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• Remodeling Projects that Add Value
• Tips on Controlling Your Remodeling Budget
• Controlling Your Kitchen Remodeling Costs
• Advice on How to Save Money on Your Next Kitchen or Bath Remodel

Remodeling Projects that Add Value

Real Estate Advice: Home Remodeling Projects that add value to your home

Have you been wanting to add a room, turn a closet into a bathroom, revamp and modernize your kitchen, replace appliances, or retile the floor? Remodeling projects can really add to the usefulness and space of your home, but some will add more (and in some cases a lot more) value to your home. Here is what some of the best real estate experts are recommending:

1. Keep within the bounds of your neighborhood - a $50,000 home theatre is neat to have, but if you live in a $100K-$200K neighborhood this will not add much to your resale value or can make it very hard to sell for what you want. You would be out pacing and outpricing your neighborhood. If you are going to stay in your house for ever this is fine (you can do whatever you like then). Look at what your neighbors have or are doing and look at recent sales prices and trends for your neighborhood. A good, seasoned, local realtor can be a big help here. They know what adds value and will help sell for top dollar.
   
2. Kitchens and bathrooms are key! In every area of the country these remodeling projects are the best at recouping their cost and actually adding to the resale value of your house. Average return on investment 100 - 105%. Energy efficient appliances, stainless steel, new countertops, new sink, paint, flooring, crown molding will do wonders for the kitchen. Only go for granite if some of your neighboring houses have it, else you are again out pricing your house. New fixtures, tub, double instead of single sink, recessed lighting, flooring and paint for the bathroom will catch a buyers eye - less they will have to do to make it home. Tip - when painting go with neutral tones and, if possible, use a expert for tips on colors.
3. Decks, fences, bathroom addition (not remodel). Average return on investment 80 - 90%. These projects can be costly when comparing cost versus value, but recoup enough and add functionality so they are still good ideas. Be sure to use experts for any addition projects as you may have code issues and zoning requirements an expert is better able to meet.
4. Home office, screened porches, refurbished basement, attic bedroom, home office. These projects are a little lower on the average return on investment, 70 - 85%, but they should not be overlooked as they can make your house sell quicker. A screened porch is a must in some neighborhoods and many buyers have now come to desire or even require a home office as current trends show an increase in home offices and the self employed. Also, a home office may be partially tax deductible. Again, the rule is stick with tradition, look at your local furniture stores to see what people like their rooms to look like. Large furniture manufacturers spend millions to find what people want in home offices and such and place their furniture and room settings with this in mind. Don't go to modern or try something unique, tradition sells. The more unique you make your home the harder it will be to sell it.
5. Game rooms, saunas, pools, bars, upgraded windows, etc... These are projects that are good if you are planning on staying in the home for a long time and don't care too much about resale value. These projects generally have much lower resale values and will only result in a loss of money. Again, it is best to ask a local realtor what works and what does not.

There you have it--what what works and what does not. Keep in mind there are some communities where the norm can be different and it is always best to consult an expert for their opinion. Besides it is free to consult the best experts - real estate professionals.

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Tips on Controlling Your Remodeling Budget

The most important part of any remodeling project is making sure you don't go over your budget. Doing so can lead to settling for unexpected options, disagreements with contractors and worst case, an unfinished room!

This is why the National Kitchen & Bath Association (NKBA) is providing homeowners with a few simple guidelines to follow when remodeling, especially during National Kitchen & Bath Month this October. Follow the steps below from the NKBA to make sure your remodel is everything you expected, at a price you can live with!

• Differentiate between 'need' and 'want'. Research the costs of many different kinds of products and materials starting with the most expensive necessities down to the items you can do without. Major appliances should be at the top of your list since they will cost the most. Know the difference between needing something and just wanting it. Start your budget with things you need.
• Make a top 10 list. Look around your kitchen and/or bathroom and decide what needs to be replaced the most and what can be worked on down the road. Remember the needs of your family. If you have small children, safety should be taken into consideration when prioritizing or if a family member is handicapped or elderly, this should be budgeted into your costs and design as well.
• Resist temptation. Know exactly what you want before you search for it so you're not tempted to buy out of your range. Uncertainty may leave you vulnerable to purchasing unnecessary products and to choosing materials that go beyond your means. Know what features are most important to you and your family so it's easier to choose when the time comes. There's an abundance of different appliances that offer different features but most will get the job done, so if you're budget doesn't allow it, don't pick anything too fancy or high-tech.
• Get a quote. A designer and/or contractor should always visit your home before providing you with a quote for the design and installation. Don't accept a quote for your project until a full survey has been completed. Make sure the quote is thorough to avoid overspending down the road and any misunderstandings.
• Double-check. Make sure to visit a showroom to see the products and materials in person in order to determine the quality of what you're buying before you buy it. Magazine and Internet photos are not as reliable as they may seem and may be overpriced for what you're getting. Try to get referrals from people you trust. Don't be afraid to ask friends, neighbors and family members to see their kitchens and ask who they hired. This is a great way to envision the quality of the result of your kitchen if you decide to use the same designer and contractors.
• Keep track of your payments. Arrange a clearly defined payment schedule. Ask for several installments throughout the project. Never pay in full until you have received delivery of all your goods. Companies that ask for full payment ahead of delivery have your money - but you don't have your appliances or completed kitchen or bath.

