 Remodeling
credit lets buyer apply own tastes
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 Dear
Real Estate Adviser,
We are selling our home "as is." It's 22 years old and in a still-popular neighborhood. We don't want to upgrade the kitchen because we believe the buyers would probably want to change the look themselves. So we are considering offering a $5,000 credit toward the kitchen remodeling. Why do so many experts suggest upgrading if so many buyers will still want to apply their personal tastes?
-- N.A.
 Dear
N.A.,
Even though buyers will probably change and customize some things
after they move in, it's still vitally important that you put your best foot forward
in today's market where sellers have a lot more competition than they did just
18 months ago. But that doesn't necessarily mean you should gild the farm en route
to giving it away.
Past "Cost vs.Value" surveys
done by RemodelingOnline
show minor kitchen remodels come closer to paying for themselves (from 92 percent
to 98 percent) at the time of sale than remodels of most other home areas, as
does a Bankrate remodeling
interactive. Of course, you're out 2 percent to 8 percent plus your time and
effort, but the important question is: Have your remodeling efforts made your
home more desirable? That's much tougher to gauge. Ask your real estate agent
what types of improvements tend to help sell houses in your neck of the woods
and to what scale. Any agent active in your area in recent years should have a
pretty good idea. If out-of-pocket money for remodeling is
a key issue, you can consider refinancing or get a modest home improvement or
home equity loan. But if you decide against the kitchen remodel
in favor of offering the $5,000 credit -- and such throw-ins are increasingly
important these days, by the way -- there are still some inexpensive little things
you can do to enhance the kitchen and give it that all-important "cared-for"
look when it is being shown. Besides keeping that kitchen spotlessly scrubbed
and mopped as you're showing it, you could give the room a fresh coat of paint.
You could make spot repairs where the kitchen floor may be marred, regrout it,
and add new knobs or pulls to the drawers and doors. If the cabinets are unsightly,
consider resurfacing them instead of replacing them. But as you noted, color schemes
and styles are sometimes best left to the discretion of future owners. Whatever
you decide to do, make sure you keep thorough records of any improvements your
make for view by the buyers, even if the repairs are minor. One more thought:
the $5,000 credit, while still relatively generous, will not cover all-new appliances
and all-new cabinetry in most kitchens these days, so you might just consider
earmarking your offer as a general remodeling credit. You may even want to add
another thousand or so to it if need be as a negotiating tool. Here's
hoping your forthcoming sale is a successful one. To ask
a question of the Real Estate Adviser, go to the "Ask
the Experts" page and select "buying, selling a home" as the
topic. | 
