Home remodeling projects that are not worth the investment

The following is an except of an article that may be of interest to some home owners that are trying to sell their property.  I found this through a Squidoo lens. Enjoy!

________________________________________________________________________
Big home remodeling projects may not be worth the investment
By Alan J. Heavens

If a seller is making improvements, they have to be the right ones. Perhaps just new appliances or a new sink, said Ruth Feldman of Weichert Realtors/McCarthy Associates in Philadelphia.

“A new kitchen or bath with the wrong layout or amenities will hurt the sale,” she said.

“If a new deck or finishing the basement will expand the space in a very small house, then that might make sense or be worth the money, even if don’t see the exact dollar return, as it would make a big impact.”

In a continuing climate of tight credit, getting the money to pay for home improvements is difficult, unless your pockets are very deep.

“The home-equity loans and lines of credit are just fancy names for a second mortgage, and that market is a bit tough,” Philadelphia mortgage broker/Realtor Fred Glick said.

“Most banks are still going up to 80 percent loan-to-value, and I actually have one lender that will do 85 percent,” he said. “But credit must be very, very good, and full income documentation is a must, along with a real appraisal that needs to be done, not just a drive-by.”

The old fashioned home-improvement loan? Very hard to come by, Glick said.

Remodeling has slowed nationwide. Architects were hit hard as real estate sales dwindled after the home buyers’ tax credit expired June 30. And the index used by the American Institute of Architects to measure future spending on construction fell in October after rising […]