The posting below is a copy of an article published in Boca/Delray Life Magazine in January of 2006.

All homeowners, whether they’re selling or not, wonder what their home is worth. It’s one of the big topics of conversation at many parties. Determining a home’s value starts at the neighborhood level. The value of your home is based on the average sales price of similar homes with adjustments made for various factors, such as general condition, view, upgrades, etc. Therefore if your home is in worse condition and/or doesn’t have upgrades or improvements that other homes in the neighborhood have, then your home will be worth less than the average and vice a versa. One thing to be careful about is that you don’t go overboard upgrading and improving your home unless you’re doing it solely for your own pleasure as you will have a hard time recouping the money expended.The other factor to consider is the supply and demand situation in the market. In a rising market with demand greater than supply, prices rise and the condition of your home may not be as important, at least in terms of selling your home, however the better the condition the higher the sales price. In a rising market buyers are happy to find any home and will overlook flaws and the home seller won’t be penalized as much in terms of sales price. In a market where supply and demand are in balance or there is an oversupply of homes the condition of your home becomes much more important as buyers have more choices and will buy the homes in the best condition first. Homes that are in below average condition will stay on the market longer and as a result will sell for less than they should. So what can you do to improve the condition and thereby the marketability so you’ll maximize the value of your home? The first and easiest to thing to do is to make cosmetic improvements to your home. Things as simple as cleaning, painting and re-carpeting a home can do wonders. Adding some decorator touches is a big help. Landscaping your home is another great way to improve the curb appeal and value. Many is the time I’ve gone out to show a listing from another agent and the home owner hasn’t spent the time to clean or prepare their home for showing. There are dishes in the sink, dirty laundry in the closets, the home smells (of who knows what) and the bathrooms look like a public toilet. Neglect such as this can cost homeowners thousands and delay the sale of their home. Another not so easy way to increase the value of your home is through renovations/remodeling.

In Florida almost any such improvement will more than pay for itself within reason. At the top of the list of return on dollar spent are things like minor bathroom and kitchen remodeling in the $10,000 to $15,000 range. These improvements show a return in excess of 30% in the Miami and Orlando markets based on recent statistics. Close behind are things like roof replacement and window replacement which may become even more valuable due to the up tick in hurricane activity. Other improvements such as an addition may show a moderate to very little return and something like remodeling your home office will probably result in a negative return.

If you are planning to sell your home try to be as objective as possible in assessing the condition and value of your home. Don’t fall prey to a small minority of agents I like to call the pie in the sky agents who overvalue your home in order to get the listing. Over pricing your home can cost you valuable time and stigmatize a property as people wonder, “why hasn’t this home sold yet” or “what’s wrong with this home.”

(Please note that all aspects of this subject cannot be addressed in such a short article. Do your homework and seek the advice of a professional.)

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