By Shayla M. Sharp

Knowing that the perceived value of your home is important, the next step is deciding how you can best increase that value. Deciding where to put your time and money can seem complicated, but understanding three key points--ugly, beauty and smart--will make it much simpler to make a decision.

1. Ugly

Before you work on moving your value up--avoid the value of your house going down! Perceived value can be increased, but, unfortunately, it can also be decreased. What decreases the value of a house? In a word, ugly. That's right--ugly. Ugly appearance and ugly repairs have a lot to do with the lowering of your house values.

When people see your house, do they shudder? Do they offer $20,000 less than the asking price? You might be surprised that people try to sell a house with overgrown lawns, garbage in the yard and a mile long list of repairs, but they do. You might even be one of those individuals thinking you can just sell your property "as is", but you should also realize that you will not get the full value from your property if you do. Why? When a buyer searches for a home, they have certain expectations--things should work properly and they should be able to move in without too much hassle. Everytime a buyer finds something that should be repaired, replaced or cleaned, they mentally knock of some of the amount they are willing to pay for your property. The amount reduced in their mind is often higher than it would actually cost because not only do most people overestimate costs, but the hassle of doing the work themselves increases the value of that item in their mind.

How can you get rid of ugly? The first task is to clean up. Start with the outside--this is, after all, where buyers will get their first and most lasting impression of your property. Mow the lawn, get rid of the weeds, sweep the driveway and spruce up the outside. This can include planting new bushes, trees and flowers or a fresh paint coat. Clean up the trash--put away the stuff you're keeping, recycle what you can and then throw away the rest. Look around the outside for repairs that need to be made. Are there cracks in anything? Does the roof need replacing? Anything falling down or rusted? Look for what is wrong and fix it. Often a little elbow grease is all that is necessary to help the outside look inviting and pleasant.

When you get to the inside of your house, apply the same rules--clean up, declutter and repair. Pick up your stuff and put it away. Get rid of things you've been meaning to get rid of and, if necessary, put your excess possessions into a storage unit off site while you are trying to sell. Dust, vacuum and wash everything from floors to windows. Get the cobwebs out of the corners. When a buyer sees an unclean and non-maintained inside it only makes them wonder how much else has been neglected.

Overpersonalization can kill a sale. Bright red might be your thing, but it definitely won't be everyone's. Lots of knick knacks all over the rooms can also be a turn off. You want a buyer to be able to imagine themselves living there--not see how you live. (That themed room you created to match your favorite vacation spot should go as well.) Again, look for things that are wrong and fix them. Fill in cracks and nail holes. Stop the squeeks in the doors and the leaks in the faucets. Make any necessary repairs to the electrical and plumbing. Replace things that are worn and horribly outdated like carpeting and countertops. Even the most modern and expensive home will sell for less than its actual value if it is seen as ugly. Neat and tidy translates to well maintained and in good condition even when a home is older or a little out of date.

2. Beauty

Second, work on increasing perceived value one step at a time. Counteract ugly with beauty--beautiful spaces and conditions! Beautifying your location does not have to be done all at once. Nor should it wait until you decide to sell. In fact, doing this can hurt your pocketbook instead of helping. While, under ideal circumstances, your house would be maintained and updated as you go, we all know that often this does not happen and repairs build up. Look over your current budget and your list of needed repairs and updates. Coordinate them so that each month you do a few things to improve your house and property. By doing it this way, you have time to take advantage of sales and stay within an affordable budget. Improving your house over a period of years also allows inflation to be your friend instead of your enemy.

Updating main rooms such as the kitchen and bathrooms can go a long way towards increasing the perceived value of your home. Why? These are main rooms that to update takes money and time--in other words, a hassle. Does this mean that you should spend $50,000 to change your kitchen? Not necessarily, but we'll get to that later. It does mean that your main rooms should be updated from the 1970's. Modern appliances and features help the kitchen to sell the house faster and higher than one still decorated in olive green and orange paisley. Old linoleum should be removed as well. You might be wondering why someone wouldn't just want the lower price and get to pick it all out themselves according to their own tastes and that's a good question. The answer boils down to immediate gratification. Buyers don't usually want to go through the work of hiring experts, shopping around and installing. They do want to move in and start entertaining--or at least that's what they think they want. The more move-in ready a house is, the higher its perceived value is.

