Remodeling can add to the value of a home
By Jean Newton
As the price of homes continues to soar, remodeling has become a popular alternative for homeowners who would like to upgrade their homes but can't afford to move. "Remodeling can add resale value to the home, but it's important to check with your Realtor to get some advice before proceeding," said John Carman, sales manager at Coldwell Banker in Los Gatos. "You don't want to spend more than you can recoup, or over-improve the property for its location."
Carman believes location is a definite factor with some areas more conducive to remodeling than others. For instance, if your home is a tract home built 45 years ago, you need to be wary about improving above the level of the rest of the homes in your area. However, in a nonconforming area, as in Los Gatos where old cottages are being torn down and replaced with new homes, a higher-end remodel would more likely keep pace with the value of the neighborhood.
What to remodel and how much to spend are important questions homeowners need to ask. According to the National Association of Remodeling Industry (NARI), if you plan on living in your home 10 years or more, NARI advises spending as much as you can budget to create your dream home. But, if you plan on moving to another home within three years, you should limit remodeling plans to keep them in line with the average home sales price in your neighborhood.
"You wouldn't want to put all the bells and whistles into an older ranch-style home that would price it out of the rest of the homes in the area," Carman said. "It all depends on the price points within the individual area. A Realtor can help homeowners determine the low, medium and high resale figures that are driving the market."
Realtors can help with budget issues, as well as work together with the homeowner, architect and designer to give their recommendations on everything from floor plans to the selection of products that will add value to the home. Location, age, quality and even the use of space in the home are all factors to consider when planning a remodel that can affect future resale value.
While there is no specific formula for a dollar to dollar return on a remodeling investment, NARI states that home resale values increase when homeowners put their money into kitchen and bath remodels. Spurred on by a booming economy, standard design practices in new homes, as well as remodeling projects, now include home gyms, high-tech wiring, and three car garages in addition to state-of-the art-kitchens, and master bedroom and bath suites.
"When folks walk into a home, one of the first things they look at is the kitchen and bathrooms," said Ray Buschbacher, sales manager at Showcase Kitchens of Saratoga, a full-service kitchen and bathroom design, general construction and installation company, with a supply products showroom on Saratoga-Sunnyvale Road between Prospect and Cox.
"A home that has remodeled kitchen and bathrooms is more attractive to buyers. There's more of an incentive to buy homes that have been fixed up since the remodel becomes part of the finance package and alleviates the new homeowner from having to go through a remodeling process themselves," said Buschbacher.
When it comes to kitchen remodeling, there are many components to consider. The size of the initial kitchen and any attached rooms that cannot be changed will dictate the eventual layout and design. Cabinetry, countertops, flooring, appliance options, pantries and cooking islands all come into plan when designing a kitchen remodel. Whether you choose a subzero refrigerator or add a custom pantry, your selections will dictate the cost of the project, as well as its potential value.
Current trends in kitchens also impact remodeling decisions. Buschbacher sees a new trend toward the selection of natural products in kitchens. Stone counter tops such as granite or stone-looking porcelain tiles are now in style. Cabinets tend to be natural wood or wood finish instead of the all-white kitchen or European style cabinets of the '70s and '80s. There is also an emphasis on remodels that include adjacent rooms to make the kitchen area larger, expanding the kitchen into one contiguous room.
"Kitchens are no longer isolated the way they were designed in some of the older suburban ranch-style homes. People are taking out walls to open up the kitchen into the family room or other rooms to make the kitchen part of the living space so it becomes the focal point," Buschbacher said.
Finding out the latest trends is one step in preparing for a kitchen remodel, but planning is probably the most important step. The National Association of Remodeling Industry's website offers consumers a step-by-step process for planning a kitchen remodeling project. The site at www.nari.org provides information about the remodeling process that includes setting a budget, hiring a professional contractor, reviewing design tips and preparing a schedule.
The site also lists some of the pitfalls or common mistakes made in kitchen remodeling, as well as some of the items that should be reviewed during the planning process, such as efficiency, storage, safety, lighting, budget, timing, unexpected changes and preparation.
"There are many things a homeowner must consider before starting a remodeling project. Your Realtor can help in the beginning stages by weighing all the alternatives, including whether it would be more cost-effective to move or remodel if you want to upgrade," Carman said. "Most importantly, you want to ensure that remodeling will contribute to the value of your home."
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Los Gatos, California Since 1881
