According to the 2004 survey by Remodeling magazine that compares the
cost of construction to likely return on investment (ROI) at resale,
minor kitchen remodels rule, returning 92.9 percent of your
investment, followed closely by new siding at 92.8 percent.
Here's what's hot in remodels, room by room:
Kitchens typically suffer the most wear and tear. And because kitchens
tend to follow style and color trends, they often seem dated sooner
than other rooms in the home. The most popular minor improvements
include adding functionality with dual sinks and cooking stations, and
cosmetic improvements such as under-cabinet lighting, marble or
granite countertops and ceramic tile backsplashes. To add space,
consider a walk-in pantry or breakfast alcove.
"The younger buyers, especially the baby boomers, want a modern
kitchen with the cooktop stove and nice cabinets, not to mention wine
coolers and subzero refrigerators," says Mary Johnson, residential
specialist with Premier Properties of Naples, Fla. "I think it does
make a difference. Even if it's just a cooktop stove, they walk in and
say, 'Oh, it's a remodeled kitchen!'"
Bathrooms have changed the most during the past century. Your
grandparents may remember when they were outside. Your parents
probably made do with just one. Today, homes that have more than one
sell faster and fetch a higher price. A mid-range bath remodel (less
than $10,000) placed third in the 2004 survey with a ROI of 90.1
percent. Popular renovations include skylights, couples walk-in
showers, glass block windows and vaulted ceilings. Raised Jacuzzi
tubs, ceramic tile floors and ceiling fans have become standard
features in affordably priced new homes.
Bathroom additions ranked high in the survey as well. A midrange
addition (approximately $20,000) returned 86.4 percent; an upscale
addition ($40,000-plus) fetched an 80.1-percent return. But finding
space to add a bathroom can prove tricky; for best results, consider a
contractor.
"You can't lose by adding a bath," says Johnson. "If you're
remodeling, his and her dressing rooms, even his and her bathrooms,
are big. Then the husband can shave and the wife can fix her hair
without the shower steam. If money's tight, just replacing the water
fixtures helps."
Family rooms came into vogue after many American homes were built;
hence, you may face sacrificing other spaces (rooms, closets) to
create one. To enlarge the space, try lowering the floor, opening the
ceiling or expanding out with box-bay windows. According to the
survey, adding a family room can be a wise (80.6 percent ROI) but
costly ($50,000-plus) investment.
Bedrooms are always listed first in real estate descriptions for good
reason: We spend nearly half our lives there. If you can put one in
your attic, you're likely to recoup 82.7 percent of the estimated
$35,000 cost of installation. Consider stacking your bathrooms to cut
costs. Properly placed dormers and roof windows can help offset the
add-on appearance.
Master suites have become more the rule than the exception in most hot
real estate markets. If you are converting a bedroom into a master
suite, try to locate the closet as a buffer between bedroom and bath,
and enhance the suite effect with recessed lighting, sconces and
built-in adjustable reading lights. A mid-range master suite
($70,000-plus) will return 80.1 percent; an upscale master
($135,000-plus) a bit less, at 77.6 percent.
Decks expand your living space, and you rarely lose by making your
home larger, be it exterior or interior renovations. A $7,000 deck
addition placed fourth in ROI at 86.7 percent.
Unused/renewed spaces might not top the list of money-smart remodeling
projects, but a basement makeover ($47,000-plus) can still command a
76.1-percent return. A sunroom addition ($30,000-plus), which made the
survey for the first time, might fetch a 70.8-percent return.
Windows quickly and inexpensively add to a home's volume, and volume
is the buzzword in real estate these days. So it's no surprise that
your return on new glass is excellent, whether you're contemplating a
mid-range window replacement (less than $10,000) at 84.5 percent or an
upscale replacement ($15,000-plus) at 83.7 percent.
data from:
http://www.remodeling.hw.net/industry-news.asp?articleID=79166§ionID=173 |
