Remodeling Investments: Bathrooms Continue to be a Good BET!

In this changed market, many homeowners are choosing to stay in their current homes and remodel rather than make a move. But are you concerned that the investment might outweigh the value added to your home? If you are, you would have good reason. There isn’t one remodeling investment that you will fully be able to recoup all of your costs but if you are considering a bathroom remodel for your Twin Cities home, you can expect to recoup a good portion of it.

As a REALTOR®, I have always told homeowners, kitchens and bathrooms sell homes. A recent report from National Association of Realtors (NAR) agrees. While a kitchen or bathroom remodel will not recoup in sales dollars the way it did in years past, both are still important enough to make the list of the eight quick fixes for home value

. In late December, the NAR released the 2009-2010 Cost VS Value Report for home remodels. This study looked at cost data, resale value and percentage recouped for 25 different projects in 80 housing markets across the United States. With a bath remodel, a homeowner can expect to recoup a good portion of their expenses with a 75.4 percent return on investment for a mid-range remodel (about $62,000) as an average across the US but in Minnesota this ROI percentage drops to roughly 65%. On a lower budget remodel (spending about $16,000) the average American homeowner can expect to see a 71.0i% return while the average Minnesota homeowner will see about 65%. The return on investment is down from studies in previous years but as bathrooms are high on a homebuyer’s priority list, I would say bathroom remodeling is a good investment for future resale. (View all the statistics from the Cost vs. Value Report 2009-2010 for the Mpls/St Paul area..)

Before a considering a bathroom remodel, you need to understand “Why” you are undertaking this project. Do you need a new bathroom because the old layout is not functional? Not enough bathrooms in your home? Or is it because you plan to move and the gold ceramic tile and lemon yellow fixtures from the 1960’s are too ugly to get the best price for the home?
To design the perfect bathroom for your home a lifestyle inventory will need to be taken. This is a process where you ask yourself questions to determine the needs and expectations specific to your family for your family. Here some lifestyle questions to consider:

• Who and how the bath will be used?


• One sink or two?


• Shower and tub combination or just a shower?


• Storage, electrical outlets and counter space needs.


• Private areas or completely open?


• Will there be handicap accessibility needs now or in the future?

If you are looking for resale value, trends are important in bathrooms. Here are some of today’s hot bathroom trends:

• Spa atmosphere with muted, neutral colors like beige, olive and sand.


• Multiple mirrorsSoft and natural lighting


• Subdue shiny fixtures…Chrome is out. Choose warm copper and bronze fixtures instead.


• Artistic sinks and granite counters


• Free standing, soaker bath tubs.


• Heated, ceramic flooring.


• Separate tub and shower.


• Furniture-look to cabinetry with wood accents to mirrors, lighting and tubs.


• Bathroom suite with coffee maker and flat screen.


• Environmentally friendly products such as low-flow toilets & energy efficient lighting

Another important consideration is handicap accessibility needs whether now or in the future. Options today go way beyond a raised toilet and grab bars in the shower. Larger doorways, easy access lighting, easy entry tubs, roll in showers, sinks that raise and lower with the touch of a button are just some of the new options available to persons with special needs. If you are planning to stay in your home for a significant length of time, it might pay to review some of the exciting new products available. In Minnesota, I have had the opportunity to meet and work with an accessibility builder/remodeler specializing in totally accessible housing. These model homes feature unique products that make life easier and more enjoyable to persons with special needs.
If remodeling specifically to put your home on the market, take into consideration the quality and condition of the home. A good REALTOR® who knows your neighborhood can assist you here. In most cases, costs for a very expensive remodel will not be recouped in the short run. Working with someone who really understands your particular marketplace will help you get your home staged to sell within your budget and sold more quickly.Spending a little extra time in the planning stage can reduce the headaches and heartaches of a construction project that does not meet expectations. Taking your time will allow you to make the wise decisions that add value to your most important financial investment, your home.

