Landscapes - Summer 2006 Issue |
| Thinking About Remodeling? Get the Most Value For Your Investment |
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Updating your home can make it more livable and spacious, while also adding to the home’s value. For many rural families whose homes are located on their farm or ranch property, selling the home to move to a newer or larger one simply is not an option. Instead, remodeling can be the way to gain attractive, usable space that adds long-term value. Real estate experts caution, however, that not all remodeling projects recoup their cost when it comes time to sell. The National Association of Realtors’ annual “Cost Versus Value Report” tracks the average costs of remodeling projects and their average rate of return. According to the Realtors’ association, the following are some of the most cost-effective home improvement projects. • Replacing Siding When you replace old siding with new energy-efficient fiber cement siding, you not only improve the insulation of your home, but you also can dramatically change the home’s exterior appearance. Replacing siding has an average payback of 103.6 percent of the project’s cost, according to the study. • Remodeling Bathrooms Be prepared to spend about $10,000 for a mid-level bathroom remodel, and as much as $26,000 or more for an upscale renovation, according to Remodeling magazine. However, even a mid-level bathroom update will add more value than the investment required. Real estate experts recommend focusing on low maintenance, high comfort and energy efficiency. Adding new fixtures and large double-sink vanities, updating paint and wallpaper, and replacing flooring can be good investments, which on average will return about 102.2 percent of their cost. Keep the color palette neutral, and bring in as much light as possible through skylights, glass brick or etched windows, solar tubes, and energy-efficient lighting. Popular upscale renovations include adding an oversized jetted tub, frameless shower with multiple showerheads, new faucets and heated towel racks. Cabinets that mimic freestanding furniture are also popular additions. • Remodeling the Kitchen Kitchen remodeling can be the most expensive renovation project but also can have one of the biggest payoffs. According to Remodeling magazine, a minor kitchen-remodeling project averages just under $15,000, but you’ll recoup nearly 95 percent of those costs when you sell the home. The larger and more elaborate the kitchen remodeling project, however, the less it will return when you sell. Popular updates include stainless steel appliances, gourmet gas cook tops, warming and convection ovens, and deep farmhouse-style sinks. For an updated look, Realtors suggest maple and hickory cabinets in darker finishes, sleek lines, commercial-looking appliances, and plenty of workspace and in-kitchen seating. Deep drawers for dishes and cookware are replacing the traditional cabinet. Center work islands that look like freestanding furniture are among other current trends. • Converting the Attic Converting unused attic space into an extra bedroom with shower can be costly — in the range of $39,000 — but may be a wise option for families who’ve outgrown their space. Because of the cost, real estate experts say you should consider an attic conversion only if you plan to remain in the home for many years. Attic space is also a great option for an office or game room. Converting unused space into a home office averages $13,143, according to the magazine’s most recent survey, and you can expect to recoup about three-fourths of your costs when you sell. When converting the attic into an office, or adding more footage for an office, don’t scrimp on electrical power. Plan for multiple phone lines, cable, wireless Internet access, and multiple computers and office machines. Also consider mixing light sources using overhead, natural and desktop task lighting. OF COURSE, ANY REMODELING or renovations that maintain a home are beneficial. “In other words,” notes Farm Credit Bank of Texas Chief Appraiser Robby Vann, “keeping the home in good repair and modern design will help maintain value. This applies to the landscaping as well.” Vann agrees that not all improvements will, however, add the same value as they cost. For example, building a new fence is sometimes a “must,” but it will not necessarily increase the value of the property by the amount that it costs. “The market generally expects the properties being purchased to have adequate fencing,” he says.
Increasingly, homeowners look to their own yards as places to entertain and relax. The National Gardening Association says 75 percent of homeowners enjoy some type of lawn or gardening activity. And, properties that are well manicured to produce a “park-like” appearance seem to have higher sale prices, Vann says. Popular additions are outdoor living areas that extend the home’s useful space, where homeowners can cook, entertain and relax in the serenity of a beautiful natural setting. Real estate experts say the best outdoor additions for the money are covered porches and patios, decks, and outdoor kitchens complete with grills, sinks and refrigerators. Other popular outdoor-living additions include pergolas, fire pits or built-in fireplaces, screened porches, and waterfalls and fountains. “However, one improvement that seems to never contribute what it costs, at least in the rural areas around central Texas, is a swimming pool,” says Garrett Cox, appraiser with Capital Farm Credit in Temple, Texas. “This may be due in part to the time and expense required to maintain a swimming pool.” Garages Aren’t Just for Cars Homeowners also are looking to the garage as more than just a place to park the car. A survey this year by Closets magazine found that homeowners spend an average of $4,413 on garage remodeling projects. The primary focus is to create storage space, with wiring, trim and finish-out that turns the garage into an extension of the home. Many farm and ranch homes have been in the family for generations and have historic significance. Real estate experts caution that renovating a home to maintain historical accuracy can be much more expensive than simply remodeling to upgrade old with new. Restoring an older home to match the original construction may require custom molds or special tools, which can add time and expense to the project. If the home has a historic designation, any restoration likely will require approval by a historic landmark commission, so be sure to factor in additional time for the project. Article by Sue Durio |
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