Whether of not you plan to sell your house in the near term, resale value should always be a consideration whenever you are planning out a home remodeling project. In fact, you should be thinking ahead to resale before you even buy a house, because you never know when circumstances will change.
Now, having said that, my opinion on the subject of resale is this. You can either make your house generic to appeal to the masses, or you can make it special so as to appeal to the niche buyer.
If your house is pretty much generic, such as part of a development of similar homes (e.g., tract, PUD, etc.), the sale is mostly driven by price, which is a dicey proposition in a weak housing market. But if your house is unique or special in some way so as to fit the particular preferences of only a handful of niche buyers, they will pay more for it ... although it might take longer to sell if no such targeted buyer happens to be prowling your market at the moment.
A major consideration for you in the project planning stage -- or even before you purchase a home for enhancement and resale in the first place -- is to decide what market you envision for the finished product.
In my experiences performing dozens of remodeling projects on several homes over the past 16 years, some of the houses could be described as your basic California single-story ranch-style home on a flat lot, which in general has pretty broad appeal. However, one house with its reclusive hillside setting and acres of avocado orchards, and another with its two-story farmhouse design and horse facility, each appealed to a much narrower spectrum of buyers.
But contrary to what you might have heard, uniqueness is not necessarily a bad thing. Although it might take longer to sell a home with unique features -- and many prospective buyers indeed will not be willing to pay extra for them (and might not want the house at all because of them) -- that smaller group of targeted buyers who are seeking special amenities (such as a horse barn, tennis court, guest house, or swimming pool) generally will be willing to pay up for them. All things considered, I prefer to make a house somewhat unique and special ... but that doesn't mean crazy, artsy, or eclectic!
Focus on high-value projects
It is important for you to focus on high-value-added projects that are appropriate to your market and neighborhood. Of course, many home upgrades will not return the value invested through enhanced sales price -- although they might be appropriate anyway if you are doing it for your personal enjoyment. Just know in advance why you are doing the project, and don't naively assume that any project you do will give you a dollar-for-dollar increase in home value.
A swimming pool might fit into this category. Many homebuyers have no interest in dealing with a pool. However, if you really want one for your own enjoyment, you still should think ahead toward eventual resale and try to optimize its impact on home value. For example, think about placing and designing the pool in harmony with (and perhaps as a focal point of) your landscaping, i.e., think of it as a clean, soothing, and decorative waterscape, and make it as appealing as possible. The overall feel and marketability of your property will be greatly enhanced versus simply plunking a basic concrete & plaster pool and cool deck in the middle of your yard with a toddler fence around it.
Another example might be an elaborate master bathroom, with huge Jacuzzi tub, sauna, and built-in flat-screen TV. Sure, it might be your dream bathroom, but will it really fit with the rest of the home -- or the rest of the neighborhood for that matter? If you have a top-to-bottom luxury home, it might be completely appropriate, enhancing both your home's value and its appeal to that niche buyer.
Otherwise, consider whether the expense will only turn off the target buyers as an extravagance. If you are in a modest neighborhood of similar homes, be cautious of overdoing the appointments relative to what is common in the neighborhood. Although a tasteful extravagance would probably help the house sell faster, it may not add much to the price. So ask yourself, how much will this project really add to the value of my home?
Also, consider the lifetime cost of an upgrade, especially if you are planning to stay in the house for awhile. As an example, vinyl-covered wood-frame double-pane windows might be desirable for their triple benefit: strength, energy efficiency, and low maintenance.
Plan in Advance! You have heard it many times before: If you fail to plan, then you plan to fail. So start by seriously asking yourself questions like these:
- What am I trying to accomplish? Am I fixing up the house to sell, or do I just want to create a more pleasant living environment for my family?
- Does the house need major repairs that will require permits and contractor involvement, or are these projects that I can tackle myself?
- Should I stick to a firm budget, or can I use a flexible checkbook to pursue my vision?
- Do I want to immerse myself in this and get it all done as quickly as possible, or do I want to take my time and try not to get stressed out?
In any case, don't spend impulsively or frivolously! This is a trap I have fallen into, since I'm somewhat impulsive by nature. Write out a plan of some kind. It can be dynamic and changeable, but at least you'll have a basis for assigning priorities and making choices.
And keep in mind; many couples end up on the brink of divorce when they take on home projects due to either the mess, the stress, the duration, conflicting ideas, inequitable division of duties, or the financial burden. So be prepared for this before you get yourself knee-deep in it. It might be better to start small and take on each project piecemeal.
Be smart but not cheap. Seek value in your choice of projects, materials, and contractors. Ideally, all of your expenditures will increase the value of your home by at least the same amount -- but of course, there is no telling for sure when it comes to the future market price of the home.
Finally, allow me to leave you with my personal design credo:
Seek simplicity, comfort and value!
Simplicity means muted neutral colors, bright, open, airy, spacious, and uncluttered. Comfort means designing for function, usability, and durability rather than purely for style. And Value means cost-effective quality, i.e., always seeking good quality for a reasonable price.
If you keep this simple phrase in mind, it will go a long ways in helping you to dramatically and affordably transform your house
Copyright 2008 by Laura Martindale
Laura Martindale is a freelance design consultant and self-taught home remodeling expert. She has performed dozens of home remodeling projects on numerous homes over the past 16 years. Her specialty is dramatically and cost-effectively transforming a house without major remodeling. You can learn more by visiting http://TransformYourHouse.com
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