Remodeling Adds Value
By Lisa Floreancig
Whether it's an outdated kitchen or a too-small master bathroom, remodeling will make all the difference for prospective buyers in making an offer or moving on down the road for better opportunities.
"Homebuyers are looking at a lot of homes to find one that fits their personality. Remodeling gives you a leg up on the competition when it is time to sell the house," says Steve Gray, president/CEO, Steve Gray Renovations, a high-end remodeler in central Indiana. "But we suggest if you are going to put money into a project, you might as well stay for a while and enjoy the work before selling."
Cost vs. Value
In this tough market, remodeling can add tremendous value, particularly if the project focuses on the exterior, kitchen, and/or master bathroom. In fact, in every area of the country, kitchens and bathrooms have the highest return on investment at 85 percent.
"The exterior is always a key thing for people," says Bob Proctor, owner of Maple Road Construction, a central Indiana high-end remodeling company in business since 2001. "We are doing a lot of siding and window upgrades. Energy conservation is extremely important. People are looking more and more at their homes to be more energy efficient as we look at higher heating and cooling bills."
In 2006, Remodeling magazine's Cost vs. Value Report, which looks the average cost of popular renovations and upgrades and the return on investment for each, found the cost of renovations has increased nationwide, while the value added fell to levels not seen in four years.
Kitchens and Baths Rule
"I think every area is different. Here in central Indiana, the market is still strong in kitchen and master bath renovations," Gray says. "I think at the end of the day, people are getting more in return in these areas than national average. Buyers are looking for these amenities."
It is important, however, for homeowners to stay within the means of the neighborhood when considering a remodeling project to ensure the return rate is as high as possible.
"Homeowners need every advantage they can get in selling their homes, and they need to do things that will bring the house up to a certain level," Proctor says. "But they have to be careful not to overspend."
For more information about Steve Gray Renovations, visit www.stevegrayrenovations.com; for Maple Road Construction, visit www.mapleroadinc.com