Expert: Jessica Bryan - 3/1/2004

Question
I'm planning on moving this summer.  I have already done several things to the house, but I'm beginning to wonder if I've done more than I should have.  The work I've done includes enclosing a portian of the deck (10x30) with a plastic roof and screening, paving the road to the property (shared with 2 other neighbors), regrading driveway from paved area to the house, fencing a garden area, and putting shelves/storage area in the laundryroom. I've also signed on with the rest of the neighbors to bring irrigation to the area (it's total cost may be upwards of 6k but may not be due by the time we leave).  I've spent about $11k so far.

I'm now looking at my kitchen.  My house was built in 86, and it appears the kitchen appliances; stove, dishwasher, trash compactor, and built in microwave; are all late 80's.

Would it really pay off to replace them?  I just looked on Sears' website and figure it will cost about $1500-2000 to replace them all.

My house is east of Sacramento, California.  I expect to sell the home for around $560.

Can you advise please.

Thank you

Answer
Dear Stacy,
With the market in Northern California being what it is, it seems like just about anything sells and at high prices.  If you lived in another part of the country my advice would be to replace the appliances to make your kitchen more appealing, but if the market is really great in your area, this might not be necessary.  My suggestion is to contact a real estate agent who can help you with your listing and get you into other homes in the area so you can see your competition.  That will help you decide on what to do. If you don't want to use an agent, either contact the homeowners directly or wait for open houses and go check out the other kitchens.  If they are all updated, then you should definitely update as well.  If the market is highly competitive in your area, (even if the kitchens aren't updated) you might want to consider new appliances just to have the edge over your competitors. If, on the other hand, homes are selling quickly as I said earlier, there is no need to do anything. As a rule, sellers do not get complete value from the improvements they make to their homes. If you add $15,000 worth of cosmetic changes and upgrades, you may only recover $8,000 or $10,000 but if it means that your home will sell faster or over others, it is often worth the changes.  One more thing, when you list your home, make sure to have a record of the changes and improvements you have made.  It will be a good selling point to show prospective buyers why your home may be worth more to them.  I recently listed a home that had $64,000 worth of upgrades.  I made sure to include these in all of my sales materials to support the higher price.  Most buyers will choose to ingnore a portion of these, but if they are serious buyers they will realize what it costs to do these things to the house if they were to buy it.  Suddenly there is greater appeal to having it already done!
I hope that this answer has helped you with your decision. Good luck and best wishes.
Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services