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You're planning to remodel, but not stay.
By understanding how remodeling may affect the future sale of the house, you can avoid making costly mistakes now.
While many people remodel with no plans to leave
their homes, others have short term needs or "wants" that lead them to the contractor's door:
In each scenario, the key is defining your needs and always looking ahead to the future in your new house.
Think About Resale Value
Kitchen and bathroom remodeling projects typically bring the most value in resale. Consumers should approach a project carefully, however, to avoid spending more than they will recoup.
If you have a $200,000 house, you wouldn't put in an $80,000 kitchen because you won't recoup the cost. That same investment may be necessary in a $500,000 to $600,000 house, however, because buyers in that price range expect newer kitchens with modern designs and appliances.
Before starting any project, consider whether it will help make the house more marketable. You may want to add a second bathroom, for example, if it will make your house more competitive with others in your neighborhood. It also may give your house appeal to a wider range of buyers.
The safest approach is to update areas without doing a complete overhaul, said Joanne Ernstsen, an agent with Fuller Towne & Country in Denver, Co. "You don't always have to gut the kitchen and put in new cabinets. Painting old cabinets, putting on fresh knobs and putting in new countertops will make a big difference."
Look at similar houses in the neighborhood to see what types of features they include. If you have a $500,000 to $600,000 house and your bathroom does not have the separate shower, whirlpool tub and a double bowl vanity, you may want to consider updating.
Regardless of your housing price range, focus on projects that bring the house up to the standards of the neighborhood without pushing the price too high. Don't over-improve for your price point, your neighborhood and your style of house.
Consider Minor Renovations
If you question whether a large kitchen remodeling project will pay off when you sell, consider spending approximately $2,000 to replace the floor, repaint the cabinets, change the cabinet door knobs and paint the walls. These changes will make the space more enjoyable for a few years or more marketable when you sell, Ernstsen said.
Besides, it will be easier to recapture that $2,000 in the sales price or consider it the price of your short-term comfort than to recoup the cost of a new kitchen.
Limit Your Spending
As you weigh all these options, rein in any urge to buy the finest materials and finishes. There will be plenty of time for that later, in your next home. After all, you'll soon be selling this remodeling project. Even the most creative sales contract won't allow you to take the granite countertop and European kitchen cabinets with you.
You'll also want to weigh your taste against that of the mainstream buyer. Will that trendy gold sponge painting in the new bathroom turn off more people than it attracts?
"If you want to put in black fixtures in your bathroom, put them in, but realize that you may have to pull them out and replace them before you sell it," Ernstsen said.
A safer bet is to use neutral colors. "People laugh at what they call 'Realtor-beige' carpet," Ernstsen said. "Even though buyers may not choose that color themselves, they can move right in with beige carpet and white walls."
Overall, ask yourself how the new look will appeal to other people.
"I always encourage my clients to be tasteful," said David Tyson, president of a remodeling company bearing his name in Charlotte, NC "Don't put that orange bathtub in--someone else might not like it."
You decide. It's still your house, for now.
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