Can't live with your too-small kitchen any longer? Desperately need
more storage space in your home? Always dreamed of a sunroom off the
back or a bathroom downstairs? Like many Americans, you may be
considering one or several home improvement projects that could make a
real difference to how you live in and how much you enjoy your home. In
fact, many Americans have taken the leap already, spending $149.5
billion on home upgrades in 2005 alone, according to Harvard's Joint
Center for Housing Studies.

Much of the home improvement boom has been paid for by the homes
themselves, that is, from owners tapping their home equity through
equity lines of credit, home equity loans and cash-out refinancings.
It's a smart move for homeowners who use that equity wisely--spending
on improvements that will pay them back with a higher property value
when it comes time to sell.

Experts advise homeowners to think carefully about what improvements to
make, when to make them and how much to spend on them. Here are some
valuable guidelines to consider:

1. Don't improve beyond the neighborhood. Fair or not, your home's
value is tied to the value of the homes around it. Records show that
homeowners have difficulty selling homes worth more than 20% above the
average value of surrounding homes. Buyers tend to steer away from the
most expensive home in a neighborhood, partly because they have trouble
putting an accurate price tag on a room addition, extra bath, etc.

In addition, chances are a similarly priced home having the same
amenities as you've added is available in what buyers perceive to be a
"better" neighborhood--where most every home has those amenities.
Make sure to keep your total upgrade costs under the 20% limit to
increase the chance you'll get all your money back when you sell.


2. Keep up with the neighborhood. If most of the other homes in your
area have already added a second bathroom or bumped out the kitchen or
turned a carport into a garage or installed new siding, those items
should be at the top of your home-improvement list.


3. Time major improvements so you can enjoy them. In most cases, it
doesn't make sense to undertake a big, costly home improvement just
before you intend to sell. Why spend the time and energy when you may
not get back everything you invest? Better to spend what's required to
put your home in good condition--fresh paint, needed repairs, new
carpeting, a thorough cleaning and a yard trim. Note, however, if a
major system in the home, such as its roof, furnace, water heater,
etc., needs replacement, you should go ahead and get the work done
before listing your home. Today's buyers want homes they can
comfortably move into today--not one that has an immediate problem.
(Dropping your listing price to cover the cost of a system replacement
is another option, but you may actually have to go lower than actual
costs to attract a buyer to your "flawed" home.)


4. Research first. You may dream about expanding your small master
bedroom into the next bedroom by taking out a wall. Think twice. An
appraiser may not count your bigger, better master bedroom for as much
value as the additional bedroom you took out--you could end up losing
money!

Give us a call to find out how a home improvement project would change
the value of your home. In some cases, you might be better off selling
your home and buying another that already has the amenities you want.


5. Make popular choices. Again, we can guide you in terms of what
today's buyers like--and don't like. Go with "neutral" colors--white,
off-white, beige, etc.--for expensive-to-replace items such as
cabinets, countertops, flooring, carpeting, siding, etc. Buy good
quality and reliability but steer clear of high-end or trendy fixtures,
materials and appliances. Buyers may like them but usually won't pay as
much for them as you did--unless, of course, they are standard features
in neighborhood homes.

Call us for more home-improvement ideas that can make a real difference
when it comes time to sell your home.

Regards,

Scott Miller
National Commercial and Residential Lender
Carteret Mortgage

1.877.716.6495, ext. 5

www.RealEstate-IQ.com
www.EZMortgageLoanz.com