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Issue Date: April 6, 2003
5 smart home projects
Our MoneySmart and HouseSmart editors team up to show you the best ways to increase your home's value.
By Jean Sherman Chatzky and Lou Manfredini
Jean Chatzky and Lou Manfredini say now's your window of opportunity to improve your home.
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What a time this has been for homeowners: Home prices have grown steadily over the past few years (7.3% on average in 2002 and an expected 4.4% in 2003). At the same time, renovation costs have risen at half that pace. Couple that with low, low, low interest rates, and the move to improve has taken off.
But which renovations really pay out -- in better livability for your family now and greater resale value down the road? And how much should you spend? Anna Mavrakis, a contractor in Canton, Ohio, says the key is asking yourself how long you're going to stay in this house before you lock into a plan and a budget. If you're in for life, maybe a $30,000 luxury bathroom makes sense. If you're simply trying to make your place look better so you can flip it, you can do a lot with a can of Benjamin Moore Linen White (eggshell finish, of course -- it doesn't show kids' fingerprints).
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Although there are many high-quality regional brands of windows, the major ones noted above will keep adding value to your home even a decade or more from now. In fact, most come with a 10-year guarantee. Expect to pay $600 to $1,000 per window opening. This is one project where a home equity line of credit comes in handy.
Project #2: Interior paint job
Call this the "Trading Spaces" solution: Most of the magic the designers work on that popular (and addictive) TLC show can be attributed to some well-chosen paint. Watch the participants slap it on the walls, and you soon come to believe it doesn't have to be applied professionally (or even well). Wrong.
This week, we look at five popular projects with good potential payoffs. For each, we'll give you the details on how to avoid costly errors, organize the help you'll need to get it done, and get the biggest bang for your buck. Also in this issue, you'll find information on how best to finance the remodeling.
Project #1: New windows
Name-brand windows can be a huge selling point to potential home buyers. If you don't believe us, just flip through your newspaper's Sunday real estate section. We bet you'll find window-brand names like Andersen, Pella and Marvin listed by the real estate agents, along with houses' other salient features (pool, hardwood floors, Sub-Zero fridge). This investment will pay you back in spades, because your windows and doors are the areas of greatest heating and cooling loss. New thermal windows can increase the energy efficiency of the openings by 70%, according to the Environmental Protection Agency, dramatically reducing your utility bills. And "Remodeling" magazine predicts you'll recoup about 75% of your cost when you sell.
Painting is the No. 1 project homeowners tackle on their own. Use a good-quality brand -- and don't be afraid of bold color.
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The key to any paint job is careful preparation. Cleaning the walls, sanding them down and patching any holes accounts for 90% of a great finished product (and most of the toil). Thanks to its relatively inexpensive nature, painting is the No. 1 improvement project homeowners will try themselves. So choose good paint like Benjamin Moore, Ace Royal Touch or Pratt & Lambert, as well as high-quality brushes and rollers. Remember: No matter what the can says, you'll need at least two coats of paint to get the true depth of color and coverage you want (more if you're painting red).
And don't be afraid of a little color here. Deep earth tones like terra cottas and rich golds are all the rage these days. But before you plunge ahead with a full can, rent a sample (bet you didn't know you could do that, did you?) and give a test area two coats. Paint an adjacent area with your trim color. Then take your time looking at it -- in the morning and at night. Only then will you be sure this is the right color for the space.
Project #3: The kitchen bump-out.
If your house dates to the 1950s, '60s or '70s, this is absolutely the best project to take on. Typically, these homes have a small kitchen with a wall separating it from the dining or family room. Lose that dividing wall to create more space, and also consider "bumping out" through the exterior walls to make a small addition. Voilà! -- you've got a lovely room with an eat-in area and lots of counter and cabinet space. A mid-price kitchen remodeling and bump-out may run $40,000 to $50,000, or $140 to $180 per square foot.
Judging by the numbers, it's worth it: Every year, Remodeling magazine does a survey of projects that pay off in terms of resale value. And every year, bathrooms and kitchens come out on top. In 2002, homeowners recouped 67% to 80% of the money they put into a new kitchen and 88% to 91% of the cost of a new bathroom. (Percentages vary by community and whether it is a mid-range or upscale renovation. For example, a mid-range bath recoups 148% in San Francisco and 54% in Columbus, Ohio.)
