FIX'IN TO SELL

6 Home Improvements that Recoup their Value

The old saying “Don’t judge a book by its cover.” may apply to some things, but certainly not home improvements. If you want to test this theory, just ask three of your closest friends to come in and tell you the top 3 things you could do to improve your home. Chances are you’ll hear things like: 1) get rid of “stuff”, 2)put on a fresh coat of paint, and 3) update your kitchen and bathrooms- all visual things that homeowners look for when purchasing a new home. You won’t hear things like “change out your electrical panel” or “install a solar panel system”. While both of these projects are certainly worthwhile, they don’t appeal to the emotions of selling your home. Just like finding a mate, buying a home is an emotional experience, calling for emotional home improvements.

What is an emotional home improvement? Put simply, its any improvement that creates a mood in your home, and allows potential buyers to better visualize how they will use the space. Regardless of how much or how little you spend on your home, you must appeal to the emotions of your potential buyers. Sometimes simply clearing away the clutter and re-arranging your furniture will do- known as “staging”. However, if you’re in a market where you are competing with a lot of newer homes for sale, staging is often not enough. Kitchen mini makeovers one of the most popular projects among sellers getting ready for market.

Considering the emotional aspects of selling a home, it comes as no surprise that kitchens and bath improvements are at the top of list published by Remodeling Magazine. According to their 2007 Cost Vs. Value Study for the Pacific Region, here are the top 6 improvements, their average costs, and the return you can expect.

1. Deck Addition –Wood
   Average Cost: $12,812, Recoup 108% or $13,836. Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install pressure-treated deck boards in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using pressure-treated wood posts, railings, and balusters.

2. Minor Kitchen Remodel
   Average Cost: $22,698, Recoup 103.5% or $23,494. In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

3. Replace Windows - Vinyl
   Average Cost: $12,164, Recoup 102.9% or $11,978. Replace 10 existing 3-by-5-foot double-hung windows with insulated vinyl replacement windows. Wrap existing exterior trim as required to match. Do not disturb existing interior trim.

4. Replace Windows - Wood
   Average Cost: $13,120, Recoup 98.5% or $13,497. Replace 10 existing 3-by-5-foot double-hung windows with insulated wood replacement windows, exterior clad in vinyl or aluminum. Wrap existing exterior trim as required to match. Do not disturb existing interior trim.

5. Bathroom Remodel
   Average Cost: $18,112, Recoup 96.6% or $17.500. Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4x4-inch ceramic tile surround; new single-lever temperature and pressure-balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper.

6. Major Kitchen Remodel
   Average Cost: $61,122, Recoup 96.6% or $59,056. Update an outmoded 200-square-foot kitchen with a functional layout of 30 linear feet of semi-custom wood cabinets, including a 3-by-5-foot island; laminate countertops; and standard double-tub stainless-steel sink with standard single-lever faucet. Include energy-efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

   If you’re of the mind that “Bigger is Better”, The 2007 Cost Vs. Value Study shows otherwise. The projects to avoid if you’re selling are 1) installing a back up power generator, 2) a sunroom addition, and 3) a home office remodel. In general, any type of addition will not give you the greatest return on your investment if you are planning to sell your home in less than 5 years.

   Kathe Russell, CKBR is a Certified Kitchen and Bath Remodeler by the National Association of the Remodeling Industry and principle designer of DreamBuilders Kitchen and Bath, Inc. Her design center is located in the The Village Center in El Dorado Hills. She can be reached at 916.933.7371 or visit www.ourdreambuilder.com.