Smart Buying
Remodeling That Makes Sense
The price of materials is rising, so pick your project carefully.
From Kiplinger's Personal Finance magazine, November 2005
Edgecomb says that whole-house remodels make up a big part of his business. "People say that they can't find what they want at a price they can afford," he explains. "They come to us pretty frustrated." His best tip: When changing the exterior, change the entire exterior to make it uniform. That's more likely to give the house a custom-home look.
Some improvements will be important to you but may have little resale value. That big, bad jet tub, for example, may not reap much, if any, return on the resale market, real estate brokers say.
If your community is still a sellers' market, you may be able to unload a home with deficiencies, such as an outdated kitchen or too few bathrooms. But once a market turns to favor buyers, those homes will languish unsold.
Susan Anderson, branch manager of the Coldwell Banker Residential Brokerage near the Schreibers' house, says home prices in Fallbrook have leveled off recently. But she says homes that are priced in line with the market and in good condition are still selling quickly. "People look at kitchens and bathrooms, and if they are done well, you can get your money out of that."
Here's what the experts say buyers prize most:
Kitchens. Anderson -- and all the brokers interviewed -- consistently mentioned one popular item: kitchen countertops made of granite or a quartz-based synthetic, such as Silestone or Zodiaq. At about $50 to $80 per square foot, the quartz-based surfaces are similar in price (and sometimes in appearance) to granite. Both are far more popular with home buyers than laminates, such as Formica, which are still acceptable in entry-level homes.
Stainless-steel appliances appeal to many buyers. But relatively few in Anderson's market are willing to pay extra for top-of-the-line professional appliances, such as a Viking range, which can cost $10,000. For that to pay off, says Anderson, "you've got to find a gourmet."
Jack Cotton, a manager for Sotheby's International Realty on Cape Cod, in Massachusetts, recommends some good old-fashioned Yankee thrift when it comes to updating kitchens. "Some of the older houses actually have nice wood cabinets," Cotton says. You can rejuvenate a kitchen simply by sprucing up vintage cabinets with new hardware and a coat of clear varnish, and replacing the existing countertops with granite. You'll save big because wooden kitchen cabinets are expensive to replace.
Bathrooms. The old-cabinet, new-countertop trick works with bathrooms, too, says Cotton. "It revitalizes your whole bathroom instantly."
Even if you prefer to take showers, make sure there's at least one bathtub in the house. "There needs to be a place where small children can be bathed," says Anderson. Large walk-in shower stalls in the master bathroom are especially attractive to mature home buyers.
You need to know your market, however. In the Minneapolis-St. Paul area, for example, move-up buyers want both a luxurious tub and a separate shower, according to Scott Carlston, a local Re/Max agent. Perhaps they need to shake off the cold of Minnesota winters.