Friday, August 16, 2013

How Much Should You Spend on That Remodel?

How Much Should You Spend on That Remodel?

OK, here's a question that comes up often in my dealings.

Of course, the answer is always.... it depends.

When you started that bathroom remodel, you planned to redo the floor and paint the cabinets and put in a new shower stall. But gradually you did more and more. Now you’re moving the shower to where the bathtub used to be, you’re bringing in new cabinets and instead of putting down ceramic tile, you’re laying travertine. Have you gone too far? Maybe not far enough? Will you ever get your money back when you sell?

You can get some answers to those questions for metro Phoenix in the 2013 Cost Value Report published by Remodeling Magazine, read by building industry professionals. Read here: to get some idea of what you can eventually get back.

As you might expect, the report says bathroom and kitchen remodels are the most costly and do recoup quite a bit at resale. However, you don’t need this report to tell you that no homeowner ever recovers every dollar spent on remodeling in a resale. But, sometimes you can, sometimes you get more, and sometimes really much more depending on your property and its location.

Let me tell you, it's a case by case review of each individual home. There are a number of factors involved.

The best approach is to call me for the property you would like to purchase, or a current property you decide to renovate to keep or to sell.

So... what about that bathroom? An upscale remodel, described in the report, would more than double the size of an existing 35-square-foot room to 100 square feet. All fixtures would be relocated and replaced including tub, toilet and shower. The new shower would have ceramic tile walls and a frameless glass enclosure. This renovation would cost an estimated $49,349 in Phoenix, according to the Cost Value Report. You would recoup $34,532 at resale – an estimated 70 percent recovery.

A midrange remodel keeping the same bathroom size and footprint but changing all fixtures would cost $15,317 in Phoenix and recoup $12,474 at resale – an estimated 81.4 percent recovery.

One extra “Richard Bazinet” recommendation: In a house with one-and-a-half baths, converting that powder room to a full bath is an investment that can make a huge difference in the value of your house and how fast it sells. Adding a bedroom can be a huge investment in a new value for the property.

And if you live in a luxury, high-end area, a barebones remodel might not fit what buyers want in your house. The same warning fits in a modest subdivision. Overdoing a renovation may not fit what buyers expect to pay for your house. In some cases, a remodeling job out of synch with the neighborhood can detract from rather than add to your home’s value. You see this sort of problem with houses that has been renovated in the wrong neighborhood.

There are many opportunities in the Phoenix Scottsdale market right now, and it's a question of choosing the right ones.

Richard Bazinet - Realty ONE Group - Phoenix Scottsdale Real Estate

How Much Should You Spend on That Remodel?