $16,192                    $15,160                     93.6%
5.  Wood Deck                 $13,125                     $12,748                     97.1%

If you would like additional cost vs. value information on a specific type of home home improvement, please use the Contact Me button under my photo on the right hand column of this page.

Click here to read about the Top 4 Home Improvements to Avoid in 2009.

Click here to read Should I Remodel My Rancho Santa Margarita Home Before I Sell?

*  Remodeling Magazine’s Cost vs. Value Report 2008-2009 - Los Angeles Area

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If you’re considering renovating your Rancho Santa Margarita home in 2009 you may want to avoid these four projects:

Project                         Job Cost*            Resale Value*     Cost Recouped*

1.  Sunroom                        $82,301                    $49,920                      60.7%
2.  Home Office                  $31,153                     $20,270                      65.1%
3.  Back-up Generator      $16,026                    $10,647                       66.4%
4.  Master Suite                 $258,746                  $176,690                     68.3%

The statistics and numbers above have been provided by Remodeling Magazine’s Cost vs. Value Report 2008-2009.  I use these statistics as general guidelines when making recommendations to my clients who are looking make improvements to their South Orange County homes.

Most of my clients fall into income and asset brackets which require them to work within a budget and to make smart financial decisions.  They like to personalize their homes, but chose to do so with resale value in mind.

If my clients goal is to remain in their current home for quite a few years, I recommend that they make two lists.  The first is a list of probable home improvement repairs or replacements.  This list would include any items that were included on the buyers home inspection report, and that may lead to subsequent additional expenses if a repair or replacement is not completed in a timely manner.  Examples of this would be leaky pipes, loose flashing, or cracked or missing roof tiles.

On the second list, I ask them to write down five home renovation or improvement projects that would make them feel more comfortable and more enamored with their home.  This list might include a minor or major kitchen remodel, new vinyl or wood windows, new landscaping with landscape lighting, a remodeled bathroom or replacing the carpet with Brazilian hardwood.   The list should be made in order of importance, with the most important improvement at the top.

Once this list is complete, I have them write down rough estimates for each of the projects.  The next step is to analyze the cost to recoup for each of the projects.  Usually just seeing the numbers in black and white prompts my clients re-evaluate their priorities.  While an full upscale kitchen remodel might seem more desirable at first glance, compromising to a mid-range kitchen remodel will meet most of my clients’ design requirements.  At the same time it minimizes unrecoverable improvement expense.

In all cases, my recommendation to my clients is to take care of any items on List #1 before undertaking any of the “pretty” projects.  Keeping a home maintained and functional should always be the top priority. Don’t let the items on this list fall by the wayside in order to complete your List #2 projects.

Click here to read:  5 Home Improvements for Rancho Santa Margarita Owners To Consider in 2009.

Click here to read:  Should I Remodel My Rancho Santa Margarita Home Before I Sell? Profile of Today’s South Orange County Buyer

*  Remodeling Magazine’s Cost vs. Value Report 2008-2009 - Los Angeles Area

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