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Fritschen suggests that other remodeling projects typically important to people who have decided to stay put include installing new interior doors, installing new crown molding and baseboard and laying new carpet and refinishing hardwood floors.
If your home is already the grandest or largest in the neighborhood, there is little chance these happiness projects will also make your home appreciate in value. But, again, that was not their purpose.
Projects that May Help with Resale
If you’re aiming for renovations that may help in any later resale effort, remember that most people still judge a house by its exterior.
“Particularly in markets where inventory levels are high and buyers have many options, curb appeal and how a home presents itself from the street can be very important,” says Stephanie Singer of the National Association of Realtors. “This is where buyers form their first impression.”
Singer says that a 2007 Profile of Buyers’ Home Feature Preferences showed that “three of the four projects with the highest national percentage of costs recouped were exterior upgrades. The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements returned 85 percent and 81 percent, respectively.”
| | | |  | |  | | | | | Good Time for Remodeling
While the mortgage crisis may be bad for new housing starts or sales, it might just be a good time for home remodeling for the reasons we have outlined above. If you do decide to remodel, remember these tips:
• Project prices may be better now than a few years ago. Prices aren’t low, but, with so few housing starts, contractors want to keep their crews busy and are looking for work. Get a start on finding contractors with Renovation Experts, a network of remodeling contractors. Regardless of how you find a contractor, thoroughly investigate them. Check them online, for example, through the Better Business Bureau.
• Minimize the cost of your remodel but still build quality, says Fritschen. A poor-quality remodel may reduce the value of your home. However, a very expensive remodel using the most expensive service providers will make it harder, if not impossible, to recoup your costs. • Whatever the economic times, how you analyze your project remains the same. “Interest rates go up and down, home values go up and down, remodeling costs go up and down but the process of how to consider your options remains the same,” says Fritschen. “The benefit of the book and the free calculator on the Web site www.remodelormove.com is that homeowners are shown how to carefully compare their options and then make the right decision.”
• If you would feel more comfortable with a second opinion, consider talking with a Realtor. “Realtors build their business through long-term relationships, so most of them would welcome the opportunity to provide information and guidance to homeowners as a source of local market knowledge and expertise,” says Singer.
| | | | | | | | | | | Beyond the façade, however, preferences vary depending on the age of the buyer, first-time versus repeat buyers and geographic region, says Singer. For example, only four percent of buyers ages 18 to 24 thought a fully or partially finished basement was very important, compared to 17 percent of buyers ages 35 to 44—many of whom presumably have children or teenagers who might use that space. Similarly, 16 percent of buyers in the Northeast thought fencing was very important compared to just 53 percent in the West.
A home’s overall condition, availability and condition of surrounding properties, location and regional economic climate are all factors that influence a particular home's value. Singer says that's why when considering a remodeling project consumers should rely on industry professionals such as NAR’s Realtors who have the expertise and experience to help homeowners protect their investment.
Balancing enhancements with recouped costs can be difficult. Dan Fritschen, author of Remodel or Move? and creator of remodelormove.com, an online calculator, says he likes the 20 percent rule: If a project cost is less than 20 percent of a home’s value, then it may not necessarily be possible to recoup the cost but it is a manageable cost. If it is more than 20 percent, then it could be still a good decision, but a homeowner should spend more time analyzing what, if any, they will recoup from the remodel.
When thinking about projects that will help with resale, don’t forget maintenance tasks that can become projects of their own.
Check for plumbing leaks under sinks or in the basement. Check your home’s foundation for cracks. Make sure the surrounding ground drains water away from your house. Have your chimney checked for loose mortar or bricks.
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Text by Maureen Blaney Flietner
© 2008 BobVila.com
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