As spring gets closer and closer, now is a good time to start considering what home renovations you want to undertake! Remodeling can give you the added or different space you need now, but its important to carefully consider the resale value of any project you undertake and stick to a budget. The spring weather makes it a great time to begin. With the longer days and nice weather, contractors find more time and energy
to complete projects. Some remodels allow for a bigger payoff than your original investment, while others might be needed just to keep the resale price on par with the neighborhood.
My hope is this information will help you evaluate the potential payoff of your remodeling project, and can show you how to budget for it. Let this act as your guide for how much the top remodels can return in resale value, which style trends you want to go after and suggestions for tackling these projects.
Whatever remodeling project you take on, may it have a happy and high-value ending!
WHAT TO REMODEL
When you’re ready to nail down your plans (so to speak), here are suggestions from industry experts:
Add usability with dual sinks and cooking stations. Add aesthetics with commercial-quality and stainless steel appliances, stone or stainless steel countertops and ceramic tile backsplashes. Add space with a breakfast nook or walk-in pantry. Add livability with a computer desk, mudroom or hobby area.
Add light with skylights and glass blocks without losing privacy. Add space with a walk-in dual shower, vaulted ceiling, recessed medicine cabinet or curved shower curtain rod. Add functionality with twin sinks or vanities. Add aesthetics with ceramic tile or stone flooring, stone countertops and heated towel bars and floors.
Remodeling the exterior is as much about maintenance as it is about curb appeal. Vinyl siding looks fresh and tidy year after year with minimal upkeep. With stucco siding, a new polymer covering can be sprayed or troweled onto a fiberglass mesh base.
New windows will help you realize additional savings in monthly utility bills. Prospective buyers view windows as they do other structural items, so failing to update old ones can result in lower—or no—resale offers. Newer styles include seamless bent-glass corner windows, curved glass and casements with no center stile.
Maximize your remodeling dollars! According to Remodeling Magazine, the projects listed below were the top projects that added the greatest amount of resale value to a home.
|Project||Job Cost||Resale Value||% Cost Recovered|
|Bathroom Remodel: Midrange||$12,918||$10,970||84.9%|
|Bathroom Remodel: Upscale||$38,165||$29,529||77.4%|
|Minor Kitchen Remodel: Midrange||$17,928||$15,278||85.2%|
|Major Kitchen Remodel: Midrange||$54,241||$43,603||80.4%|
|Major Kitchen Remodel: Upscale||$107,973||$81,896||75.9%|
|Siding Replacement: Upscale||$13,149||$11,573||88.0%|
|Siding Replacement: Midrange||$9,134||$7,963||87.2%|
|Attic Bedroom Remodel: Midrange||$44,073||$35,228||79.9%|
BEFORE YOU BUDGET
➤ Imagine the new space and make sketches. It’s easier to plan something you can see.
➤ Explore. Talk to people who have done a similar renovation. Read books, magazines and Web sites, get onto renovation listservs, watch instructional videos. Take notes!
➤ Think ahead. Is the renovation intended to add value when you sell next year? Then pay special attention to assessing the value of the house and neighborhood. Add comfort or pleasure?
Accommodate a growing or shrinking household? If you plan to stay for at least 10 years, almost any renovation will be worth its cost.
THE BUDGET PROCESS
➤ Figure out how much money you have to spend on a remodel without straining other budgets.
➤ Figure your debt-to-income ratio. If you’re planning to borrow, you need to know whether you can handle the extra debt.
If you’re working with an architect, designer or contractor:
➤ Bring your drawings, budget and other figures to them for help with cost breakdowns.
If you’re going it alone, the following will be your responsibility:
➤ Estimate project costs for materials, labor, permit fees and so on.
➤ Create a timeline to help contractors plan the project and help you budget efficiently.
Including subcontractors. Multiply wages by estimated hours for each worker.
(Remember payroll taxes and workers’ compensation insurance if you do the hiring.)
Fees charged by contractors and subcontractors, such as electricians.
Lumber, nails, paint, wallpaper, insulation, flooring, tiles, plumbing fixtures, cabinets, countertops, heating and ventilation.
|Tools and EquipmentAll tools purchased and rented for the project, from hammers to post- hole diggers. Also includes safety equipment such as goggles, hardhats, ear mufflers, etc.||$___________|
Contact the city planning department. Contractors may handle this for you.
Window treatments, light fixtures, cabinet hardware, etc.
|Repairs Due to Remodeling
Repairs needed resulting from there modeling, such as patching the wall after plumbing vents are moved or replanting lawn where equipment had been kept.
Trash bin rental, hauling fees, dumping fees, removal service.
Includes cost overruns as well as upgrades, changes, supply shortages, weather delays, miscommunication, etc. Budget up to 30% of subtotal.
|Add Contingencies to Subtotal for TOTAL||$___________|