8 northfulton.com
Sponsored Section • real estate report
July 2018
What’s hot and what’s not Why it Works for Some and Not Others Hooray! You made your last tuition payment or maybe paid for the last wedding. And now it’s you and your spouse in a great big house. So it’s time to set in motion your grand plan, which goes something like this… 1. Sell the big house and move to a smaller house that’s easier to maintain, 2. Pocket the $100k or more from this transaction, 3. Take an extended European vacation this summer with some of the proceeds from the sale of the house. The Unwelcomed Cold Shower. As it turns out the grand plan may not happen just like you planned. You learn this when you call your favorite realtor and spend a day with them. It’s at this time that you realize that a new, smaller house costs more than you ever could have imaged. It’s at this moment that you truly feel the impact of new home prices rising faster than older home prices. The Punch to The Gut. Just as your realtor has done their best to explain the prices of smaller homes, it’s time to assess the listing price of your present home. Because you sent your kids to private schools, the very best colleges, bought cars for them and paid for weddings…..well, you never quite kept up with the whole remodeling thing. Your house was built in the 80’s or 90’s and it looks like the day it was built. Formica or Corian in the kitchen, a garbage compactor and desk in the kitchen. In the bathroom: gold framed small shower, cultured marble counters and huge mirrors glued to the walls. Every home in North Atlanta has the same finishes and they’re all “out of style” which makes your home NOT “Move in Ready” to the prospective buyer. So your realtor suggests a listing price far below your expectations. Don’t shoot your realtor they’re pretty familiar with this situation.
Is it all Bad News? “No, for those homeowners who have remodeled their Kitchens and Bathrooms, they are getting top dollar when selling their homes” says John Hogan, owner of Roswell’s Remodeling Expo Center, “families are fleeing the City of Atlanta and paying top dollar for move-in ready homes in North Atlanta. It’s all about the schools. Remodeling Expo Center has been assisting homeowners for 16 years with exactly this issue. The Rule of 1.5. When a prospective buyer assesses the value of your home they will apply the Rule of 1.5 to any room that requires remodeling, that is if they don’t just pass on your home. For example, if they believe a new kitchen will be $40k, they will discount your home by $40k times 1.5 or $60K. Same goes with the master bathroom. So you can see how brutal the Rule of 1.5 can be for the homeowner. This really hits home when offers come in very low or the realtor suggests successive listing price drops. So what’s the answer? First and foremost, don’t postpone remodeling to when you’re about to sell, because you won’t get to live and enjoy it. Secondly, remodel the rooms that will show the strongest return on your investment and thirdly, do it in a style that most people would enjoy. Remodeling Expo Center has been partnering with homeowners and realtors for decades to make “the home” not only functional, but a performing investment vehicle. “That house sold in 24 hours and for over the asking price”. This isn’t neighborhood folklore; it really happens. Homeowners who have the attitude of “I’ll let the next owner remodel” are doing themselves a great disservice. To learn more contact The Remodeling Expo Center at 404 910-3969 or stop in at 48 King Street, Roswell, GA 30075. RemodelingExp.o.com