Monday, February 18, 2008

Is Redoing The Kitchen Worth It During Home Sales?

This has been a question that has seen much press and attention when referring to homes sales. Kitchens are a popular room to redo before selling a home as they are one of the classic "show points" in any home show. Also it is a room that can be very easily improved and upgraded. New appliances and countertops can bring new life to a kitchen and indeed this is one of the first rooms that people consider upgrading when closing in on selling time.

The question remains; will you be able to justify the costs of the new kitchen in the asking price? This is a question that should be investigated thoroughly from all angles. Take a look at the average asking price of homes in your area. Make sure that you also look at what they are actually selling for. If your home is already worth that amount your new kitchen may price your home out of the local market and that is never good as it becomes much more difficult to sell a home that is higher priced than it's comps.

Instead of redoing the entire kitchen, why not concentrate on a few things that will spruce up the way it looks? Putting up a new coat of paint is always a good place to start. This goes for all rooms by the way. If your appliances don't match then this is another thing that should be seen to. Matching appliances seen to bring a kitchen together in a way that paint or wallpaper can't seem to do. As one of the main social centers of a home a kitchen should be more than just clean and updated.

It should have a feeling to it that is warm and welcoming. Kitchen s that are cold and bland seen to feel very utilitarian and lack the warmth of properly done kitchens. This is the one place that your family will gather every day so it stands to reason that it should be the most welcoming room possible. The choice is up to you of course. If you feel that the cost of redoing the room can be supported by the asking price and the likely closing price then go ahead! you will definitely not have trouble impressing buyers with the new custom kitchen.
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Home Warranties

What is a Home Warranty?

It is a 1 year service contract that helps protect homeowners against the cost of unexpected repairs and replacements of covered major systems and appliances that break from normal usage. What Does a Home Warranty Cover?

- Water heater
- Heating system/Cooling system
- Plumbing system
- All major appliances
- Electrical system What it Doesn't Cover
- Roof
- Doors & Walls
- Items not built-in

Optional Warranties
- Roof
- Well pumps
- Swimming pools, spas

A warranty normally excludes pre-existing conditions, such as items that are not in working condition when coverage is put in place. Where can I get One?

Your REALTOR can provide you with the company information. Many times a seller pays for and provides the coverage to the buyer as part of the transaction.

Ask for a "seller provided" warranty when making an offer on a house. Many buyers purchase them for their own protection.

How Much Do They Cost? The cost for a basic one-year home warranty ranges from $325 to $425. Optional coverage is per added item, such as pool, spa or well pump. Each contract calls for a deductible payment or service call fee from the claimant directly to the repair contractor. This fee is usually $50 to $100. The warranty company picks up the cost of repair above that amount. Home warranties have proven to be well worth the cost of coverage. As a buyer, use it as a negotiation tool in a purchase contract. Why a Home Warranty

Sellers: A Home Warranty provided by the seller will be viewed as a benefit to the buyer. Adding a home warranty to your listing adds confidence and might result in someone purchasing your home over a newer home. Many people are nervous about old appliances and fixtures. Buyers are much more comfortable with a house that includes a one year warranty. The warranty can be promoted in the advertising as a drawing feature of the home. It protects you should something go wrong after the buyer moves in. If a covered system or appliance repair is needed, the Buyer calls the warranty company, not you!
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