East Bay Online

EAST BAY - There are many variables that determine what homeowners can expect to recoup from their remodeling investments: The value of the home, the value of similar homes in the neighborhood, the rate at which property values in the neighborhood and area are rising and the quality of the design and construction performed by the contractor.

In terms of your home's resale value, the best home improvements are largely cosmetic - like landscaping, painting, minor kitchen and bath renovations, shingles, shutters, window boxes - and only those alterations and additions that bring your home in-line with others in the neighborhood. "It's very important to conform with other properties in the neighborhood," said Joe Lyman, an appraiser who values many homes in the East Bay and South Coast.

And as important as what you do to a house, is how you do it, especially if the work is visible from the curb. Any additions should blend-in with your home's existing style and the design of the other homes in your neighborhood.

It's all about curb appeal

"One of the most important things I look for when valuing a house is its curb appeal," explained Mr. Lyman. "Windows, landscaping, French doors, shutters, window boxes, nice edging and architectural shingles make a world of difference." And these don't have to be all that expensive either. "When you're putting on a roof, go with the architectural shingles. For a few hundred dollars more, you'll add a whole new dimension to your house - a richness and detail that sets your home apart from the others."

The same thing goes for plantings, bushes, paint and bright flowers. Painting your front door a pretty color, surrounding your home with colorful flowers, these all go a long way towards adding curb appeal. "You want the outside to look as good as the inside," Mr. Lyman said.

"Landscaping definitely adds to curb appeal," agreed Leslie Hogan of Hogan and Stone Realty in Newport. "People will be willing to pay more for your home than the one next door if there is beautiful landscaping, with things like shrubs, trees, flowers or cobblestones."

Mr. Lyman said that doing just a small amount of inexpensive landscaping on your own could increase the value of your home by as much as 5 percent. "Especially if the detail distinguishes you from the others in the area, while still conforming with the overall style."

Kitchens

If you decide you want to redo your kitchen, go for it. But stick to natural colors, classic styling and good quality appliances, as well as functionality - all will increase your home's value, especially if a kitchen is old and dated.

With kitchens, you have to be careful," both Mr. Lyman and Ms. Hogan said. It's very easy to get caught up in fancy finishing materials, sophisticated equipment and really high-end countertops, sinks, backsplashes and floors - which is fine if you're doing it because you've always dreamed of having such a kitchen. Just don't expect to recoup all of the money.

"You absolutely can over-improve and go overboard." Mr. Lyman said, especially if you are out of line with the character of your neighborhood or even your own home. "Trendy always loses out because it's so expensive and will be outdated in a few years," he said. "My advice is to stick with what's classic."

Baths

"The more the better," Mr. Lyman said about bathrooms. Though of course it depends on the number of bedrooms and the utility of the house. But in general, adding a bath or turning a half-bath into a full one - especially if it's next to a bedroom - makes a big difference in what people will pay for your house. "It's the same thing as with the kitchen, though - keep it simple and elegant."

Bedrooms

"Many buyers look at the number of bedrooms in a house," Ms. Hogan said. But don't think that the only way to get more is to put on an addition, which if done in keeping with the home can add value, but is often a hassle and inconvenience. A less expensive way to go is to turn existing space into a bedroom. "Adding a closet to a room officially makes it a bedroom," and is all you have to do to market it that way. It's simple and you don't even have to use it as a bedroom - keep it as an office, sewing room, play room, whatever.

Fresh paint

Ms. Hogan believes that the best way to increase your home's value and be most appealing to sellers is to put a fresh coat of paint on all the walls - your home will look clean, new and fresh. "Stick with neutral colors like beige, cream and white, and don't try to make a statement. You want people to picture themselves living there," she said, and they can't do that if you've painted the rooms funky colors. By the same token, remove all the clutter from your home, from dust to refrigerator magnets to family pictures. "These are distracting to buyers; you want them to focus on your home, not who lives there." Depersonalization is best.

In the end ...