What are buyers looking for? Today's buyer has a lot of houses to choose from, so they can be a little picky when it comes to which one they choose. Most people want a house that feels open and light. This lets them feel like they are getting more house for their money. So choose your colors and window treatments to help increase the feeling of openness in a room. There is also a big trend towards natural materials. Whether that means wood floors instead of carpet or stone countertops, buyers are looking for the luxurious feel of the natural product. At the same time, individuals are becoming more saavy on the need for house features that are green--or environmentally friendly. These products are not just about saving the Earth's resources, but also about saving money on energy bills. Make sure you're insulation is adequate for the area and that your windows are energy efficient. Give your house a fresh feeling with updated rooms, new paint and proper window treatments. Even something as simple as having the carpet cleaned can make a room feel newer.

Don't forget to spend some of your time and money to beautify the outside. After all, this will be a buyer's first impression of your property. Add value and selling potential to your property by landscaping your yard. Remember, a healthy mature tree can add $1,000 or more to your property value, so start your landscaping plan early on so that your plants will have time to grow and mature before the time to sell comes up. A good landscape plan can easily be broken into a five year plan with trees and bushes being planted in the first year. Even if you don't have five years, landscaping adds to the value if done properly. Remember, lush and green will always sell better than stark or neglected. Use plants and landscaping appropriate for your climate.

3. Smart

Third, put your money where it counts. If your home's perceived value is based on what someone else sees in the property, give them something worth seeing! However, there is a fine line between improving and overspending. Be careful how you apply those improvement dollars and you will see the return on your money.

According to the Harvard Joint Center for Housing Studies, in 2001, homeowners spent $166 billion on home remodeling! Over three-quarters of that was spent on improvements with the rest going towards repairs and maintenance. "Families that spent more on home improvements also realize the greatest rates of price appreciation," the Harvard study reported. "In many regions of the country, homeowners recover as much as 80% to 90% of the cost of home improvements in the form of higher home values."

Steve Berges, author of 101 Cost-Effective Ways to Increase the Value of Your Home, says "Visibility adds value. The improvements that are most visible are the things you need to focus on." Berges recommends that, when it comes to selling, a higher priority should be on what can easily be seen to get the biggest return for your money. "People expect the foundation, plumbing and wiring to work," Berges states. "If they don't , they detract from the value. But fixing them to bring them up to code doesn't necessarily add value." So, replacing a roof makes economical sense because buyers will see that before they ever walk into your house--and a roof takes up about one-third of the view when looking at the house.

You don't have to break the bank and pull out all the stops when making improvements either. Most of us do not live in the Hamptons on Long Island, we live in suburban America. Be careful not to over-improve for your neighborhood. If you are improving your property way beyond what the surrounding houses are, you may find it difficult to recoup that money spent. Why? People will expect a certain price range for particular areas--while one neighborhood might easily sell homes over $1 million another might have homes priced under $300,000. Putting in granite countertops and brick paver driveways might make sense for the $1 million house because someone will expect those extra luxuries. However, the cost of installing them for the $300,000 home will not be recouped because buyers for that neighborhood aren't willing or able to pay the price.

Not sure what improvements to make? Talk to a licensed appraiser or an experienced real estate agent, they will know what the neighborhood average is and be able to offer valuable guidance to help you avoid ugly, but still get smart.

To learn why perceived value in your house is so important, please read the first part of this Altering the Value article series.

• Altering the Value of Your Home: Part One

Article first published at NWAbode.com in July 2009.

Shayla M. Sharp, owner of White Dragon Studios and freelance writer, enjoys design in all its aspects whether she's designing jewelry or trying to get two-year olds to hold stilll for a portrait. She lives in Oregon with her best pal Stars, a border collie mix, where she plants vegetables and flowers for him to run over.