Copyright 2010 Teri Eckholm 

Remodeling Investments for 2010: Kitchens Still Have Sizzle!

Home in need of an update but the current real estate market has you questioning what to spend on the investment? If this sounds like you, you are in very good company! Many people are itching for a change in environment but are opting to remodel rather than move. But what the “what ifs” start creeping in too…Will I ever get the money back out of the remodel? Will the investment outweigh the value added to the home? If you are considering a kitchen remodel, it still could be good choice.

The statement “Kitchens and Baths sell homes” is second only to “Location, Location, Location” in the real estate playbook. Okay we don’t really have a playbook but the annual Cost VS Value Report for home remodels consistently shows that a higher percentage of funds used for a kitchen, bath or basement remodel will be recouped on a sale than most other remodeling projects. In late December, the NAR released the 2009-2010 Cost VS Value Report for home remodels. This study completed by Remodeling Magazine, looked at cost data, resale value and percentage recouped for 33 different projects in 80 housing markets across the United States. Minnesotans have to be a bit more cautious about remodels than in other areas of the country as our value of specific remodels are trending downward. If a homeowner does a major, mid-range kitchen remodel, he can expect to recoup about 64.3% of their expenses which is lower than the national average of 72.1% percent return on investment. A minor kitchen remodel, spending roughly $21,400 in Minnesota will be recouped at a rate of 69.4% again this is less than the national average of 78.3% but a reasonable return. (View all the statistics from the Cost vs. Value Report 2009-2010 for the Mpls/St Paul area.)
Before undertaking a kitchen remodel it is best to understand the “Why” of the project. Is it because your home-sweet-home is perfect except for a kitchen so small that people trip over each other on the way from the refrigerator to the table? Or is it because you want to move and the 1980’s country blue counter and white department store brand appliances have seen better days and should be put out to pasture? The approach to the perfect remodel will be different if you are planning to stay in the home for the long term.
Take a Family Lifestyle Inventory
If you are designing the perfect kitchen for your family, take a lifestyle inventory. This is a process where you answer questions to understand what will be the most important needs specific to your family for the new space. It will help you and your designer to incorporate important details into your plan.
Consider cooking habits:

• One cook or two?


• Baker?


• Left-handed?


• Do you do dishes as you cook?


• Lots of Gadgets?


• Buy in Bulk?


• One oven or two?

Consider eating habits:

• Family gatherings?


• Everyone for themselves?


• Eat outdoors?


• Need morning sunshine?


• Entertaining?

Other Considerations:

• Flat screen TV in kitchen?


• Computer or home office needs?


• Homework?


• Laundry?


• Recycling?


• Will the family grow?


• Older relatives?


• Handicap Accessibility requirements?

All of these are things to consider when making a decision on whether and how to remodel your kitchen. Work with a designer or use a remodeling design software that will take into account the important specific needs of your family.
Hot Trends for Today’s Kitchens
For a remodel to add value at resale, you must consider current needs and trends. So what are the hot for trends for kitchens today?

• Ceramic tile back splashes—One of the cheapest and best ways to update a kitchen!


• Open to Family Room or Great Room


• Custom cabinetry in a variety of heights with lots of moldings and unique woods…Maple and Cherry are preferred to Oak.


• Appliances with Energy Star ratings.


• Energy saving induction cook tops separate from ovens.


• Green flooring choices like bamboo, cork and eucalyptus.


• Sinks with instant hot water systems.


• Pantries and abundant, easy access storage


• Multiple types of lighting (bright to work, indirect for mood). Avoid track lighting.


• Windows for Natural Light


• Quartz-based granite-like counters in products like Cambria, Silestone and Zodiac, for counters and islands, as health conscious people trend away from granite. Too expensive to do the whole kitchen in quartz? Consider just the island in the expensive stuff and do the rest of the kitchen counter in a granite tiles or a complimentary colored laminate.

