Adding Value to Your House
Posted by: Hanh Brown in Remodel, Rehab on May 27, 2008
There are two main ways that home owners can add value to their homes: remodeling or adding on. Remodeling or adding an addition to a house will also help to get a home ready for sale. However, it is important to understand which of these approaches is the right choice in a particular situation so the owners should always consider how the changes will help and who will be most impressed by the changes.
Generally speaking, men pay less attention to the special, fancier features of a home like Jacuzzi tubs or well-lit bathrooms. They often prefer brown or grey decor, with a large work area and loads of privacy. It is also a common belief that men prefer "fixer-uppers," but they actually like low maintenance houses so they aren't constantly being asked to repair things. If left to their own devices, men would often prefer faucets, toilets, sinks, baths, floors, mirrors, cabinetry, appliances and furnishings based on their industrial strength qualities as opposed to their beauty.
While men are more influenced by a large garage/workshop and a secluded, it is the women who are responsible for 80% of all home buying decisions, so they are the ones to keep in mind most when considering these projects. The areas that generally influence the decisions are the kitchens and the bathrooms, so these areas should be highlighted in the improvement projects. If remodeling both isn't an option in order to get a property ready for sale, the owner should then look at which area needs the remodel more, while at the same time considering the costs of both options. Since men spend less time feathering the nest, we see that, contrary to popular belief, men really tend to follow the lead of the women.
Although these general observations will certainly not apply all the time, remaining mindful of these gender-preferences will help in the decision making process. By bearing these preferences in mind, owners find it wise to focus their remodeling towards the lighter, prettier options. Since the women are making most of the purchasing decisions, remodeling should focus on their interests.
Looking first at the kitchen, the owner needs to decide what can be done. One option may be painting or refinishing the cabinetry and changing the knobs and handles to get the new look. Other possibilities include a new Formica laminate over the old counter tops with a matching backsplash or a white ceramic sink with a new faucet. Each of these choices may achieve the desired affect, but it is quite possible starting from scratch will be the best option. If that is the case, the walls and the flooring will become important, but adding some minor electrical and lighting upgrades will help definitely help the overall finished product.
Once the basics are complete, looking at the cabinetry and the room's space is a strong next step. Custom cabinets are often very attractive in price and quality. For this, it is important to find local craftsmen with low overhead who works on one job at a time. They will work with the homeowner and often cut good deals or do extra work. In terms of the room's space, eliminating unnecessary walls will allow for more light and the people in the kitchen will be able to talk with and see the people in the adjoining room, creating the effect of a more spacious kitchen.
The bottom line is that a well-lit, light, bright and spacious kitchen, well equipped with modern appliances, plenty of storage space and decorative tiles, paint and window treatments, will add value and appeal to any home's remodeling plan, particularly when keeping the female buyer in mind.
When moving to the bathroom, again, it is important to consider the feminine side as the women usually spend more time here than the men. It is a good idea to save the tub if possible because tubs are expensive, but if the tub is beyond saving, a new fiberglass one always improves the room. In fact, adding a jet tub is a great upgrade possibility since they have become popular and don't cost much more than traditional tubs. Of course, this is another decision to make with the female buyer in mind.
When moving from the tub to the rest of the room, the paint should be the next decision to make. Choosing a semi-gloss paint creates an excellent moisture barrier for the walls, but a tile or laminate half-wall wainscoting adds a nice touch too. Furthermore, while the old toilet and base cabinet are being replaced, it is also the perfect time to rip up the old vinyl and put down ceramic floor tile before the new fixtures are installed. Other than the tub, everything else can be replaced rather easily and for relatively less money than owners often assume.
Once the major aspects of a bathroom are complete, smaller things like new lighting, mirrored vanity cabinets, G.F.I. electrical outlets, wallpaper borders, towel rings and bars are usually the finishing touches. Even a man can appreciate coming home to a spacious, aesthetically pleasing kitchen and bath. Finally, it is important to remember to caulk everything at the end of the project. This protects the new investment from rotting from the inside out because dampness and wood eating insects are a home's worst enemies.
Once the kitchen and bath are complete, it is a good idea to decide if other areas within the home are within the budget. Since most people spend many hours a day in the bedroom, this is a good area to consider next. Once again, keeping female buyers in mind is important and they are often influenced by closet space, so enlivening them with bright white paint, new lighting and a new organizing system helps to maximize the available space. An often overlooked upgrade is the inclusion of a shoe rack: men forget these, but the female buyers are often impressed.
Once the closet is done, patching and painting the rest of the room becomes the next project. It is important to choose the paint color wisely as this is a major decision. The painting of the bedroom should always include the ceiling because people spend so much time laying on the bed and looking at it. After the walls and ceiling are done, a ceiling fan with light kit and dimmer switch makes a nice addition. When preparing the baseboards for installation it is a good idea to paint them a shade darker than the walls and tack them to the wall about one-half inch above the floor before putting the new carpet down.
