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Smart Remodel Projects for 2010 by Kara G. Morrison
- Jan. 22, 2010 01:22 PM
In its latest annual cost vs. value report, Remodeling magazine calculated that the average cost recouped (the value retained at resale) for a remodeling project is about 63.8 percent. That percentage is the lowest in the magazine's seven years of calculations.
The Remodeling survey also found affordable curb-appeal projects and renovations that make better use of existing space provide some of the best values. Here are five remodeling projects we think should still garner decent bang for the buck in the Valley.
The age of sprawling McMansions for all has ended. Today, homeowners factor energy costs into their remodeling plans, and rather than adding lots of square footage, many are opting to reconfigure their floor plans to make them more efficient. Steve Shinn, owner of Homework Remodels in Phoenix, said more homeowners are taking down walls and repurposing wasted space. He recently turned Michael Edelstein and Jessica Webb-Edelstein's two-bedroom Willo Historic District home into a three-bedroom by doing just that. Webb-Edelstein said the couple considered all of their options before deciding to remodel. While the project was an investment, they added only 100 square feet to their now 1,800 square-foot house. "We couldn't find anything we loved as much as our current home, and we didn't want a massive mortgage as well," Webb-Edelstein said. "We wanted to take a more economical approach." The remodel accomplished everything the couple had hoped for and more for the family of four, including their new son, Oliver, and 3-year-old daughter, Luci. "It just flows really nicely," Webb-Edelstein said. "I wish we would have done it a long time ago." Shinn, whom Webb-Edelstein credits for the creative floor-plan work, was also pleased. "It was a good savings to them, and it was a good answer, because you don't always have the space to do an addition," he said. Tanner Luster, owner of Luster Construction in Scottsdale, agreed that more projects involve tearing out walls and creating more convenient spaces. "People are seeing bigger isn't always better," he said.
Kitchens and bathrooms (especially master bathrooms) help sell houses. They are still a major part of Shinn's business, although he notes that clients are carefully budgeting and choosing their materials. Some homeowners are opting to reface rather than replace kitchen cabinets. Others are choosing standard upgrades rather than more expensive or top-of-the-line materials. Remodeling puts the average recouped cost of a midrange kitchen remodel in Phoenix at 71.8 to 73.4 percent; a midrange bathroom remodel recoups about 67.8 percent of the cost. Still, Luster thinks the long-term value is higher. "I see a lot of value to clients that are upgrading something that hasn't been upgraded in 15 years," he said. Luster recently gutted and enlarged Joy and Ben Pickett's Ahwatukee home, giving the young couple and their three kids their dream house, complete with custom bathrooms and an impeccable kitchen with high-end appliances. The kitchen, with Old World-style cabinets and granite countertops, is now more open to the rest of the home, and the Picketts couldn't be happier. "With the downturn, we had lots of bids come back cheaper," said Ben Pickett, adding that he and his wife wanted to customize a home in a neighborhood they loved rather than building from scratch in the far suburbs. They also look at the home as a long-term investment and plan to stay for decades. "We're thrilled with it," he said. "I didn't realize how much we would actually enjoy it. . . . If we had built this home, it would have been an astronomical amount of money."
Anything that makes a home more energy-efficient is potentially a good project. Installing high-efficiency windows and doors, replacing an inefficient, worn roof, increasing insulation and sealing air leaks are all projects that make property more desirable while also lowering energy costs. These projects may not be sexy, but they're often important to buyers, and some come with the carrot of a tax credit. Taxpayers can get up to $1,500 for projects that make a home's "envelope" - its walls, windows and roof - more efficient. Projects such as new heating and cooling units, solar water heaters and solar-panel systems also come with incentives or tax credits that can offset a large chunk of the overall cost. "My prospective clients are very in tune to their costs of running their home," Shinn said. "Anything that could save you 30 percent on your utilities is a great value." Remodeling estimates midrange window replacements in Phoenix recoup 65.8 percent to 72.9 percent of the cost, depending on the window type. Water-saving fixtures are another popular home improvement. Low-flow showerheads and toilets that use less water are affordable upgrades that also save on water bills. "A lot more people are asking about dual-flush toilets," Shinn noted.
Covered patios, outdoor kitchens and comfortable outdoor living areas are still popular additions in the Valley. Installing awnings or shade sails or extending a roof over a patio not only makes outdoor spaces more livable in summer months, but also can lower energy costs by protecting doors and windows from direct sun. During the remodel, the Pickets added a large concrete-and-travertine patio and a larger outdoor kitchen. The Edelsteins also added a large outdoor ramada, featuring a fireplace, outdoor television and dining patio to their home, before their recent interior remodel. Webb-Edelstein said the outdoor living area continues to make their compact home feel more spacious. "We're out there every night in the winter and summer," she said.
A front-door facelift can add a lot of value for the price. Steel entry-door replacements earned Remodeling magazine's highest "cost recouped" percentage in the Phoenix area: 108.7 percent. Well-made doors also increase safety and can help lower energy costs. "Certainly, you get a better insulating package with a new door," said Greg Meidema, a Tucson remodeler and chairman of the National Association of Homebuilders Remodelers. Other curb-appeal projects, including siding, did well in Remodeling's survey. Meidema told of remodeling a masonry home in which he added energy-efficient foam stucco - a layer of foam covered with stucco finish - that increased both curb appeal and energy efficiency.
Kitchen Remodeling is just one of the remodeling specialties we offer to our clients in Phoenix and the surrounding citys of Scottsdale, Tempe, Chandler, Gilbert, Glendale and Mesa.
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