Renovation Reality Check

So often we become inspired by the renovation shows we see on television and we gather up motivation to do the same in our homes. More often than not we are faced with the brutal reality of the renovation world, and that is it is much harder, more costly, and more time consuming than what is portrayed on television.  There are other concerns as well. This is a renovation reality check.

High end finishes in a low end area-
Concern one is make sure you understand your home and its market value! Not planning on selling? Doesn't matter, you still need to know. Why? Because not knowing what your local housing market is doing with regards to improvements and finishes can come back later on to bite you. Always, always do what you love, but understand what you love may not always pay off later, even if you aren't trying to sell. High end finishes are beautiful and seem like the way to go provided you have the budget for it but if no one else in your area are doing high end finishes don't assume your high end finishes will necessarily command top dollar.  The bathroom photograph to your left shows improvements made to a starter home. No high end finishes were needed, just an improvement in this homes function and pleasing to look at was all it took to get this little starter home sold after three showings. Incidentally this bath renovation was done under the assumption that the homeowner was not moving any time soon. However, as this post states, life can change on a dime, and this renovation was done in keeping with what the market in the area would bear, and thus paid off.


Your home's "potential price point "-
Your potential price point may suggest that most buyers will not necessarily expect nor want to pay for high end custom cabinets, etc. Still think you don't need to -concern yourself with what a buyer may want?  Remember the future is the great unknown. Life changes on a dime, sometimes we're forced to sell due to illness, changes in lifestyle, jobs, etc. So even if you don't think you're in the market, design and plan your renovation as if you were, it's just smart thinking.

Your home's "potential buyers" -
Know your potential buyer. Again, regardless of whether you think you are going to sell or not this is a good guide in place for your renovation reality check. Ask yourself if your home would likely sell to well established large families, couples just starting out, or something downsizing retirees would gravitate towards. Why is this necessary? Well a big home with 3 or more bedrooms would likely appeal to a family with teens, and middle aged parents, a smaller home with 2 or more bedrooms would appeal to young first time buyers, a home with 2 or less bedrooms and on the small side might appeal to downsizing retirees. All ages will have different expectations with regards to form, function, layout and finishes. Young first time buyers may want modern looking upgrades, but not necessarily expensive high end. Chances are if it looks modern, even if it isn't expensive they will appreciate it.  Middle aged established families will notice the size and bedrooms of your home and  no doubt expect a little better quality in the design and finishes. Not necessarily high end, but cheap will get passed by.

Don't go on  a sentimental journey-
Knowing your homes market value is tricky. Do not let sentimental value effect your judgement. This can mean loss of money not a gain. Check online realty sites like Zillow.com, Trulia, etc. and look up homes in your area. Many that are for sale have multiple pictures. Focus on the homes in your area that are same size square footage and are similar with regards to bedrooms, etc. Study the photographs, what sort of finishes are they using in their homes for the price they're asking. Try to be analytical, not critical.  Notice what selling features are mentioned in the listings. Does your home fall inline with these features? Whether you go high end or not, as a homeowner you can not afford to make costly errors in judgement.

Kitchen Remodel, How much should you spend?

It is great to be able to spend money on a complete kitchen remodel, if you have the funds to do so. However, for every day people, money for such projects is hard to come by and in many cases, do not yield a big return investment wise.  Well I am sure you have heard that kitchens and bathrooms sell homes and this concept has been reinforced many times on television remodel shows,etc. The truth is, you may not recoup a majority of your expenses. You may only break even, or even lose some money. Why is this? Simply put, its all about where you live and what your neighbors have that dictates whether your money is well spent.

Consider this. If the homes in your existing neighborhood all have dated kitchens and are fetching at or below market value, you may want to scale back your improvements if you're looking to make money off your efforts. Dated homes take longer to sell but if you have many in your neighborhood the buyers looking are not expecting to pay far more for your lavish updates. You'd think just the opposite would apply, your updates should set your home above the rest, and command a better price. Unfortunately that rarely is the case.

So what can you do in this situation? Well you might want to scale back your project. If most kitchens in your neighborhood have laminate counter tops, that is what buyers in that  price point expect to find in your home. That doesn't mean you can invest in nice laminate though. Wilsonart has incredible updated styles that would surely appeal to a buyer, but save you thousands at the same time. Dated old wood cabinets in other homes on the street don't mean you're stuck either, but you may want to considered giving them a fresh new look with paint. Flooring too can be freshened up using some of the tile look alike peel and stick varieties and again save you thousands.
Here's an example of what paint can do for a kitchen, that can stand out and be noticed.