While most of these improvements require some work, there are other things you can do to add value, from putting up pretty curtains, making sure the lighting is done well to refinishing the floors, installing new windows or even adding nice molding. And when it's time to sell, there's a whole slew of easy ways to make your home more attractive and worth more for next to nothing - see the box in this story called, "When your home's for sale ..."

Yet in the end, never lose sight of the fact that it's you who has to be happy in your home. So if you've always had your heart set on a certain kitchen, lavish bath or swimming pool, spend away. It's your home and you want it to be everything you want it to be. It may not matter that you can't recoup the whole cost as long as you get enjoyment out of it. There's a reason why it's called "home sweet home."

When your home's for sale ...

If you want your property to sell for the maximum amount, it's important that you spend time ensuring your property looks its best. This needn't cost a fortune - simply cleaning and sprucing up the most tired parts of a house can often make a big difference. If you're lucky, investing $500 could add $5,000 to the resale value of your home.

* First impressions: Before a buyer has even stepped inside they have already formed an impression. A well-kept garden, pathway and fence and a freshly painted front door are immediately appealing, whereas a scruffy outdoor space with a garbage can outside the front door will turn many prospective buyers away.

* De-clutter: Never underestimate the appeal of a tidy property. Buyers can quickly be turned off homes simply because they are a mess.

* Clean: Dust and clean thoroughly from the top to the bottom of the house, from cobwebs on the ceiling to crumbs and stains on carpets and rugs. Remember to wash down painted walls and clean windows. If you're short on time, call in a professional cleaning service.

* Natural colors: Research shows that despite recent trends in interior decorating, most buyers prefer natural, earthy colors rather than bright, bold shades. Painting walls a pale plain shade maximizes the feeling of light and space and also enables buyers to imagine their possessions in the property. But to keep rooms from looking too bland, use strong colors for accent walls or cushions and accessories.

* De-personalize: Remove personal items, such as family photographs and children's drawings, which may distract potential buyers. Buyers should be looking at your property and not your possessions.

* Maintenance: It pays to keep on top of minor repairs throughout the year rather than waiting until a job is beyond repair and in need of a complete overhaul. In the long run, regular maintenance saves money. However, if you discover that a major job needs doing when the time comes to sell, it is usually worth paying to fix it as it could otherwise have a negative effect on the value of the property.

* Bake cookies: It may have become something of a cliché to bake bread or grind coffee beans just before the arrival of a potential buyer, but scent undoubtedly plays an important role in creating the right impression.

* Most buyers simply like the smell of a freshly cleaned and aired room. Open the windows every day to bring fresh air into the house. Choose cleaning products with a 'natural' rather than a harsh chemical smell.

* Fresh flowers and a bowl of fruit will brighten up a room and provide a pleasant scent.

How much you can recoup

This value report (done in 2002) indicates which remodeling jobs provide the most return.Note that this report is a national average and may not account for peculiarities in your neighborhood. If you build your home so that it's by far the best in your neighborhood, it could underperform in the resale market. Keep your improved home's value just below the top value.

As a guideline, in the best market, where there's room for appreciation, improvements are generally wise if they don't push your home's value beyond 20 to 25 percent above the current value of similar homes in your community

One bit of advice: If you've always dreamed of a certain kitchen, lavish bath or swimming pool, spend away. It's your home and you want it to be everything you want it to be. It may not matter that you can't recoup the whole cost as long as you get enjoyment out of it. The following percentages show what you can expect to recoup when selling the property.

* Bathroom addition mid-range: 94%

* Two-story addition: 94%

* Bathroom remodel upscale: 91%

* Bathroom remodel mid-range: 88%

* Bathroom addition upscale: 81%

* Major kitchen remodel upscale: 80%

* Basement remodel: 79%

* Family room addition: 79%

* Siding replacement: 79%

* Window replacement upscale: 77%

* Master suite upscale: 77%

* Master suite mid-range: 75%

* Window replacement mid-range: 74%

* Exterior painting: 65%

* Major kitchen remodel mid-range: 67%

* Roof replacement: 67%

* Fireplace addition: 50%

* Basement renovation: 49%

- Source: RemodelingOnline

BY AMY E. KARLSON

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