Home is where out heart is. It is where we spend most of our time and for most people it is one of, if not the biggest investment for them. As we consider projects that will make us fall in love with our homes all over again, we also have to consider the best way to invest that additional money. Naturally, you need to determine how much enjoyment you will experience from the home improvement of your choice, but you also need to assess how much value an improvement will add to your home.
Generally speaking, the bigger the improvement the more value is added to your home; however, not every project yields the same return on your investment when you sell. Knowing which projects to tackle can be determined by learning about the current real estate market and also by making realistic choices for your own family. One way of doing that is by asking for advice from professionals. Becky Worley, owner of Classic Cabinetry, approaches a project by getting to know the client. “In an interview, we learn about the way they live in their home and about the purpose for the remodel,” she explains. With this information and a clear picture of the client’s budget, the design can result in a successful project.
TOP DOLLAR RENOVATIONS
Classing Up the Kitchen
Families spend countless hours in the kitchen, and friends always seem to gather there, making the renovation of this room a great choice both for increasing the enjoyment of your home and ultimately for making it more saleable. But when it comes to “value-added” home improvement, just how much return can a home owner realize for a kitchen remodel?
The budget for even a minor kitchen project can total $20,000. The scope of the work might include refacing the cabinets with new drawers and doors, putting in new appliances, and updating flooring and countertops. The good news is that not only can you enjoy your updated kitchen, but the value of your home will increase almost immediately by 88% to almost 100% of the project’s cost. Other improvements cost very little, but can have big payoffs too. Paula McDaniel of Prudential Realty Center suggests letting the light in. “Add new light fixtures and remove sheers or window treatments that block natural light,” she says. Small changes can have big impacts on house hunters.
For those who are looking to put more…more time, more improvements, and more money… into their kitchen, the investment is a big one. The price tag for an upscale kitchen remodel can be $40,000 for a mid-range home and $80,000 or more for a house in the higher-end market. Depending on the kitchen, the value of your home will increase immediately by 70% to 90% of your investment. Some research suggests budgeting 10% to 15% of your home’s market value for remodeling the kitchen. Major kitchen renovations include upgraded flooring, commercial or professional grade appliances, improved lighting, custom cabinetry, and stone countertops. Granite is still the preferred upgrade for countertops, but for those who have already enjoyed this material, there are other options. “Alternatives like concrete, wood, marble, and soapstone are the new choices, according to Worley. “Designing an eat-in area for the kitchen is also a desirable feature for buyers,” she suggests.
Making a Master Suite Sanctuary
They are beautiful and desirable. They capture our imaginations during house tours and grace the pages of home improvement magazine. They are those magnificent master suites. While putting your remodeling dollars into creating a master suite may be soothing to your soul, it may not bring the return you’re looking for in your investment. Another consideration is that the choices you make when resale is likely to occur in 2-5 years are different from those you’ll make for your “forever home.” If adding a sitting area, large master bath, and walk-in closet, each outfitted with custom cabinetry and stone finishes is in your design, then costs may reach $100,000 and beyond, depending on whether structural changes are part of the plan. Generally, you can expect the value of your home to increase by 70% of the project cost when you sell, but this can be lower, depending on the market. That’s where getting good advice from a local realtor can help you avoid overspending on home improvement projects. Paula McDaniel thinks that now is a great time to remodel, even if you’re not ready to sell. “The market is down, but if you take the opportunity to remodel now, then when the market is ready, you are too,” she explains.
If resale is a higher priority than personal enjoyment, lower cost improvements like uncovering or adding hardwood floors and upgrading lighting can go a long way toward creating a more attractive master bedroom. Taking care of needed repairs, painting, installing new window treatments, and adding fresh, attractive bedding helps buyers imagine themselves relaxing in the space rather than thinking of changes they’ll have to make.
