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As the housing market has veered off course, so have many homeowners' remodeling plans. Retreating home prices and higher interest rates have made it tougher to borrow against home equity. Uncertainty about when the market will hit bottom has left many hesitant to spend money they may not recoup.
But those factors could also make this a perfect time to remodel.
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Contractors who once had backlogs of a year or more now find themselves with only a few projects in the pipeline. Subcontractors, facing a slowdown in new-home construction, are looking for remodeling jobs. "You have a better shot at getting someone experienced, and you can be a little more aggressive in scheduling the project," says Kermit Baker, director of the Remodeling Futures Program at Harvard's Joint Center for Housing Studies.
You may not pay a lot less because the price of materials and labor isn't coming down, says Bob Peterson, president of Associates in Building & Design, in Fort Collins, Colo. "But the cost of remodeling may never be cheaper."
A Competitive Edge
Will you get your money back when you sell? That depends. Remodeling magazine's "2007 Cost vs. Value Report" suggests that with the right project, your returns can be substantial. National averages show that homeowners recouped 70% to 80% of the cost of most projects in 2007 -- down about ten percentage points from 2005. Remodeling says that represents a return to normal levels after the housing-boom years.
You'll usually recoup more of the cost of a midrange version of a remodeling project than an upscale version (see the table on page 89). Rebuilt kitchens and bathrooms show the most promise for good returns. And current trends suggest that bigger is better. Remodelers are knocking down walls to replace little-used formal dining rooms and guest rooms with expanded kitchens and bathrooms. With the increase in room size come larger, professional-grade appliances in the kitchen and bigger showers and tubs in the bathroom.
But don't overimprove. If you add high-end materials to a midprice home, you probably won't get back as much of your cost. Replacement projects -- windows, siding and roofs -- tend to have the highest returns of all.
Staying put for a few years will increase your chances of covering your costs. But even if you don't get all your money back, the improvements are likely to tip buyers in your direction while the market recovers. That's what Julienne Stathis is hoping. As a military wife who has moved three times in the past ten years, she put resale value at the top of her priority list when buying.
After she and her husband, Drew, bought their Springfield, Va., home in 2001, they undertook a series of updates to increase its value. A wood floor replaced the carpet on the first floor, and tile replaced vinyl flooring in the kitchen and laundry rooms. The Stathises bought all-new kitchen appliances, finished the basement and had professional landscaping done.
Their most recent project is a bathroom redo. The updated bath features a Jacuzzi, a shower with recessed body sprays, cherry cabinets with granite countertops and new fixtures all around.
The project total came to $37,500. The family is planning to move again soon, and Julienne is optimistic that the new bath and other improvements will give their home a competitive edge. "I'd rather put my money into the house instead of clothes or cars," she says. "We will get the return when we sell, and in the meantime my family enjoys our house every single day."
Your Kitchen
If your kitchen is still functional but has an outdated feel, a few cosmetic changes can give it a new look. The best way to start is with a fresh coat of paint. You can also add a decorative backsplash. Depending on the tile you choose, the cost will range from about $500 to $1,500.
Just up the price scale are new knobs and pulls for your cabinet doors and drawers. Kitchen hardware runs from about $3 apiece to $40 apiece for handmade items, but $10 is a good price to target. In an average-size kitchen, knobs and pulls should cost about $1,200 to $1,500, including installation.
Last on the list of little things is lighting. If your kitchen dates to the '70s or '80s, chances are you have one main fixture -- and it's fluorescent. Replacing the main fixture usually runs $200 to $300 including installa-tion. But if you upgrade to recessed lighting and have to tear into ceilings, the cost rises dramatically. Recessed lights run $25 to $40 each and cost $150 per light to install. Tim Sweeney, of Sweeney Construction Corp., in Madison, Wis., says he often adds task lighting and accent lighting, such as under-cabinet fixtures.
Cabinets. If your kitchen is kaput, revamp the cabinets first because they are the most prominent element. You can refinish your current cabinets or reface them -- that is, put on new doors and drawer fronts and re-cover the frames with plywood stained or painted to match. Both of these projects can run into some serious money. Simply painting primed cabinets can cost $4,000 to $6,000. Refacing costs depend on the type of wood you choose (oak is the least expensive; maple and cherry come next) but can run from $6,000 to $15,000. New cabinets will cost a few thousand dollars to more than $30,000, depending on the type of wood and level of custom fit.
Countertops. Laminates have improved in quality over the years and run $25 to $50 per linear foot. But more people choose granite, natural stone or Silestone, a manufactured stone made from quartz and resin that ranges from $50 to $125 per linear foot. (Pricing includes installation but not charges for cutouts, such as sinks.) Kimberly Sweet, editor of Kitchens.com, notes that although granite is still popular, custom materials, such as recycled glass and concrete, are showing up in high-end homes.
Sinks. When you get a new countertop, it's a good time to replace your sink and faucet. Under-mount sinks are elegant and practical -- they offer clean lines and, because there's no lip to meet the counter, spills easily wipe into the basin. Most popular are heavy-gauge stainless-steel and cast-iron sinks, which cost about $1,000. The current trend in faucets is higher-arced spouts and single spouts with pullout sprays. Although about $200 will buy a good-quality model, prices ratchet up quickly; $1,000 for a luxury brand with all-stainless construction isn't uncommon.
POSTED BY: Tim Steiert (January 18, 2008 10:35 AM)
I recently replaced my windows and did extensive research. I found Milgard Windows to be the best value and I am extremely happy with my purchase.
POSTED BY: Stan Blought (January 22, 2008 12:53 PM)
I think Tim Sweeney & Paul Zuch need to be more specific & careful when it comes to dolling out advice on windows. I don't have experience with Marvin so I can not comment on their window. However as a builder, I've had major issues with both Pella & Andersen in the Florida market.
My Pella windows have wood rot within 3 years, and they are not accepting liability. Miami Dade codes are the most strict in the nation so I can assure you my part was done on the waterproofing of the opening & installation.
The Andersen windows, on the other hand have been causing me headaches since their double hungs are not vinyl clad, as I was told by the dealer, the sashes are a painted wood, only the frame is clad. NOT SUITABLE for FL. coastal conditions, with swelling & expansion concerns.
My advice would be to stick to the all vinyl if you are in a coastal market or a TRUE Aluminum clad wood with a warranty, Jeld-Wen has a 20yr against wood rot. Don't find yourself in my shoes with angry homeowners.
