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Fixing to sell.

September 06, 2011
Jonathan Clements, Director of Financial Education, Citi Personal Wealth Management

If you're thinking of selling your home, you probably won't recoup the full cost of a major renovation. But there are plenty of relatively inexpensive things you can do that might make the place more attractive to buyers.

Major home improvements are usually a money loser. For proof, check out Remodeling magazine's Cost vs. Value report, which you can view at https://www.costsvsvalue.com. Say you added another bathroom. According to the 2010-11 survey, you might recoup just 53% of the expense involved if you sell your home within the next year.

By contrast, minor improvements could increase your home's curb appeal without costing you a bundle. Start with the outside. A fresh bed of flowers, along with new shrubs, can make a big difference in how people view your home. If the whole house doesn't need a new coat of paint, perhaps the exterior doors and window trim could use a touch-up. See if any screens or storm windows need to be repaired or replaced. If the windows look spotty and need cleaning, you may want to hire a service to do the job.

On the inside, see if any walls, doors and door frames need a fresh coat of paint. If you're planning to sell, stick with neutral colors. New curtains or drapes can quickly change the appearance of a room. If the walls around the kitchen sink are looking old, you might add a few tiles.

Finally, check the floors. If you have hardwood floors, they may need to be polished, or even sanded and refinished. Carpets might need to be shampooed and possibly replaced. While even minor changes carry a cost, they could help you get the selling price you want--or, at least, allow you to find a buyer more quickly.

INVESTMENT PRODUCTS: NOT FDIC INSURED •NO BANK GUARANTEE • MAY LOSE VALUE

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