Stick to Your Budget
Take it from someone who just completed a minor-kitchen remodel this past year, can be easy to get caught up in the remodeling process and go over budget. Take time from the start to reflect on your family’s needs and reasons for the remodel. Consider options that make the most sense for your family, budget and neighborhood. Make certain that the kitchen isn’t designed and constructed at a quality far beyond the value of the rest of the home. Remember remodeling for family use tends to cost more than a remodel for resale.
If remodeling specifically to put your home on the market, go for the minor remodel and take into consideration the quality and condition of the rest of home. Remember you will not recoup 100% of your investment. The changes are being made to make the house more saleable in a down market. A good REALTOR® will give you the best advice as to what is necessary and what is over the top. If you are in an upscale neighborhood where homebuyers will expect high-end quality, don’t make discount-store decisions. Likewise, if your home is in an area of modest or lower value homes, skip the granite and go with an upgraded-laminate to replace dated counters. Understanding the market place you live in will help make the best choices to recoup the most from your investment.
Spending a little extra time in the planning stage can reduce the headaches and heartaches of a construction project that does not meet expectations. Taking your time will allow you to make the wise decisions that add value to your most important financial investment, your home.
 

Copyright 2010 Teri Eckholm http://www.terieckholm.com/

Granite and Stainless Steel Appliances are Over-Rated (and not required) in all Anoka County Kitchens!

As a REALTOR® I have fun watching the HGTV’s remodeling, staging and sell-your-house-now shows but not all the advice is going to make sense for every home and every market. Case in point, kitchen remodels. You’d think watching these shows that the only way a real estate agent can sell a house with a new kitchen is if it has been remodeled with granite and stainless steel appliances. It seems that every real estate agent that walks through a newly remodeled kitchen is either gushing about the “perfect” choice of granite or lamenting about how the new white appliances were the wrong choice.

Here’s the problem…Each show has one agent in a particular town giving a personal opinion based on their knowledge of their market. Time after time I see these REALTOR’s® crestfallen faces as they enter the kitchen as eager sellers show off their beautifully remodeled space where they have chosen…can you believe it…WHITE appliances! The agent will gush over the granite and maybe the tile backsplash or light fixtures then question the choice of appliances. “Why, oh why did you not choose stainless steel?” they often lament. “But you did make an excellent choice with the granite counters.”

Now add in that some of these shows are reruns from a few years back and one has to ask the question, does it always make sense to always use granite and stainless in a kitchen remodel? My answer is no.

A few weeks ago, I showed late 1980’s built four level split in Ham Lake just a few miles north of Blaine. The selling features included a couple of acres with mature trees, a polebarn garage, a just completed four season sunroom and remodeled kitchen. The kitchen had beautiful granite counters and island accented by high end stainless appliances. Unfortunately, it also had the original 1980’s windows that had seen better days. The wood rot was evident and progressing to a point where the windows would require replacing throughout the original part of the home. Add to this the complete lack of window treatments in the new family room which meant there was zero privacy as the bank of floor to ceiling glass faced the street. If the homeowners had gone with good quality appliances and high end laminate counters instead, they could have diverted the thousands of dollars from the kitchen remodel to replace windows and purchase window treatments for the sunroom.

Here’s another point….Even if the home was in pristine condition, it is doubtful that the sellers would ever see a positive return on their granite investment. In fact, in the Twin Cities the average homeowner will see a return of about 72% on their investment on a kitchen remodel…NOT 100%! If homeowners overpay for the materials used, that percentage will no doubt drop like a chunk of granite used in the remodel! If the homeowner intends to eventually sell, upgrades like granite might help the home to sell faster in a slow market, but dollar for dollar return in most cases would be lower than going with high quality laminate in an older north metro Twin Cities home. (For more information on return on remodeling investments see the Cost vs. Value Report 2008 for the Mpls/St Paul area.)

