In last weeks Wall Street Journal there is a story on how the returns on remodeling have changed. Some snippets and their implications for Maui real estate below:

 The slumping housing market has made remodeling much trickier. When house prices were climbing ever higher, buyers knew they could spend big bucks to expand their homes and still make a profit when it came time to sell. But today, a buyer who spends unwisely on remodeling may be simply digging a deeper hole when it comes time to move...Further complicating the equation: Even though housing prices are slumping, construction prices have continued to climb. That means adding that new bath will cost more, even as it contributes less to the resale value.

In general, our advice today for Maui real estate owners is that other than "sprucing up," unless you are going to do a top to bottom remodel with exceptional materials? Don't do it. You are as likely to turn off buyers as turn them on with a partial remodel and if they think the rest of the place needs it anyway? They are going to do a gut job. You are better off financially lowering your asking price than pouring new money into a property. For details, contact us.