place they can walk into and feel comfortable living there.
Q. Is there a “reverse wealth effect” psychology out there that home prices have been, and are, falling so much that whatever improvements homeowners make, it’s a lost cause?
A. It all depends on how you have kept your home. How old is it? Have you kept up with home improvements over time? Have you updated your home over the decades? I just worked on a house that the homeowner had not done anything to the place since 1973 since she moved in. You should have seen the place. No one but an investor will buy a property like that.
You would get maybe half the asking price if you are lucky. To answer your question, every house, area, location is a different story.
Vacant houses are extremely hard to sell. When houses are vacant, it tells the buyer that the owner is in distress and will take a lowball offer.
Q. If you are working with any contractors, landscapers, painters, what are they charging versus what they were charging before the economy went in the dumper?
A. Yes, prices are better than say five years ago for the homeowner. Contractors have to be very competitive in order to get work.
You really have to be careful when choosing people to work in a client’s home. When getting a quote, or bid for work to be done, the first question you need to ask the painter, electrician, landscaper, carpenter is, ‘Will you be doing the work?’ Q. Is it cheaper now to do remodels than in previous years?
A. Yes, I would say so. If your payback period is the long run, then now may be the time to act if you have the cash.
Q. You say it’s cheaper to remodel now than in previous years. Can you give some comparisons?
A. Again, I would say contractors are way more competitive now than five years ago, there is just not enough work and money to go around now. So pricing is the highest priority now. A few years ago when people were getting loans, home equity lines, and what have you, and keeping contractors busy, there was far less competition than there is now. I would say rates are 25% lower for remodeling nowadays.
Q. When remodeling a home, what should a homeowner keep in mind in terms of getting the best bang for their buck?
A. Kitchen is No. 1 because most women are looking to see how functional the kitchen is. Paint is worth its weight in gold. A fresh coat of paint is a must. Nice warm colors are nice — definitely not white. Nice flooring is important, whether it be tile, laminate wood, faux wood, real wood, carpet.
Next would be the bathrooms.
They actually are an easy fix: new toilets, fresh paint, new lighting fixtures, faucets, bathroom accessories. New light fixtures throughout a home are very important. Old, cheap lighting dates itself and looks bad.
Curb appeal of course is very important. The exterior has to look good so you can get them inside — fresh paint, stucco, trim and garage door. Landscaping needs to be in good shape. If you have someone in your home who is handy and can do the small jobs, you can save yourself a lot of money if you have the time to take on some of the projects.
ATTENTION REAL ESTATE AGENTS AND BROKERS
We want to hear about some of the most ridiculous requests mortgage lenders are asking borrowers before approving a loan. Vaccination schedules? SAT scores? A copy of your great-grandfather’s credit report, and a detailed family tree that dates back pre-20th century?
We know agents are seeing their buyers put through the ringer, and we’d like to hear, and maybe tell, your stories. Email them to djergler@gmail.com.