Of course, that assumes you include the kitchen features most popular with today's homeowners: fine wood cabinets, non-laminate countertop, non-vinyl flooring, industrial-look appliances, an island with seating and an extra sink, if there's room.
Quality cabinets are the first step in getting the best kitchen for your money. No matter what the style, insist on a few upgrades. An important one: solid wood drawers. You'll be opening and closing these a lot, so the last thing you want is a drawer that won't work (or worse, it works for a year, then breaks after the warranty expires). And insist on heavy-duty undermount drawer hardware, which will cost about $15 to $25 more per drawer than plain vanilla. Even if your kids use a drawer as a chin-up bar, you'll still be able to slide it closed.
Countertops are another example of where a little investment can go a long way. Stone tops offer the wow factor, but they're $75 to $100 a square foot. Thankfully, the cost of solid surface materials has come down recently. Corian or Wilsonart countertops can be installed for about $65 a square foot; that's a 30% to 40% savings, but it's still fairly pricey. Remember, mentioning those brand names at resale time should repay you.
Think creatively when it comes to appliances: Designer Mitchell Gold, who makes furniture sold by Pottery Barn, Crate & Barrel and other retailers, says he saved a bundle by buying two stainless-steel Frigidaire stoves instead of one big (and big-ticket) Viking oven and range. The result: eight burners, a double oven and an industrial look at half the price.
Project #4: A Simple Bathroom Re-do.
Just as with a kitchen, you'd be wise to incorporate at least some of today's favorite amenities: double sinks, brushed nickel fixtures, powerful multi-head showers (if not steam ones), toilets in their own alcoves.
Say you have an existing bath that has seen better days, but you don't want to spend $30,000 to turn it into a sybarite's delight. You can create a freshened-up, better-functioning space for an investment of $5,000 to $7,000 for a new toilet, sink and fixtures.
First, stick with neutral tones: Nothing screams "dated" like distinctive colors and finishes. Go for white tile; there are inexpensive but very attractive examples available.
Another way to cut costs without sacrificing a nice, clean design is with a bathroom liner -- an acrylic mold shaped to the exact curve of your existing tub and slipped over the top. A new drain is then installed, and everything is fitted together and given a professional-looking finish. (Note: First inspect behind the existing walls for any water damage. Covering up problems makes for bigger problems -- and bigger bills -- later.)
You can have an acrylic wall liner and tub liner installed for around $2,500 to $3,000. We do recommend you have it done by a professional renovator rather than tackle the job yourself. It'll cost you only 18% to 28% more, because contractors can buy the liners wholesale.
Liners have come a long way since they first hit the market. Lou has one, and despite the wear-and-tear from his four small kids, it's easy to clean and continues to look great. If acrylic becomes scratched or begins to wear after a while, bring it back to showroom quality with a little elbow grease.
Project #5: A finished basement.
Why build out a basement? "Why not?" asks Massachusetts contractor Tru Davis. "It's a pretty good value." How else can you add one-third more space to a two-story house for a tiny fraction of the construction cost and recoup about 80% of your costs when you sell?
Homeowners often get creative with a basement re-do because, psychologically, it seems like "free space," Davis says. What do they add? Home gyms, wine cellars and media rooms in addition to the typical extra bed and bath.
The key to a successful basement renovation is to take a few preliminary steps before you finish it off. First, make sure your foundation walls are sound. Any moisture or water leaks must be taken care of before you start. To test for moisture in the floor, tape a piece of plastic wrap about 2 feet by 2 feet to the concrete floor. Let it sit overnight. If you see water beads on the plastic, you may need to call a basement waterproofing company. If you have a sump pump, make sure you invest in a good backup pump -- we like the SumpGenius, which is available at nextpower1.com -- in case the power goes out in a rainstorm. (No skimping here: Many insurance companies now are limiting their coverage for flooded basements.)
Also consider how you'll heat and cool the basement space. Additional ductwork from your furnace may be needed to supply the area correctly. Just tapping off the existing heat runs that feed the upstairs will "starve" your main floors and not adequately heat or cool either area. Call in a heating and cooling contractor to design and implement these changes -- it's worth it. A freezing, albeit nicely renovated, basement is a space you'll seldom use.
Cover photograph by Michael Nischke, Getty Images.
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