Building the Bath of Your Dreams
Money spent in bathroom remodeling is money well spent. Even minor remodeling makes for a good investment. Again, knowing the local market is an important guide in determining whether you should be improving an existing bath or considering an additional one. Expect to spend about $10,000 on a minor bath remodel, but on resale expect the value of your home to increase by roughly 85% of your investment. Replacing the tub, tile surround, floor, toilet, sink, vanity, and fixtures are included in this estimate, but these changes alone may add more value than a new bathroom would. Adding an upscale, 6-X-8-foot bath could cost upwards of $65,000 and the return is closer to 75% of your investment.
If you choose to create your dream bath, being aware of popular trends is a good way to make smart decisions in planning. Becky Worley sees a move away from jetted tubs. “Now it seems that bigger showers and steam showers are more desirable,” she notes. Becky also says that clients are beginning to put media on their wish list for the perfect bathroom.
Outdoor Rooms
Decks and patios are now designed as additional rooms for our homes, allowing us to enjoy the outdoors in indoor comfort. A mid-range deck addition done in wood comes with an average price tag of $9,000, but most of that comes back at resale with reports listing the return on your investment as high as 90%. Upscale decks using composite materials cost closer to $14,000 and the value added to your home is closer to 80% of your investment. A new patio with the addition of one of the very popular outdoor fireplaces makes a lasting impression.
First Impressions
While additions provide needed rooms and remodeling creates a better use of space, good design impacts that all-important first impression for guests or potential buyers. Marsha Yessick, owner of Yessick’s Design Center, says that interest, energy, and appeal make a first impression a great one. “Color, pattern, and texture create a ‘Wow” when people walk in,” she says. “Every time I do a job, I think about resale,” she adds. If only one room can be redesigned, Marsha suggests starting with the living area. “Whether it is a keeping room off the kitchen or a full family room, this is where you live and where you have guests,” she explains. Also at the top of her redecorating list are the master suite and the home’s foyer, the latter because of the first- impression factor. Marsha also emphasizes that good design is “timeless, not trendy, making a classic design work for 12-15 years or more.”
HIGH-IMPACT, LOW-COST UPGRADES
House buyers have plenty of options when shopping in today’s market, but making yours the one they choose doesn’t have to cost a great deal of money. Having an updated, tidy, clutter-free home is essential for resale. In fact, many of the most effective steps in selling your house would also help you enjoy it while you still live there!
Consider the curb appeal
Spruce up the landscape with new plants, especially flowering ones, and green-up the lawn. By clearing clutter in the yard, keeping the lawn and shrubs trimmed, and touching up any faded or chipped paint, you can make you house more appealing to shoppers. In addition, be sure to have house numbers that make your address easy to find.
Make it cozy
Paula McDaniel advises people to “build their nests.” By this she means to create privacy in open yards with the addition of evergreen trees. Even in new housing developments, this provides that comforting, homey feeling.
Eliminate distractions
While we love our personal pictures, they can take the eyes of buyers off the positive features of your home. Before putting your home on the market, take down personal pictures and keepsakes that make it difficult for buyers to imagine living there.
Clear the way
We all have those places in our homes that catch clutter and gather stuff. Clear horizontal surfaces of clutter, reduce magazine collections, stow sports gear, and hang up clothing. Be mindful of how you put things away as well; potential buyers will open closets!
Make it shine
Sparkling windows and polished surfaces brighten rooms and make potential buyers see your great house rather than seeing work to do.
Open the space
Rent a storage unit to hold furniture from overcrowded rooms. The cost is worth it in making your home show “bigger.”
Fix the problems
Repairing anything that is leaky, loose, cracked or crooked is great investment of time.
Remodeling projects impact daily life and family budgets, so becoming well informed about the scope of the work can make the inconvenience and expense easier to handle. While you don’t want to “over improve,” putting equity back into your home is one of the smartest investments you can make. “If people are skeptical about spending money, they shouldn’t be because these design changes increase the quality of life,” advises Becky Worley. Remodeling projects not only make your home more comfortable to live in, they also increase its value when the time to sell comes.
Sources:
Home Improvements That Pay
www.doitourself.com
Remodeling Online: Cost vs. Value Report 2007
www.remodelingmagazine.com
Make Your Home Investment Pay Off
By Dona Dezube
www.hgtv.com