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Old 12-31-2005, 08:14 PM   #1 (permalink)
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Focus your remodeling dollar

First consider projects that will pay you back in full at resale time
STACY DOWNS
Knight Ridder
Your list of home-improvement plans might look like this: finishing the basement, expanding the master bedroom, adding a sunroom, replacing all the windows, a total kitchen makeover.

Slow down and focus. There are areas in the home where you should concentrate your remodeling dollars if you want to increase the value of your home.

"The kitchen and bathroom are the areas to upgrade," says Thomas Stevens, president elect of the National Association of Realtors based in Washington.

The association's most recent Cost vs. Value Report estimates most of the money spent on moderate upgrades in those two rooms will be recouped. The report can be used as a guide to help prioritize remodeling projects.

In the kitchen, start with the countertops. Keep in mind expectations are rising. Realtors and remodelers have noticed that high-quality materials, once reserved for large expensive houses, are making their way into modest homes.

"People, even on a tight budget, are putting in granite or the more expensive Silestone (engineered stone)," says Randy Metzler, owner of Metzler Remodeling and president of the Kansas City, Mo., chapter of the National Association of the Remodeling Industry. "I haven't priced Formica in about four years."

Brad Baker, who buys, renovates and sells homes as investments in the Kansas City area, uses granite countertops in nearly every kitchen he remodels because he knows he'll get his money back. Stainless steel appliances also are a good upgrade.

But buying expensive kitchen cabinets isn't such a good investment, Baker says, because at first glance it's difficult to distinguish custom-made from budget options. Usually he'll paint existing cabinets or he'll replace the hardware. If they're too beat up, Baker will buy new ones from a home-improvement store. "Stock cabinets look terrific these days," Baker says. "They come in nice colors and finishes."

When it comes to flooring, people should throw away vinyl. People looking at houses usually groan when they see vinyl in bathrooms and kitchens because it makes a house feel dated, says Kansas City real estate broker Gregg Davidson.

"People should go for timeless and not for the hot new thing unless they can afford it," he says. "They should think of things that are natural, that wear well."

House hunters are typically looking for hardwood or tile floors in kitchens. In bathrooms, people want low-maintenance flooring and wall surfaces, says Jan Burchett, executive director of the Kansas City chapter of the National Association of the Remodeling Industry. That means using tile with darker grout on the floor and one-piece slabs of marble or solid surfaces in shower stalls. Baker updates lots of master bathrooms, often installing dual vanities because so many couples want them.

Most house additions, such as creating a sitting area in the master bedroom, aren't good investments for resale. However, additions that enhance outdoor living are red hot -- people tend to recoup costs for adding a deck or patio when they sell their house, Stevens says.

Overlooked Upgrades

Lighting: Cove fixtures and dimmer switches add function and accent.

Trim: Thick crown moldings create a more finished look for a room.

Ceilings: Raising ceilings by cutting into attic space 18 to 24 inches gives rooms a more spacious feeling.
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