Posted June 16, 2010 by

Big Home Additions: Out of Fashion

 

As a continuation of my previous blog, Money Magazine’s second point is that remodeling beats adding on in terms of return on your investment.  With the current economic climate I have recently read numerous articles about this topic.  Capture the quality within the home without risking an expensive add-on.  As American’s learn from this recession there is a fundamental shift towards quality over quantity and towards making little changes to reap benefits over a longer period of time.  The move from SUV’s to more fuel efficient vehicles is one example of this shift.  Multiple news articles today are touting the fact that more square feet doesn’t give you the return that remodeling what you have in an efficient way does. 

Despite the recession home remodeling is supposed to increase 5% this year, but the reasons for the remodeling have dramatically shifting towards people enjoying their homes rather than adding huge bonus rooms or master suites in an attempt to re-sell their homes for a huge profit.  Gone are those days – and call me pessimistic but I doubt we will ever see that again for several decades. 

As more people realize they may be staying in their homes longer than they expected they are starting to redo what they have to make it work better for them.  The best way to do this is knocking down a wall or two to open up the living areas and kitchen space.  Make it function better.  Flow better.  And allow families to enjoy the space they have. Adding on will also mean nothing if the rest of the home 1) isn’t remodeled also to keep up with the add-on or 2) the space in the rest of the home is wasted or not as efficiently laid out… so focus on what you have first.  Even home improvement stores report an increase in home décor sales such as tile, paint, new cabinets, lighting etc. or small improvements that can make a big difference.

Furthermore, as banks tighten lending requirements the ability to get a home improvement loan is tougher especially when there is no guarantee that the improvement will lead to home appreciation.

Out: Adding on a bathroom

In: Upgrading current bathroom fixtures, lighting, paint, mirrors, getting low water flow toilets (I just bought a Toto!); add spa like affects without a large jetted tub

Out: Major Kitchen Remodel

In: Keeping current kitchen footprint, remove a wall between dining or living room, add energy efficient appliances, new fixtures, lighting, granite counters, or cabinets.

Out: A master suite addition

In: Finishing out attic or basement space without affecting the structure (structural changes get expensive fast!)

Other trends in remodeling include making bathrooms and kitchens wheelchair friendly for baby boomers who anticipate the future in their homes.  People are also making “invisible” upgrades such as insulation to help reduce carbon footprint and utility bills.   More on smart project to come….

Garskof , Josh. “Six Ways to Ensure a Project Pays Off.” Money January/February 2010: 58-59. 

Mcqueen, M.P. “The New Rules of Remodeling.” The Wall Street Journal 4 May 2010. http:finance.yahoo.com/family-home/article/109389/the-new-rules-of-remodeling. 5 May 2010.