Best Remodel Projects for a Slow Market
Kitchen Remodel
Even though the
2007 Cost versus Value Report reflected some declines in home prices, it still showed an 83% return on investment for a minor kitchen remodel, making this one of the most recouped home improvement investments. Major and upscale kitchen remodels came in at 76% and 74%, respectively
Tip: Before remodeling, do some research to learn what design trends are gaining popularity.
Trends:
- Shiny surface materials are giving way to a more natural, less shiny look.
- Large tiles are preferable over smaller tiles, especially for floors.
- Color tones are rich and earth-based, the color of grass, wood, the sea and sky.
Tip: For higher end remodels, consider adding a second sink and dishwasher.
Adding Functional Space
Do you have an extra room that could be finished off, or converted to a specialty area? Consider remodel projects that boost the tangible value of your home by increasing the usable square footage, or the number of rooms that show on a listing if your home is for sale.
Examples include:
- Finishing off a basement to create a family room or media room.
- Converting a carport into a garage.
- Converting a half bath into a three-quarter or full bath. (This is especially valuable in a home with one and a half baths, since even just adding a shower effectively doubles the functionality.)
Tip: Home offices, media rooms and mud rooms are becoming increasingly popular.
Bathroom Remodel
These days the trend is the bathroom as mini-spa, a luxurious retreat from the world. Future buyers are likely to expect bathrooms to be remodeled, or else will plan to do it themselves, so choosing the right upgrades now can boost your home's resale value.
Trends:
Tip: For higher end remodels, consider tile wainscoting.
Upgraded Doors, Paint, Trim and Molding
Simply adding or upgrading baseboard molding can dramatically boost the effect your home has on visitors. Newer doors, trim and paint also make it much more appealing to potential buyers.
Trends:
- The two-panel door is gaining in popularity compared to the six-panel door.
- Baseboard moldings are taller and less ornate than they were a few years ago.
- Bright white is less desirable than soft white or ivory for trim, and warm, earth-toned paint colors are popular for walls.
Window Replacement
Energy efficiency and the move to go green are trends in themselves (and ones that are likely to become even more prevalent.) Not surprisingly, the
Cost versus Value Report shows that a window replacement project recouped a healthy 79% to 81% of its cost.
Tip: Choose windows that are rated as Energy Star certified, and that have a transferable warranty.
The bottom line?
It may seem counterintuitive that we talk about a remodel project that recoups less than 100% of its cost as one that pays off. However, the return on investment numbers don't reflect factors such as how much faster a home sold, or how many other competing homes it beat out because of its improvements.
Choose smart remodel projects such as the ones above and you'll have a good chance of seeing them truly pay off over time.
With home equity lines less available than they were a few years ago, more homeowners are thinking twice about going ahead with remodel plans. However, when it comes to resale value not all upgrades are created equal.
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