|
A GREAT
INVESTMENT-IMPROVING YOUR HOME
Why Not Renovate?
What if you stayed and renovated? You could build
out and/or up while saving $10,000+ on a move and stuff the 6% broker
commission. Investing in your present home would be a wise decision from an
economic standpoint as house prices invariably rise faster than any per-square
foot cost of renovation.
Unlike a stock certificate or t-bill, the
investment in your home can easily be tapped into and is much less costly than
borrowing against stocks or other assets.
Will Renovation Pay
Off? The question now becomes how
much will it cost? That largely depends on just what will the project consist
of. Adding a family room, redoing a kitchen or bath, finishing the basement or
turning the master bedroom into a suite are all fairly good bets as homeowners
on average recoup 70-80% of their expenditures since those are just what most
buyers are looking for. Building a home office, by contrast, brings you about a
54% return.
In neighborhoods of $400,000+ houses,
a new or renovated bathroom may run $30,000+ and a first-class kitchen $40,000
to $70,000, recouping on resale 140% and 138% respectively according to
estimates compiled by various remodeling magazines. Costs vary with the area and size.
The higher the home price, the more amenities expected by the buyer. In
California, even a no frills bath returns 71%; a no frills kitchen 115%; and a
mid-level kitchen 95%.
The Kitchen - It’s Where We Now “Live”.
Though we cook less frequently, guests no longer congregate
on plush couches in a formal living room. Instead, they gather in the
kitchen, which has become the heart of the home. They like to relax around
your island, sip vino and watch as you chop and dice away.
Because of this, a kitchen face-lift is
the best improvement any homeowner can make.
Today’s kitchens are all about utility
and new trends. Some of the latest innovations include warming drawers to keep
dinner at the perfect temperature until all family members are home; a faucet
behind the stove to fill the spaghetti pot without sloshing water; waist-high
beverage doors so junior can pour his own juice; and appliance garages which
hide everything from the coffeemaker to a Cuisinart. Such accessories or gadgets
du jour are fun to have but they must come after the essentials such as
flooring, cabinets, countertops, and top of the line appliances.
Even an average-sized kitchen renovation
will run $40,000, and that’s if you settle for refaced (not custom) cabinetry;
laminated countertops (instead of granite or Corian); and mid-price sinks,
appliances and flooring.
The more elaborate dream kitchen will be
in the $60,000-$70,000 range. For these, here is where the smart money is being
allocated:
|
Cabinets in cherry wood or maple
are the best choices but will eat up more than 40% of your
total budget. You will also have to select among stock, built-to-order custom,
or semi-custom (pre-fab) with the possibility of some customization.
|
|
Double Ovens by Viking.
|
|
Cooktop by Viking or Six Burner Stove by Viking
|
|
Hood/Vent by Décor
|
|
Double Sink (One Large and One
Smaller)
|
|
Warming Drawers by Kitchen Aid
|
|
Large Refrigerator by Sub Zero 8.2
|
|
Dishwasher by Fisher
|
|
Freezer Drawers by Sub Zero
|
|
Granite Counter Tops
|
|
Herb
Window |
Your kitchen island can serve many
functions by adding warming drawers; a pizza oven; a sink; beverage cooler; and
wine cooler with sink. Other hints may be cabinets that roll out with a separate
pantry; cork, wood or tile flooring; deep sink with pull-out faucet; garbage
disposal; instant hot water taps; built-in-microwave; and appliance
garages.
Bathrooms - Our Retreat From
Everyday Life. Since we retreat to our baths to relax, bathe,
meditate and prepare, they represent the second most important and smartest
improvement a homeowner can make. They do not come cheap and it makes sense to
go all the way as they are truly offshoots of the boudoir with such features as
movie-star lighting, Jacuzzis for two, and his-and-her commodes
Here are the tips for today’s bath:
Oversize Tub for two. The new and
relaxing Kohler Chromatherapy bubbles when activated and changes colors from
lighting inside the tub, giving it a soothing, romantic feel. This should be
sunken into a marble base with a separate shower stall and a larger water
heater, as well.
His-And-Her Water Closets are
featured in the newest homes. These are being constructed with a toilet (or two)
separated from the bath in individual rooms with small chests to house
necessities and magazines.
Showers can be chosen from steam,
multi-heads, needle spouts, or those approximating rainfall. The most expensive
have major jet systems hidden in the wall.
Faucets and other hardware are
individual choices but, for all practical purposes, you get what you pay for.
While they may look alike, less expensive sets are apt to drip sooner and be
unreliable. Pay attention to how the finish reacts to your water. Satin nickel,
for instance, is least likely to spot with hard water.
The ultimate looks are glass block walls
you can walk around in and a seamless glass door with brushed nickel hardware.
Walls of solid glass and seamless edges are equally nice.
Other Possible
Renovations . Here are some additional areas to improve your home
paraphrased from various articles appearing in major home and financial
periodicals.
Family-Room Addition will return 71% of
its cost at resale. A large entertainment center with a flat (plasma) screen TV
and surround sound for the cutting edge for music are the latest. Other musts
include comfortable, great looking furniture - divans, chairs, end and coffee
tables. A bar to entice adult guests should include a wine closet-cooler,
icemaker and plenty of storage for the nuts, napkins,
etc.
Master Suites , where the homeowner
relaxes and feels secure, are an absolute must for resale as they recoup some
89% of their cost but don’t come cheap, running approximately $60,000. Here are
some features expected in today’s marketplace: his-and-her closets with all the
trimmings; window seats with storage units; top line mattresses; an
entertainment center to house the TV (unless it pops-up on hydraulics), DVD
player and the VCR plus any stereo confined for this suite only rather than
shared with the common areas.
The total look for this highly important
room is capped by bed linens, drapes and matching spread and pillows. (It is
advantageous to have the heating and cooling units separate from the common
areas of the home.).
Attic Bedroom is usually not a
high priority item as it returns about 65% at resale. Ventilation and heat to
make this room functional can be tricky. When windows are added, it is critical
to follow the design of the house.
Two Story Addition is most
important when growing families are involved. The value comes from its use and
how it is incorporated into the home’s original design and usually returns 65%+
of its cost upon resale.
Window Replacement can be used to
borrow space, bring the outdoors inside, and add necessary light. Removing the
old panes for the new improves the appearance of the home and is a relatively
inexpensive improvement, recouping 68% of its cost. Besides the looks, there is
also an efficiency factor in relation to heat and air-conditioning. Skylights
are most important in small areas, dark hallways or for an effect in a room due
to the light flow.
Deck Addition is the next best
thing to a walk in the woods as sunlight, fresh air and vegetation exert a
subtle, subconscious pull. This is like borrowing a room from the outdoors,
extending the house, providing a comfortable place off the den, kitchen and
family room, making it all look much larger. Since it’s basically a bell n’
whistle item, a deck doesn’t have to be elaborate but you can still plan on
recouping approximately 54% of your investment. In addition, it often is a huge
selling point for those who might be sitting on the fence.
Home Office can land a sale as a growing number of
people work out of their house. This type of remodel ranks the lowest of
any of the projects on the list. The estimated return is now 65% but will
increase as the need grows. It’s a quality of life decision with its
importance depending upon you, the current rent at your existing office
and how many drive miles it takes to get there.
|
)
