 |
|
|
|
Let the numbers do the talking!
If you feel like you are outgrowing your home, or that your
spatial needs are different today than when you purchased
your house, it may be time for a change. Remodeling can give
you the added or different space you need now, but you
should also carefully consider the resale value of any
project you undertake. Some remodels allow for a bigger
payoff than your original investment, while others might be
needed just to keep the resale price on par with the
neighborhood.
This month's Item of Value contains information that will
help you evaluate the potential payoff of your remodeling
project, as well as shows you how to budget for it. You'll
find a guide for how much the top remodels can return in
resale value, with style trends and suggestions for what to
tackle in the most popular projects. The backside of this
month's Item of Value provides a concise guide for budgeting
your remodel project. A checklist covers the budgeting
process as well as tasks to do before you start the budget.
There is also a worksheet to help you itemize estimated
costs by category, and keep your overall budget on track.
Before you decide, why not call me. I'd be glad to prepare
an up-to-date competitive market analysis for your property,
or I can provide lists of qualified contractors to help in
your project should you decide to go forward and remodel.
Whatever remodeling project you take on, may it have a happy
and high-value ending.
Oh, by the way...if you know of someone who is thinking
of buying or selling a home, and would appreciate the level
of service I provide, please call me with their name and
contact information, and I will be happy to follow-up and
take great care of them.
Sincerely,
 Sherry
Rich, REALTOR(r)
Sales Agent, RE/MAX Hall of Fame
Accredited Buyer Representative, Certified Relocation
Professional, Certified Residential Specialist, Graduate
REALTORS Institute |
|
|
|
| |
|
| |
|
REMODELING
YOUR HOME BY THE NUMBERS |
Maybe you've been feeling the need for more space, less
space, or just different space. You've been wondering--which
solution will give me what I want with the least financial
hit? Here's one gauge to use: Expect moving to cost about 10
percent of your home's current value. If your remodel
project can be done for less than that, stay and do it. But
plan it with an eye on the potential resale value. Read on
for ideas and tips that will help you take the lead in
plotting your home remodel.
WHAT TO REMODEL
When you're ready to nail down your plans (so to speak),
here are suggestions from industry experts:
Kitchen
Add usability with dual sinks and cooking stations. Add
aesthetics with commercial-quality, stainless steel
appliances, stone or stainless steel countertops and ceramic
tile back splashes. Add space with breakfast nook or walk-in
pantry. Add livability with computer desk, mudroom, or hobby
area.
Bathroom
Add light with skylights and glass blocks without losing
privacy. Add space with walk-in dual shower, vaulted
ceiling, recessed medicine cabinet, or a curved shower
curtain rod. Add functionality with twin sinks or vanities.
Add aesthetics with ceramic tile or stone flooding, stone
countertops, heated towel bars and floors.
Siding
Remodeling the exterior is as much about maintenance as it
is about curb appeal. Vinyl siding looks fresh and tidy year
after year with minimal upkeep. With stucco siding, a new
polymer covering can be sprayed or troweled onto a
fiberglass mesh base.
Windows
New windows will help you realize additional savings in
monthly utility bills. Prospective buyers view windows as
they do other structural items, so failing to update old
ones may affect potential offers. Newer styles include
seamless bent-glass corner windows, curved glass, and
casements with no center stile.
According to Realtor Magazine Online, since 2002 four
remodeling projects--kitchen, bathroom, siding and
windows--have had the biggest return on investment at resale
nationally. Here are the 2005 national average cost and
resale figures.
|
Remodel Project |
Job Cost |
Resale Value
(within one year of remodel) |
Average Cost Recovered |
|
Minor Kitchen Remodel |
$14,913 |
$14,691 |
98.5% |
|
Major Kitchen Remodel: Midrange |
$43,862 |
$39,920 |
91.0% |
|
Major Kitchen Remodel: Upscale |
$81,552 |
$69,194 |
84.8% |
|
Bathroom Remodel: Midrange |
$10,499 |
$10,727 |
102.2% |
|
Bathroom Remodel: Upscale |
$6,052 |
$24,286 |
93.2% |
|
Siding Replacement: Midrange |
$7,239 |
$6,914 |
95.5% |
|
Siding Replacement: Upscale |
$10,393 |
$10,771 |
103.6% |
|
Window Replacement |
$9,684 |
$8,681 |
89.6% |
|
| |
CALCULATING YOUR
REMODEL BUDGET
(click
here for a printable version of this table)
Construction
Labor
Including subcontractors. Multiply wages by
estimated hours for each work. Remember payroll
taxes and workers' compensation insurance if you do
the hiring. |
$ |
Contractor Fees
Fees charged by contractors and subcontractors, such
as electricians. |
$ |
Construction
Materials
Lumber, nails, paint, wallpaper, insulation,
flooring, tiles, plumbing fixtures, cabinets,
countertops, heating & ventilation. |
$ |
Tools &
Equipment
All tools purchased and rented for the project, from
hammers to post-hole diggers. Also includes safety
equipment such as goggles, hard hats, ear mufflers,
etc. |
$ |
Permit Fees
Contact the city planning department. Contractors
may handle this for you. |
$ |
Decorative
Add-ons
Window treatments, light fixtures, cabinet hardware,
etc. |
$ |
Repairs Due to
Remodeling
Repairs needed resulting from the remodeling, such
as patching the wall after plumbing vents are moved
or replanting lawn there the equipment had been
kept. |
$ |
Cleanup
Trash bin rental, hauling fees, dumping fees,
removal service. |
$ |
| SUBTOTAL |
$ |
Contingencies
Includes cost overruns as well as upgrades, changes,
supply shortages, weather delays, miscommunication,
etc. Budget up to 30% of subtotal. |
$ |
| Add Contingencies
to Subtotal for TOTAL |
$ |
|
BEFORE YOU
BUDGET
Imagine the new space and make sketches. It's easier to plan
something you can see.
Explore. Talk to people who have done a similar renovation.
Read books, magazines and Web sites, get onto renovation
listservs, watch instructional videos. Take notes!
Think ahead. Is the renovation intended to add value when
you sell next year? Then pay special attention to assessing
the value of the house and neighborhood. Add comfort or
pleasure? Accommodate a growing or shrinking household? If
you plan to stay for at least 10 years, almost any
renovation will be worth its cost.
THE BUDGET PROCESS
Figure out how much money you have to spend on a remodel
without straining other budgets.
Figure your debt-to-income ratio. If you're planning to
borrow, you need to know whether you can handle the extra
debt.
Of you're working with an architect, designer or contractor:
Bring your drawings, budget and other figures to them for
help with cost breakdowns.
If you're going at it alone, the following will be your
responsibility:
Estimate project costs for materials, labor, permit fees,
and so on.
Create a timeline to help contractors plan the prokect and
help you budget efficiently.
|
|
| |
|
| |
|
| |
|
| |
E-mail:
sherryrich@wesellmore.com Direct:
(443) 535-0996 Cell: (410) 978-9532
Office: (410) 730-6100 or (800) 899-7629 Fax (410)
740-8258
|
|