Now had the home been a bit newer and located just to the south in one of the Blaine neighborhoods near the Tournament Player’s Club golf course where everyone (and I mean EVERYONE) has granite and stainless, you bet, that not having these features would be a big negative when the owners went to sell. But this was not the case in a mid-range 1980's Ham Lake neighborhood.

Here’s the bottomline on remodeling your home…If you plan to move in the near future, make required repairs first and be certain your upgrades fit YOUR neighborhood. As a local REALTOR® who knows the Twin Cities North and East Metro, I am here to help!

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Remodeling Investments for 2009: Kitchens Still Sizzle!

No doubt there are many homeowners who a different home but the current status of the real estate market has caused them to reconsider a move and opt for a remodel. But what the “what ifs” start creeping in too…Will I ever get the money back out of the remodel? Will the investment outweigh the value added to the home? If you are considering a kitchen remodel, it still could be good choice.

The statement “Kitchens and Baths sell homes” is second only to “Location, Location, Location” in the real estate playbook. Okay we don’t really have a playbook but the annual Cost VS Value Report for home remodels consistently shows that a higher percentage of funds used for a kitchen or bath remodel will be recouped on a sale than most other remodeling projects. In late December, the NAR released the 2008-2009 Cost VS Value Report for home remodels. This study looked at cost data, resale value and percentage recouped for 25 different projects in 80 housing markets across the United States. In Minnesota, if an homeowner does a major, mid-range kitchen remodel, he can expect to recoup about 72.7% of their expenses which is a little lower than the national average of 76% percent return on investment. A minor kitchen remodel, spending roughly $21,000 in Minnesota will be recouped at a rate of 73.3% again this is less than the national average of 79.9% but a reasonable return. (View all the statistics from the Cost vs. Value Report 2008 for the Mpls/St Paul area.)

Before a undertaking a kitchen remodel it is best to understand the “Why” of the project. Is it because your home-sweet-home is perfect except for a kitchen so small that people trip over each other on the way from the refrigerator to the table? Or is it because you want to move and the 1980’s country blue counter and white department store brand appliances have seen better days and should be put out to pasture? The approach to the perfect remodel will be different if you are planning to stay in the home for the long term.

Take a Family Lifestyle Inventory

If you are designing the perfect kitchen for your family, take a lifestyle inventory. This is a process where you answer questions to understand what will be the most important needs specific to your family for the new space. It will help you and your designer to incorporate important details into your plan.

• Consider cooking habits: One cook or two? Baker? Left-handed? Do you do dishes as you cook? Lots of Gadgets? Buy in Bulk? One oven or two?


• Consider eating habits: Family gatherings? Everyone for themselves? Eat outdoors? Need morning sunshine? Entertaining?


• Other Considerations: Flat screen TV in kitchen? Computer or home office needs? Homework? Laundry? Recycling? Will the family grow? Older relatives? Handicap Accessibility requirements?

All of these are things to consider when making a decision on whether and how to remodel your kitchen. Work with a designer or use a remodeling design software that will take into account the important specific needs of your family.

Hot Trends for Today’s Kitchens

For a remodel to add value at resale, you must consider current needs and trends. So what are the hot for trends for kitchens today?

• Open to Family Room or Great RoomCustom cabinetry in a variety of heights with lots of moldings and unique woods…Maple and Cherry are preferred to Oak.


• Retro-look Appliances with Energy Star ratings.


• Energy saving induction cook tops separate from ovens.


• Ceramic tile back splashes.Green flooring choices like bamboo, cork and eucalyptus.


• Sinks with instant hot water systems.


• Pantries and abundant, easy access storage.


• Multiple types of lighting (bright to work, indirect for mood). Avoid track lighting.


• Windows for Natural LightQuartz-based granite-like product like Cambria, Silstone and Zodiac, for counters and islands, as health conscious people trend away from granite. Too expensive to do the whole kitchen in quartz? Consider just the island in the expensive stuff and do the rest of the kitchen counter in a complimentary colored laminate.

