When planning home improvement projects, owners often think of the enjoyment they'll receive from the upgrade compared with its cost.
But in an age of rampant house flipping and real estate growth, improvements are more often thought of as investments.
Not all will see the same return, however.
If homeowners want to get the most bang for their fix-up buck, their best bets are in the bathroom and kitchen, experts say.
According to the 2005 Cost vs. Value Report by Remodeling magazine, midrange bathroom remodeling and minor kitchen remodeling on a national average each recouped more than the cost of the job.
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A home office remodeling or sunroom addition offer the worst payback of projects studied, the magazine report showed. Each recouped less than 75 percent of the project cost.
David Anderson, current president of the Home Builders Association of Fargo-Moorhead, says home buyers are willing to pay for updated kitchens and baths - including the relief they won't have to tackle the project themselves. A major kitchen remodeling can cost $25,000 to $30,000, Anderson says.
While Anderson's work often involves gutting and starting over, he suggests refacing cabinets and installing nicer plumbing fixtures.
Countertops and vanities are key bathroom fixtures, says Steve Lunde, president of the
F-M Area Association of Realtors.
In the kitchen, cabinetry, countertops and flooring matter. Instead of expensive granite countertops and ceramic flooring, Lunde suggests newer Formica and vinyl.
"Even changing the knobs on your cabinets sometimes makes a big difference," Lunde says.
Other home projects Anderson recommends for a good return include new siding for enhanced curb appeal. That also ranks high in the Cost vs. Value Report.
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Lunde suggests a fresh coat of paint on all the walls, and new carpet in family and living rooms.
"Carpet does help sell houses," he says, adding that it's not as important in bedrooms.
Keeping upgrades modest may be wise, according to an article from the National Association of Home Builders. Any remodeling project that brings your home up to the level of your neighbors' is a worthy investment, the article says. But remodeling investments should not raise the value of your house to more than 10 to 15 percent above the median sales price in your neighborhood.
Nathan Hamblin, department supervisor of kitchen, bath, appliances and plumbing at Home Depot in Fargo, sees this principle in action when customers pick out new countertops, cabinets, light fixtures and storage units.
People planning to sell their home will upgrade a little bit, Hamblin says. But those who spend the most on projects plan to live in them awhile, confirming that the enjoyment factor still reigns.
Readers can reach Forum reporter Sherri Richards at (701) 241-5525
