Kitchen, bath remodeling projects add resale value

Whether you’re moving on or staying put, minor face-lifts will freshen a home.

Here’s a true story. Our friend Dan was getting his house ready to sell. The screen in the front door had a hole for, oh, three years running. He took the screen to the hardware store, had it fixed and reinstalled it that afternoon. Looking at his new screen door, Dan wondered why he didn’t do this easy fix three years ago.

Most of us have those little, nagging projects that we’ll take care of next weekend, but the weekends fly away and all of a sudden, if you decide to sell your house, they add up. Even if you’ll stay put for a while, projects big and small will have a financial impact for eventual resale.

Kitchen and bath upgrades still have good returns, according to Remodeling magazine’s latest cost vs. value analysis. A kitchen remodel has the potential to recoup 78.3 percent on the initial remodel investment. However, this return is based on minor upgrades, not a total kitchen renovation. Upgrades include energy efficient appliances, cabinet re-facing, new countertops, resilient flooring and a quality sink and faucet. These types of changes present the kitchen as fresh and well cared for.

Bathrooms also bring a good 71 percent return. Again, it’s freshening up what you already have, not necessarily going the addition route. Buyers like jetted tubs, stylish countertops with upgraded sinks and faucets, and new tile. Even re-grouting, sealing and caulking the existing tile will go a long way to impress a potential buyer.

Some of these projects might fall under the do-it-yourself category, but hiring a contractor to do the work efficiently and according to code is a smart idea. So, where to start? Personal references are very reliable and you can see the final work. Check with the local professional homeowners and builders associations, plus the Better Business Bureau for any complaints.

When you have selected a contractor, ask for documentation that the contractor has the required licenses, insurance, lien protection and workers’ compensation. You also want to know who will do the work and if the contractor is subcontracting some of the project.

Whether you are considering selling or staying, do the projects for yourself so that you may enjoy your home’s fresh new look.

Next time we’ll explore ways to go green for the face-lift project. Green makes sense and cost-effective now and in the future.

Check out our remodeling returns information.

Written by Myra Vandersall

Upgrades for the best return in resale

Exterior remodeling projects under $14,000 have the best return on investment

First impressions count. Increasing your home’s curb appeal outside bring potential buyers inside.

Preparing your home for sale in 2010 means planning ahead now. The good news is selecting the best improvement projects to increase your resale value and return on investment can be some of the least expensive. The most recent findings in the 2009 Remodeling Cost vs. Value report that eight of the top 10 projects in terms of costs recouped were exterior jobs that came in under $14,000. The report is published in the January 2010 issue of REALTOR® Magazine.

The least expensive but biggest on return is a new front door, which proves once again that first impressions are vitally important. A mid-range entry door replacement can garner a 128.9 percent return on investment, based on a national survey of 80 U.S. cities, and will welcome potential buyers into your home. Other exterior projects with a high return are certain types of window and siding replacements and adding a wood deck. The least profitable projects are home office remodels and sunroom additions.

Overall, a sensible and pragmatic approach to improvements is the way to go. Ultra-expensive remodels and exotic additions just won’t make a good return and will deflect buyers who are looking for value in today’s markets.

That said, there is one exception. Increasing living space is a good bargain and the addition of an attic bedroom, which can cost up to $50,000 on a national average, could be a good move. The rate of return on that project is better than 100 percent.

Here are more ideas for low cost improvements that will increase your home’s salability.

Increasing living space gives the buyer a sense of more value. Instead of putting a lot of effort into a home office, show your buyer that the space can be a bedroom. More bedrooms increase the sale price. Open floors plans are big now. Consider removing a non-weight bearing wall to open up the space between a kitchen and family room.

Kitchen and bathroom upgrades are well worth the effort. Replacing backsplashes and tile is an economical way to refresh either room. If you want to go granite for your countertops, consider granite tile instead of slab. Using tiles can be a $300 material cost instead of $5,000.

New or replacement cabinet fronts will impress potential buyers. Install rollout trays in the kitchen for better organization and give the buyer a sense of more space. A new medicine cabinet in the bathroom, plus light fixtures, an inexpensive vanity and faucets will make your bathroom new again.

Putting thought and coordination into your remodeling plans now will reap huge rewards in the spring.

Written by Myra Vandersall

'Psychological' Blueprint Helps House Hunters

Environmental psychologist Toby Israel, author of a new book, Some Place Like Home: Using Design Psychology to Create Ideal Place, says people’s childhood homes have a profound effect on what kinds of homes they like best.

Before anyone buys, builds, rents or remodels, Israel believes they should consider what kinds of living spaces satisfy them, she says.

One exercise she recommends for anyone searching for a home is to draw a timeline of all the places they've lived for six months or more and circle those that they liked the best, then describe why. She calls the result a "design psychology blueprint" that can help a real estate professional identify what a client really wants.

Source: Star-Tribune, Jim Buchta (03/14/2009)