Stick to Your Budget

It can be easy to get caught up in the remodeling process and go over budget. Take time from the start to reflect on your family’s needs and reasons for the remodel. Consider options that make the most sense for your family, budget and neighborhood. Make certain that the kitchen isn’t designed and constructed at a quality far beyond the value of the rest of the home. Remember remodeling for family use tends to cost more than a remodel for resale.

If remodeling specifically to put your home on the market, go for the minor remodel and take into consideration the quality and condition of the rest of home. Remember you will not recoup 100% of your investment. The changes are being made to make the house more saleable in a down market. A good REALTOR® will give you the best advice as to what is necessary and what is over the top. If you are in an upscale neighborhood where homebuyers will expect high-end quality, don’t make discount-store decisions. Likewise, if your home is in an area of modest or lower value homes, skip the granite and go for the laminate to replace the counters. Understanding the market place you live in will help make the best choices to recoup the most from your investment.

Spending a little extra time in the planning stage can reduce the headaches and heartaches of a construction project that does not meet expectations. Taking your time will allow you to make the wise decisions that add value to your most important financial investment, your home.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet or Homebuyers Success Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Remodeling Investments for 2009: Bathrooms Continue to be a Good BET!

In this changed market, many homeowners are choosing to stay in their current homes and remodel rather than make a move. But are you concerned that the investment might outweigh the value added to your home? If you are, you would have good reason. There isn’t one remodeling investment that you will fully be able to recoup all of your costs but if you are considering a bathroom remodel, you can expect to recoup a good portion of it.

As a REALTOR®, I have always told homeowners, kitchens and bathrooms sell homes. A recent report from National Association of Realtors (NAR) agrees. While a kitchen or bathroom remodel will not recoup in sales dollars the way it did in years past, both are still important enough to make the list of the eight quick fixes for home value. In late December, the NAR released the 2008-2009 Cost VS Value Report for home remodels. This study looked at cost data, resale value and percentage recouped for 25 different projects in 80 housing markets across the United States. With a bath remodel, a homeowner can expect to recoup a good portion of their expenses with a 70.7% return on investment for a upscale bathroom remodel and 74.6% on a lower budget mid-range remodel. This is down from studies in previous years but as bathrooms are high on homebuyers priorities, I would say it is still a good investment for future resale. In the Twin Cities area, returns are a bit lower but a bath remodel could recoup roughly 65%. (View all the statistics from the Cost vs. Value Report 2008 for the Mpls/St Paul area.)

Before a considering a bathroom remodel, you need to understand “Why” you are undertaking this project. Do you need a new bathroom because the old layout is not functional? Not enough bathrooms in your home? Or is it because you plan to move and the black ceramic tile and shiny chrome fixtures from the 1980’s are too ugly to get the best price for the home?

To design the perfect bathroom for YOUR home take a Lifestyle Inventory. This is a process where you ask yourself questions to determine the needs and expectations specific to your family for your family.

Here some questions to consider:

1. Who and how the bath will be used?


2. One sink or two?


3. Shower and tub combination or just a shower?


4. Storage, electrical outlets and counter space needs.


5. Private areas or completely open?
6. Will there be handicap accessibility needs now or in the future?

If you are looking for resale value, trends are important in bathrooms. Here are some of today’s hot bathroom trends:

• Pedestal sinks


• White Fixtures


• Subdue shiny fixtures…Chrome is out. Choose warm copper and bronze fixtures instead.


• Free standing, soaker bath tubs.


• Heated, ceramic flooring.


• Separate tub and shower.


• Furniture-look to cabinetry


• Bathroom suite with coffee maker and flat screen.

