You want to invest in your home – wisely. So how do you decide where to put your money?

Improvement projects don’t automatically increase the value of a home – factors like the state of the neighborhood can be more important to your bottom line. But knowing which improvements give a higher return can help boost your home’s value and save you time and money. 

Here’s a quick look at how you could prioritize projects around your home.

Address the small stuff
A home plagued with many minor issues is usually considered less desirable and harder to sell. Those dripping faucets, running toilets, torn vinyl flooring and damaged carpet instantly make a bad impression on buyers. Put your money into those first and use what’s left to make larger improvements.

Boost curb appeal
It comes as no surprise that exterior home improvement projects rank as the most cost effective, according to Remodeling magazine’s 2014 Cost vs. Value Report. It ranks projects based on their cost and how much money they recoup after selling.

96 percent – Replace a wooden front door with a steel security door
87 percent – Add a new deck
78 percent – Replace siding
78 percent – Install a new garage door
78 percent – Install new windows

Consider interior investments
84 percent – Convert an attic to a bed and bath
82 percent – Minor kitchen remodel
77 percent – Basement renovation

If you’re thinking about selling your home, talk to me to evaluate what to change or replace.  I know your neighborhood, and can guide you toward projects that will make the home buyer-ready and also give you the biggest bang for your home-improvement buck.

For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (including me) and a mix of neighborhood exploring and online search.

For some, the search takes a while; others find what they want right away. In either case, I can be a huge resource of insight and guidance, working through issues or complications that arise along the way.

Here’s a general outline of what to expect during a home purchase, from the buyer's perspective.

Buyers make a purchase offer. This is it! You've found the home of your dreams, looked over disclosure documents, reviewed comparable sales data, talked it over with your agent and submitted an offer. The sellers may accept your first offer, but more often will return a counteroffer. In fact, additional negotiations are common, and your agent will help you through this generally stressful stage.

The sellers accept. Once everyone is happy with the terms, the parties have reached what is known as mutual acceptance and enter into a purchase and sale agreement.

Buyers put up earnest money. To solidify your intent to buy, you'll place a deposit, or earnest money, on the property. The amount varies, but is generally at least 1 percent of the purchase price. You'll write the check to the escrow company, not the seller. Note: This money counts toward your down payment later.

Escrow opens. The earnest money deposit goes into an escrow account, where all funds will be held until closing, when they are then distributed to the right people (lender, mortgage broker, title insurer, real estate agents, etc.).

Buyers apply for a mortgage. This step is streamlined if you've already been preapproved for a loan (which is a smart thing to do). If not, you'll begin the loan application process now.

The lender inspects title history and orders a property appraisal. The lender needs key information about the property before granting a loan. This is when potential problems can come to light. For example, the appraisal could show a lower value than the purchase price, or the lender could have trouble finding comparable homes. Also, the title search could turn up liens or other problems.

A home inspection takes place. You'll hire an inspector – generally, your agent will suggest one, or provide several options – to check the home and point out minor and major problems that should be fixed before closing. At this point, you still have the option of backing out of the deal. Through your agent, you'll submit a list of requested work, and the sellers have the option to complete the tasks, do some of them but not others, or reject the request. The sides will negotiate until reaching an agreement.

Removing contingencies. If the house passes inspection, appraisal and title search, and everything is good to go, then all contingencies can be removed, paving the way to a closing.

Closing time arrives. Once contingencies are removed and financing is set, all parties sign a seemingly endless stack of documents, and the transaction closes.

Packing begins! When the final signatures are in place, it’s time to put down the pens, shake hands, exchange smiles and start packing for the move!