Should you remodel before you sell? Cost vs. Value

 








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Should you remodel before you sell? Cost vs. Value

Introduction to the 2024 Report

All right, so the 2024 report came out and there's a national version of it. And then there's also regional. There's not one for the state. That comes out from the California Association of Realtors. This one's done by JC Online, which is a contractor. 


Cost vs. Value in Home Remodeling


And then this cost of value thing is for a remodeling association of America, but look cost to replace a garage door is about 4, 500 Not really. It's really about. 10, 11. So you don't really get that money back, right? 


Regional Variations in Remodeling Costs


Talking about stuff in Northern California, Silicon Valley specifically, I can tell you that. Prices are jacked up because the cost of living here is so high that it's hard to say, yeah, that makes sense.




Easy, Affordable Bathroom Updates

Specific Remodeling Examples

For example, I spent about 14 grand on my front door. Now it's French doors. I have side lights. I have a transom up top. We got the door at a really good value, but everything else was added on What is it? Grand entrance fiberglass. We got pure wood. Ours is like some exotic wood.


We didn't buy it specifically for that. We saw it as a floor model that had been returned because the door locks didn't work. So anyway, Ours was closer to, I want to say 14, maybe. I don't know. Anyway, the value is 16. So you do get a little value out of it. I wanted a new door because mine was old and shoddy and beat up and hollow.


And this is a beautiful door, right? And then window replacements. Now there's only one company that does wood and that's, Anderson and they're stupid expensive. You can go a lot cheaper. You can get dual pane windows and it's going to be a lot less expensive A major kitchen remodel is 75 to a hundred thousand dollars.


The value you get when you sell your house is about 56, 000. So you're losing money when you do it. When I tell you, you shouldn't really remodel your kitchen. Now put a new counter on it, paint the cabinets, put new fixtures on it and new appliances. Yeah, absolutely. That could be about 20, 000 000 for new appliances, plus, a new counter, new sink, new fixtures, all that stuff. Bath remodeled 43, 000. Now I didn't spend that. I can tell you that right now, but you also only get 28, 000 value out of it. Again, this is Alaska down to San Diego, right? So keep in mind that it's very regional, not specific to your micro market.


Roofing and Safety Considerations


Roofing replacement. With the onset of all these wildfires, having metal on your roof actually makes your house safer, believe it or not, because metal doesn't burn. Asphalt does Metal is a new thing. It's been around for 30 years, but in the trends aspect, you're seeing more High-end houses with metal roofs, especially out in places where there's high fire, hurricanes, snow, you name it.


So what we're seeing in the high country is more metal roofs. So yeah, it's more expensive but also makes your house safer. So you don't get a whole lot of value at it because people don't look at roofs, right? They say if they see an old roof, how much longer Can I keep it until it has to be replaced? That's what we did when we bought this house. We knew it had 7 to 10 years on it. And the next year we had a massive windstorm, that blew off half of my roof and the insurance company gave me like two grand for that because it was an older roof. So I wound up paying a lot more money for it.

And I only put comp on it. 




Adding Value with Home Additions


Bathroom addition, 63, 000. Are you going to add a room? Are you going to add a major suite? Primary suite addition 175, 000 because you're going into civil architectural massive permits, foundation movement, structural movement on your house, it still costs a lot of money to do that, but you still don't get the value out of it, unless you learn how to work with contractors and add value. If it's only a two-bedroom, one-bath, you add a master suite. Now you have three bedrooms and two bathrooms. That might make it worthwhile because people want three bedrooms, not necessarily two bedrooms.


If you want to learn more about that, go to my links. It's all linked in my blog. One of the cheapest things, and this is what I tell people, is to put new fixtures on, paint your cabinets, put new counters on, and get rid of the tile.


Nobody wants tile counters anymore. They want quartz. I prefer granite. I'm just a granite guy. They last longer. They're more durable. They chip, but they're easy to fix. And it just feels warmer, even though granite is colder. New fixtures, the easy, affordable update you're not making to your bathroom.


It could be for the kitchen too, right? Think about it. If you spend less than a thousand dollars on fixtures, including the faucet, handles, switches new door handles, and new shower head, You go from the old 1980s version of brass to a nice stainless steel or oil-rubbed bronze.


Your house is going to look a lot nicer, especially if you put a new counter on it and paint it. I'm not a fan of painted cabinets unless they're old and dingy and gross and they have toothpaste all over or grease my new kitchen, which is five, seven years old, has grease and cracks and all sorts of stuff on it.


So if I ever sold my house, I would have to have that sanded down, degreased, put some, bondo in it, micro bondo, and have it repainted I have got paint-gradee cabinets, upstairs. They're all maple wood with a toffee stain on it.


