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A Competitive Edge

Will you get your money back when you sell your San Diego foreclosures and REO's? That depends. Remodeling magazine's "2007 Cost vs. Value Report" suggests that with the right project, your returns can be substantial when your San Diego foreclosures and REO's are for sale. National averages show that home owners recouped 70% to 80% of the cost of most projects in 2007 -- down about ten percentage points from 2005. Remodeling says that represents a return to normal levels after the housing-boom years. Read these tips, and budget wisely when you remodel your San Diego foreclosures and REO's.

You'll usually recoup more of the cost of a midrange version of a remodeling project than an upscale version. Rebuilt kitchens and bathrooms show the most promise for good returns. And current trends suggest that bigger is better. Remodelers are knocking down walls to replace little-used formal dining rooms and guest rooms with expanded kitchens and bathrooms. With the increase in room size come larger, professional-grade appliances in the kitchen and bigger showers and tubs in the bathroom.

But don't over-improve. If you add high-end materials to a mid-price home, you probably won't get back as much of your cost. Replacement projects -- windows, siding and roofs -- tend to have the highest returns of all.

Staying put for a few years will increase your chances of covering your costs. But even if you don't get all your money back, the improvements are likely to tip buyers in your direction while the market recovers. That's what Julienne Stathis is hoping. As a military wife who has moved three times in the past ten years, she put re-sale value at the top of her priority list when buying.

After she and her husband, Drew, bought their San Diego  home in 2001, they undertook a series of updates to increase its value. A wood floor replaced the carpet on the first floor, and tile replaced vinyl flooring in the kitchen and laundry rooms. The Stathises bought all-new kitchen appliances, finished the basement and had professional landscaping done.

Their most recent project is a bathroom redo. The updated bath features a Jacuzzi, a shower with recessed body sprays, cherry cabinets with granite countertops and new fixtures all around.

The project total came to $37,500. The family is planning to move again soon, and Julienne is optimistic that the new bath and other improvements will give their home a competitive edge. "I'd rather put my money into the house instead of clothes or cars," she says. "We will get the return when we sell, and in the meantime my family enjoys our house every single day."

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