Another important consideration is handicap accessibility needs whether now or in the future. Options today go way beyond a raised toilet and grab bars in the shower. Larger doorways, easy access lighting, easy entry tubs, roll in showers, sinks that raise and lower with the touch of a button are just some of the new options available to persons with special needs. If you are planning to stay in your home for a significant length of time, it might pay to review some of the exciting new products available. In Minnesota, I have had the opportunity to meet and work with an excellent builder/remodeler, Dave Regel who specializes in totally accessible housing. He has model homes that feature unique products that make life easier and more enjoyable to persons will special needs.
If remodeling specifically to put your home on the market, take into consideration the quality and condition of the home. A good REALTOR® who knows your neighborhood can assist you here. In most cases, costs for a seriously spendy remodel are not going to be recouped in the short run. Working with someone who really understands your particular marketplace will help you get your home staged to sell within your budget and sold more quickly.
Spending a little extra time in the planning stage can reduce the headaches and heartaches of a construction project that does not meet expectations. Taking your time will allow you to make the wise decisions that add value to your most important financial investment, your home.
If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet or Homebuyers Success Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Buying a Home? Check out my new HOME BUYER'S BLOG!
Copyright 2009 terieckholm.com

Remodeling Investments: Bathrooms are a Good BET!

Considering a remodel but are concerned that the investment might outweigh the value added to your home? If you are considering a bathroom remodel, it could be a great investment.

I have always told my clients considering putting their homes on the market, that kitchens and bathrooms sell homes. A recent report from National Association of Realtors (NAR) agrees. In late December, the NAR released the 2006 Cost VS Value Report for home remodels. This study looked at cost data, resale value and percentage recouped for 25 different projects in 60 housing markets across the United States. With mid-range bath remodel, a homeowner can expect to recoup a good portion of their expenses with a 84.9 percent return on investment. This is up from 87.5 percent in a similar study in 2002. 

Before a considering a bathroom remodel, you need to understand “Why” you are undertaking this project. Do you need a new bathroom because the old layout is not functional? Not enough bathrooms in your home? Or is it because you plan to move and the maroon ceramic tile and pink fixtures from the 1950’s are too ugly to get the best price for the home?

To design the perfect bathroom for your home a lifestyle inventory will need to be taken. This is a process where you ask yourself questions to determine the needs and expectations specific to your family for your family. Here some questions to consider:

Who and how the bath will be used?

One sink or two?

Shower and tub combination or just a shower?

What are the storage, electrical outlets and counter space needs?

Private areas or completely open?

Will there be handicap accessibility needs now or in the future?

If you are looking for resale value, trends are important in bathrooms. Here are some of today’s hot bathroom trends:

• Pedestal sinks



• White Fixtures



• Extra-Large Showers with multiple faucets



• Heated, ceramic flooring



• Glass Block and decorative moldings



• Furniture-look to cabinetry



• Solid surface countertops (Corian)

Another important consideration is handicap accessibility needs whether now or in the future. Options today go way beyond a raised toilet and grab bars in the shower. Larger doorways, easy access lighting, easy entry tubs, roll in showers, sinks that raise and lower with the touch of a button are just some of the new options available to persons with special needs. If you are planning to stay in your home for a significant length of time, it might pay to review some of the exciting new products available. In Minnesota, there is an excellent builder/remodeler, Dave Regel who specializes in totally accessible housing. He has model homes that feature unique products that make life easier and more enjoyable to persons will special needs.

If remodeling specifically to put your home on the market, take into consideration the quality and condition of the home. A good Realtor who knows your market can assist you here. If you are in an upscale neighborhood where homebuyers will expect high-end quality, don’t make discount-store decisions. Likewise, if your home is in an area of modest or lower value homes, skip the heated tile flooring and solid surface countertop. Understanding the market place you are in will help you to recoup the most from your investment.

Spending a little extra time in the planning stage can reduce the headaches and heartaches of a construction project that does not meet expectations. Taking your time will allow you to make the wise decisions that add value to your most important financial investment, your home.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com