Sellers should consider 'bang for the buck' in remodeling plans

Sparkling new kitchens and spa-like master bathrooms still sell homes, but homeowners looking for the best return on investment should more often consider minor updates that wont break the bank, real estate experts say.

Remodeling projects can be daunting, but homeowners who set a budget, define their goals and come up with projects that stretch their dollar the farthest will come out on top.

Realtors say they encourage homeowners to undertake major remodeling projects only for personal enjoyment because often the biggest and best improvements dont have a dollar-for-dollar return, especially in the short-term.

The rule I always tell my clients and my sellers is never put a nickel in unless you will get a dime back, said Gary Dominguez, a Lincoln, Neb., real estate agent with HOME Real Estate who spent 25 years in the remodeling business.

John Bredemeyer, president and founder of Realcorp Inc., an appraisal firm in Omaha, Neb., said the best remodeling projects before selling a home are high-impact but with a relatively low cost. A new kitchen could cost $25,000 or more, but new countertops could be installed for $5,000 or less. New carpet and paint are also good projects to consider, he said.

The simple things, go ahead and do, Bredemeyer said. (With) the bigger remodels, the thing you need to think about is how long you are going to be in the house.

Completed remodeling projects dont always translate into a higher resale price, because home appraisals also take into account the value of other homes in the neighborhood, he said.

Bredemeyers daughter, Abby Andress, followed her dads advice before she and her husband put their three-bedroom, 1978 split-entry southwest Omaha home on the market last year.

They painted their kitchen cabinets off-white, added a cement finish to the bathroom countertops, cleaned the carpets and rebuilt the deck.

It made it look newer, said Andress, 30.

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Sellers should consider 'bang for the buck' in remodeling plans