While caulking, scraping, priming and painting can greatly improve a home’s appearance, homeowners can expect to recoup a large percentage of the costs associated with more extensive remodeling projects that can add significantly to a home’s value.
Following are some of the most popular remodeling projects, their average cost, resale value and cost recouped, based on the Remodeling 2007 Cost vs. Value Report data for the Detroit area:
• Basement remodel, including an entertainment area with wet bar; a bathroom; insulated, finished and painted walls and trim; lighting and electrical, etc.: Based on an average cost of $70,219 and resale value of $37,109, homeowners can expect to recoup 52.8 percent of the cost.
• Bathroom remodel: Cost is $18,209 and resale value $10,425, making for 57.3 percent of the cost recouped.
• Minor kitchen remodel, including replacing cabinet doors and drawers; new hardware, laminate countertop, resilient flooring, energy-efficient wall oven and cooktop, and mid-priced sink and faucet, etc.: Cost is $22,747, resale value $11,900. 52.3 percent of cost is recouped.
• Roofing replacement: A $21,404 cost garners $9,785 in resale value for 45.7 percent of cost recouped.
• Siding replacement, based on 1,250 square feet of siding with trim: A cost of $11,323 generates a resale value of $7,355, with 65 percent of cost recouped.
• Window replacement, vinyl and wood, respectively, as based on 10 3-by-5-foot double hung, low E windows: Cost is $12,197 or $13,150 and replacement value is $7,348 or $7, 681, leaving 59.8 percent or 58.4 percent of the cost recouped for vinyl and wood, respectively.
“© 2007 Hanley Wood, LLC. Reproduced by permission. Complete city data from the Remodeling 2007 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.” |
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Simple home improvements now can pay off later
Experts offer advice on
what to update
By Christa Buchanan
C & G Staff Writer
It’s no question that, with the poor state of Michigan’s economy and the glut of homes on the market, it’s taking longer for even the nicest of homes to sell.
“A few years ago, I sold six to eight homes a month, but now it’s only one or two,” said Mark Foster, broker-owner of Foster & Foster Realty.
This, along with declining housing values, said Foster, has left some homeowners contemplating home improvement projects rather than moving, while those who need to sell are finding that their homes must be move-in ready to compete in a slow market.
“Unfortunately, people who want to sell have to have everything in top shape — a new roof, glass block windows, updated landscaping and fresh exterior paint. … Right now, homes that are selling either need a ton of work or nothing,” said Eric Goosen of Real Estate One and Johnstone and Johnstone.
Whether you’re moving or staying in place, local experts agree, in this market, it’s best to stick with simple, affordable updates and renovations: Don’t undertake any major renovations, as it may not be a good investment.
“Some people spend too much (on renovations.) Don’t overspend, especially in this market: Granite countertops and stainless steel appliances are not necessary — they’re over-improvements,” said Goosen.
It’s all in the details
Paying attention to the details and making sure everything is neat and orderly can go a long way, said Lynn Baker, a Realtor with Hall and Hunter, noting that most people are looking for a “clean, uncluttered, well-maintained” home, rather than a “fashion statement.”
“Don’t go crazy. … Keep it simple and elegant — make a good face,” said Baker, who also suggested repairing such “red flags” as cracks in cement or black top and broken window seals, and cleaning oft-neglected areas, such as the garage, basement and closets, especially if they are small.
Simple cosmetic changes — updated landscaping, matching hardware and fixtures, and painting — can make a big difference in a home’s appearance.
“Cosmetic changes will get you the biggest buck for the least money. … Little things, like changing out light switches and covers (and) lighting fixtures greatly improve (a home’s) appearance,” said Blake Wasilkowski, owner of Finnski Construction, adding that fresh paint, if done well, can reap the biggest “dollar for dollar” return.
“Caulk, scrape, prime and paint,” advised Baker, adding that basements and garages shouldn’t be forgotten, colors should be neutral and wallpaper non-existent.
“A lot of things can be done with little expense — decluttering, making sure the house is extremely clean, the windows are washed, the leaves are raked, the gutters are neat and clean,” said Goosen, adding that paying attention to “small, inexpensive details, such as cleaning the furnace and hot water tank gives the appearance of being newer and well-maintained.”
The bigger picture
As for bigger remodeling projects, kitchens and baths remain high on the list; however, Wasilkowski said, he’s “finding that people are being more frugal with the current economy and doing more inexpensive, not cheap, functional improvements.”
Some affordable options, include painting, refinishing or re-facing cabinets rather than replacing them; replacing old sinks, faucets, cabinet hardware and hinges, making sure that all the metals match; and installing new energy-efficient appliances.
The current economy can actually benefit those looking to remodel, said Wasilkowski, especially if they are willing and capable of doing some work themselves.
“In this market, many builders are willing to only charge for labor. … You can save a lot of money by buying materials yourself,” said Wasilkowski, noting that some homeowners are doing the demo work and hiring a contractor for finish work and more difficult projects — something that was virtually unheard of when the market was booming.
Some of the most popular projects, said Wasilkowski, are opening up living spaces by removing dining room or stairwell walls, and finishing basements.
“A lot of people are adding a bath in the basement … a kids playroom or family room — nothing fancy, just paint and flooring,” said Wasilkowski.
Essentially, experts agree, proper maintenance is key to sustaining a home’s value: If it’s worn, replace it; and if it’s dirty, clean it. If it’s outdated, paint it; and if it’s broke, fix it.
Baker can be contacted at (248) 379-3000, Foster at (586) 805-6000, Goosen at (586) 771-1100 and Wasilkowski at (586) 792-5049.
You can reach Staff Writer Christa Buchanan at cbuchanan@candgnews.com or at (586) 498-1061. |