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Controlling Your Kitchen Remodeling Costs

By AJ Fanter

Kitchen remodeling projects do more than improve your lifestyle. According to Remodeling Magazine's Cost to Value report kitchen remodeling projects can have as much as a 112% return on your investment. But, the secret to seeing a great return is keeping your kitchen remodeling budget under control.

Setting Your Kitchen Remodeling Budget
According to this year's Cost to Value report, kitchen remodeling prices range from $15,000 for an inexpensive kitchen remodeling project to $85,000 on the high end. And, while the average kitchen renovation budget comes in at $45,000, one rule of thumb is to set your kitchen renovation budget at 15% of the overall value of your home. For example, if your home's worth $250,000 your kitchen remodeling costs should be $37,500. Or, alternatively, plan to spend roughly $100 per linear square foot. In addition, it's a good idea to set aside a 10-20 percent cushion, in the event of unforeseen kitchen renovation cost overruns.

Understanding Kitchen Remodeling Costs
While kitchen remodeling prices vary based on kitchen design, the National Kitchen and Bath Association notes the biggest kitchen renovation costs are cabinets (36%), countertops (14%), and appliances (12%). The rest of your kitchen remodeling budget will be spent on flooring, hardware, lighting and fixtures (6% each). The rest goes to construction, permitting and design costs, which can vary from 25% to 50% based on the size and scope of your project.

Remodeling On a Budget
Remodeling on a budget means sticking to your budget! Don't overspend! One way to keep on budget is to decide prior to starting your kitchen remodeling project what your absolute necessities are. Then after you've identified the most important elements, you can add in the other options as your kitchen remodeling budget allows.

Kitchen Remodeling Planning
One of the best ways to keep your kitchen remodeling project on a budget is by getting qualified kitchen remodeling planning assistance. Unlike remodeling a dining room or bedroom, kitchen remodels involve gas, electrical, and plumbing, in addition to cabinets, counters, flooring, and appliances. Even if you are considering an inexpensive kitchen remodeling project, working with a kitchen remodeling planning professional can be very cost-effective. They can offer you various kitchen design options within your stated home remodeling budget, help with space planning, plan for appropriate workflow, and assist with material selection, ensuring your kitchen is both functional and stylish, adding to your home's value.

Getting Started: Kitchen Remodeling Cost Estimates
As with any project, it's important to get kitchen remodeling estimates and references from several kitchen design professionals prior to beginning your project. A kitchen remodeling cost estimate will not only give you a concrete idea of the costs associated with your kitchen remodeling project, but the estimate will allow you to see which of your "extras" need to be removed and which can be added back in.
So, if you're preparing to remodel your kitchen, remember this: With some professional help and a bit of planning, you'll be on your way to adding value to your home, without breaking the bank.

Sources:
National Kitchen and Bath Association, 2002 Design Trends Survey Update
Realtor Magazine Online, Cost to Value Report
http://www.realtor.org/rmodaily.nsf

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Advice on How to Save Money on Your Next Kitchen or Bath Remodel

When remodeling a home, the kitchen and bath can be one of the most expensive rooms to complete. Most of the budget will likely go towards the things you just can't live without such as a sink, dishwasher and refrigerator. Selecting quality appliances is essential! With the abundance of brands, styles, colors and technologically advanced machines, it's hard to weed out the good and the bad and pick what's best for you.

The National Kitchen & Bath Association (NKBA) offers tips to make sure homeowners get the most for their money - during National Kitchen and Bath Month and throughout the year!

• Dishwasher - Look for brands with low energy consumption, a delay timer and an economy cycle or half-load button, all which will result in saving water and saving money.
• Refrigerator - One feature worth paying for is a new design to prevent frost build-up in the freezer. By circulating air inside the freezer compartment rather than using a defroster, this feature will help you say goodbye to freezer burn.
• Sink - Reliable sink materials include stainless steel, which can withstand more abrasions, is hygienic and trendy, and fireclay and ceramic which are more traditional for their solidity and wide range of colors.
• Oven - Multi-functional ovens may be worth the investment. Traditional cooking and fan assisted cooking and grilling is increasingly popular. The combination provides cooks with more options such as browning and thawing, among many others.
• Range - Ranges are either freestanding or built-in. Picking one out depends on the design of your kitchen and the features you want. Worthwhile accessories include a cooker hood, splashback, grill, griddle plates, rotisserie, wok burner and fish-kettle burner.
• Tap - A cost-efficient option is the three-way or tri-flow taps that takes away the need for bottled water or other purification system. New models also offer dual-flow for hot and cold filtered water.
• Countertops - Formica and Corian are some of the most common surfacing materials, however new trends such as Luxore®, a non-porous heat and chip resistant stone, and Swanstone®, a reinforced surface with seamless joints, which is moisture resistant and requires no fabricated edges, are becoming increasing popular.
• Flooring - The cost of installing flooring can be as much as the material and harder options such as tile can be tiresome to stand on too long. Softer, more absorbent materials include cork, carpet or vinyl and most of the time, are much cheaper.
  Bathroom Fans - Essential when remodeling to prevent wallpaper peeling, mildew, and to keep the air clean. Look for fans that are powerful enough for your size room and make sure the noise level is to your satisfaction. Utility exhaust fans are great for reducing odors and moisture, such as in the kitchen, while fan-forced heat models are most common in colder rooms such as the bathroom since they provide extra heat.
• Lighting - More light is not necessarily better. Make sure to match the amount and quality of light to the function in that area. Fluorescent lamps use 25 to 35 percent less energy than incandescent lamps and provide the same amount of illumination and last 10 times longer.

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