I like that. I have granite countertops upstairs It feels like a strong bathroom versus an old, choopy-looking thing. If you're thinking about selling your house, download this inspection checklist.


Home Inspection CHECKLIST HERE https://abitanogroup.com/homeinspectionchecklist

This does not forego a professional inspection. It allows you to create a checklist of things you should repair. Spend a few thousand dollars or do it yourself, and get stuff fixed. You have cracks and broken stuff. A broken dishwasher. The dishwasher trim needs to be glued on a pop tile from my bathroom remodel.


Some grout missing from the backsplash. I would look at this list and create my honey-do list from that. 


Featured Homes of the Week

Cupertino Home of the Week

Cupertino home of the week, Pasadena Ave, is not my listing. I drive by this listing all the time. This is right on a corner Of a street in the Monta Vista area. And this old, decrepit-looking home has been turned up and is selling for a ton of money. You could have spent some money and painted that. Instead, they went cheap and then they staged it and put new fixtures on. This house should have been sold for the property because it's a 6, 300 square-foot lot and everything around there is all brand new McMansions. That's what people want. They don't want old and updated. It's been on the market. Six days now, probably going to sell pretty quick. 

Willow Glen Home of the Week

Willow Glenn house of the week, three bedrooms, two baths, 1800 square feet built in 1949, 2.4 million. Let's look inside. Everything's been updated. Even the siding and the exterior have been updated. This is a pretty house, but again, people are looking for it.

McMansions, they would take this lot, which is 7, 900 square feet, tear that thing down. It would be sad to do that. The sellers are maximizing the value of this house. This is exactly what my bathroom looks like. Same shaker cabinetry, et cetera, They put dual pane windows, and there's a nice layout. I love it when agents do this, it's smart. I think it's professional. I think it should be. 


Luxury Home of the Week

Expected air conditioning in a car today, all of Tree Lane, the luxury house of the week, not my listing, seven bedrooms, four and two half baths.

That means it's six toilets to scrub 200 square feet on a full rolling hill acre and was built in 2012. But this is gorgeous and I'll bet you anything it's in the fire zone.

Get professional photos. You already have a picture of the bedroom. This isn't even the same bedroom.

There's another blurry photo. What's going on?

Orange. Yeah. I'm not a fan of that kitchen. I like that living room though. It feels like the agents did it themselves because these pictures are not, this really looks like fish islands. I'm not a fan of that bathroom either. That looks weird, but you know what I can tell you right now, this is partially staged or they had an interior designer come in and stage their furniture because These are nice touches. This is nice furniture. I think they had somebody Staged their own furniture.


So it's nice. And of course, they didn't have a floor plan. 


Bay Area Sales Report

All right 12 Bay Area sales report 678 closings year to date Contra Costa And Alameda are coming close. Can't tell me that the market's slow right now, right? We have a low inventory, but people are buying houses.


We've sold 1. 5 billion dollars worth of inventory in Santa Clara County alone, just 266 million in this last week. That's crazy. People are like, I thought the market was slow. No, it's not. There's still demand here and people are understanding that 7 percent sucks, but they still have to move or they want to move or they want to buy a house.


Now's the time to do it because when rates go down, more buyers enter the market. There's a lot more competition. So now's a great time to buy a house. Now's a great time to sell your house because they're still pent-up demand over the last couple, and three years because people are just tired of waiting.


They're done. The rates are nominal. The average price is 2. 3 up still from last week or down from last week. Over the last year, it was 2. 2 million. So we're still up an average list price over the sales price. It's 1. 7 or 7 percent over, so almost 8 percent over the list price That's up 1 percent from last week. Remember the last couple of weeks I was telling you Contra Costa was out of frame. They were doing something weird and the same with Sonoma. Those numbers were off. They're back to normal now. So these are more accurate numbers. And again, let's take a look at Napa.


Napa has 71 wholesales. They only have 200 houses listed so far year to date. They have 29 new listings. They're selling their houses at 95. Three cents on the dollar and the average price is one point four and it takes 96 days to sell three months To sell your house. It's crazy.


Same thing with San Benito We're looking at 41 days and 1. 5 million and houses are coming in at 98 cents on the dollar. Santa Clara if you need to be near Apple and Facebook and All that Santa Clara County. Absolutely. And this also goes all the way down to Gilroy. So take that into consideration, but there you go.


 

Thanks for watching. I'm Vito with Abitano. We'll see you out there.






🔴 Gorgeous Custom Built Estate 1036 Ridgemark Dr


Vito Scarnecchia

Real Estate Broker, Veteran, Dad

DRE#: 01407676

408-705-6817

Vito@abitano.com

Update your home value: https://hmbt.co/bT7qRJ      

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If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents!


🔴 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg


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