Q & A: What Areas of a Home Add Appeal?

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I constantly hear people talk about curb appeal, but isn't the inside more important to people than the outside? After all, that is where they actually live. My husband and I want to sell our home, but it needs some updating and we are going to make some updates before we list the house. Where should we put our money? Outside? Bathrooms? Kitchen?

A home's "curb appeal" includes the home's total package. As a seller, it is important to prep your home so that prospective buyers have a positive connection with your property. Consider some fresh paint on the outside and attractive seasonal plantings; as well as painting the inside if needed. De-cluttering and organizing closets are helpful too. Check the prices and features of comparable properties currently for sale in your marketplace and speak with a real estate professional to determine whether it is prudent  to invest in renovating the kitchen and baths. 

I am looking to buy a home. I don't plan to stay there long so I need to make sure the home I buy will also be good for resale value. Does not having a basement or a garage decrease the value? I am looking in New Jersey suburbs. 

When purchasing a home, it's advisable to research what is selling in the neighborhoods in which you have an interest. Features such as an enclosed garage and a full basement, finished or unfinished, are more desirable than those without them, and do generally add value to your home. 

If I am paying higher property taxes on a finished basement and additional full bath in the basement....Then why is that not considered added value to my house when selling? And why can't I advertise such when selling?

I'm not sure where you are getting your information, but in most cases a finished basement does add value to a house compared to a house with an unfinished basement. However, it is generally not considered equal in value to the living areas above it so it should not be included in the total square footage or the total room or bathroom count of the house. That doesn't mean that the amenity doesn't add value. Think of it as a separate amenity that has the potential to provide additional value to your home.

If I want to help my credit score should I pay off all my credit card balances & my car loan?  I heard high balances on credit hurt scores?

This is an excellent question. Many individuals get confused when it comes to high balances on different types of credit and the impact they have on credit scores. High balances drop scores most when they are on "revolving credit" accounts. Revolving credit is credit cards, overdraft on a checking account, and some lines of credit. High debt on car loans, student loans, and mortgages have less of an impact on credit scores than revolving credit balances do. Paying the revolving credit balances down as low as possible is the best step to take when trying to improve credit through balance reduction.

Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to: Reporters@WPCnews.com