In order to really bring the room together, it is important to bring a paint swatch or chip to the carpet dealer in order to choose the carpet color that really sets off the walls and base board trim. Afterwards, when installing the carpet, one should always use a dense quality pad beneath it. As for final touches, those include mini blinds, a curtain, and decorative switch plates and receptacle covers. Finally, a solid core door represents today's modern standards with a keyed lock set for security, so those should be included as well. All that's left to add are the candles.
As for the rest of the house, choosing one paint color and using it throughout all the remaining areas that are to be lightened and brightened is essential. Earth tone, eggshell or tan sand colors are a neutral favorite of many, so unless a floor is going to clash with it, these are a safe bet. Many individuals will always prefer bright, multicolored rooms, but it is impossible to prepare for every choice, so keeping it simple is always important. Speaking of floors, appraisal rules suggest that wood is better than carpet (except in bedrooms), and tile is better than vinyl. With that in mind, using nice tile and Pergo flooring everywhere else always increases the interest levels. Once the tile and wood are installed, maintenance is a simple and the longevity is undeniable. Furthermore, appraisers also look upon wood and tile as upgrades, so at the earliest opportunity, they are getting incorporated in the plans.
Here we have a general, Joe Homeowner remodel job, but there are often additions to keep in mind. However, moving towards an addition is another big job and will necessitate a new remodeling plan.
Adding Square Footage
Before deciding whether or not to add an addition to a house, a few things need to be considered. Basically, the main concern is always whether or not it can actually be accomplished. An awareness of the legal, physical, and financial issues is paramount. Initially, one needs to ensure that the permits and zoning regulations are in order. Next, the current floor plan needs to be evaluated to ensure the planned changes will work and that they will make sense in terms of the living space within the house. Finally, the cost of the project needs to remain with the budget; additions can often outgrow the projected costs. Once the cost is considered, the one needs to determine if the additional value will be supported by the other homes in the neighborhood. If not, the changes might not be a good financial investment.
Once these basic issues are sorted out, secondary issues must be dealt with. The length of time one plans to stay in the home after the addition is important as is the projected appreciation over that time period. The owner needs to be sure that the additions will help him or herself in the near future and also down the line when he or she plans to sell. Furthermore, the owner needs to be sure he or she is ready to deal with draftsmen, contractors, and building officials. Along with the organizational headaches, the owner also needs to be aware of the inconvenience of living in a construction site for about six months. Not only will the owner need to be aware of these inconveniences, but the other people in the home will have to deal with them as well so they should be consulted and agree on the changes before any plans are finalized.
After all of these concerns have been considered, it is important to think about the economic principle progression. This principle deals with the estimated return on an investment and how the property is expected to relate to the surrounding properties once the additions have been made. For instance, a 2-bedroom house with 1 ½ bathrooms in a neighbor hood full of 3-bedroom houses with 2 full bathrooms will certainly increase in value when a third bedroom is added and the ½ bath becomes a full bathroom. In this case, the house will be brought up to the neighborhood standard and will often be worth even more since the extra square footage is new. However, the opposite is also true. This is called the principle of regression.
This principle suggests that if someone over-improves on a house beyond the value of the homes that are surrounding it, then those lower value homes will tend to keep the value in the lower price ranges. This means that when an owner is planning an addition, he or she needs to ensure that point of Diminishing Returns is never passed. In essence, one can only improve so much before the additions reach a point where, for every dollar spent, less of that same dollar is returned when the property is sold. As long as the addition is projecting a return of about double the investment, things will be going well, but at some point, the "break-even" point will begin to be approached. At this time it is the owner should consider maintaining what is already there rather than spending more money on additions that won't add to the value.
Along with the principle of Progression and the Point of Diminishing Returns is the concept of super-adequacy. This concept deals with what could be considered "over-kill:" upgrading beyond the property's overall value. For instance, putting gold faucets in a mobile home would be too much for the location and the type of property it is.
While the benefits of an addition can be great, the overwhelming complications often lead people to remodel instead. They often see is as quicker and feel the value will increase faster as well.
Closing Thoughts about the Process
Painting everything inside and out is the greatest value producing improvement that owners can make on a dollar for dollar return basis. With this in mind, it is important to use the best paint available, as it is true that the expense of painting lays in the application of the paint not the paint itself. Appling two coats because of an inferior watered down paint doubles the time and the added paint needed to get the job done. It is important to remember that not all paints are the same, so shopping around and asking the right questions at the paint stores will save time and money in the long run.
Another thing that will often improve the home substantially is landscaping. If done right, this can add up to 30% to the value of your home. Shrubbery and low maintenance hardy plants and trees are always a safe bet. Once the bigger plants are done, it's always a good idea to add a few flowers for color. When thinking of landscaping over the long term, perennials and small flowering bushes are useful because they don't require more time every year.
With all of these changes in mind, it has also been proven that people can save about 30% simply by doing their own contracting. Books like How to Be Your Own Contractor explain the process. It is always within the realm of the owner to tackle the over site and scheduling that would normally be paid to a general contractor. When owners take this responsibility upon themselves, they always end up with a new addition at a significantly lower price.










