Whether it’s just one room or an entire house, renovations are a major undertaking. These projects require time, energy and cash. From investors planning to rent out or flip a property to the average person buying their first home, every renovation decision made now can impact the return on investment in the future.
While finishes, appliances and construction choices aren’t the only factors that affect resale value—they are essentially the only things sellers can control. So, will spending extra on a marble floor in the bathroom today feel still feel a smart idea five years from now? The experts weigh in.
Homeowners Gut Renovating From The Outside In
Jocelyn Minton, founder of Mind Over Media PR and her husband Jonah Minton spent approximately two years renovating the home they recently moved into.
The house was essentially a teardown. But because the property is located in a historic preservation zone, every square inch of the 1921 Spanish style home had to be gut renovated from the outside in. Just two original features remain—the carport, which was grandfathered in, and the façade, which had to be restored.
The first and one of the most important things the couple did was assembling the best possible team. The Mintons hired Rob Diaz and Anastasia Ratia to build and design their new home. “They had an amazing vision that we knew was going to transform the property into the house we always wanted to live in,” explained Mr. Minton.
They also hired interior designer Demetra Chazanas to help choose furniture and accessories that would look best with the new style of the home.
Many structural elements of the house had to be replaced both for the sake of habitability and resale, including installing a new roof and foundation. All of the electric and plumbing was replaced. The floors were leveled and ceiling raised. The Mintons are also in the process of turning the garage into an additional dwelling unit to add resale value.
While the original footprint was just over 1500 square feet, they expanded the home to nearly 2000 square feet. Luckily, there was still space left to build a pool in the backyard.
The Mintons added a master suite which was a feature they wanted not only for themselves, but also for the sake of resale value. The same idea applied to the family room and kitchen, which they opened up by removing a wall.
Resale value was the biggest influence in every decision involving the new kitchen. “We did think about resale value when choosing important pieces like plumbing hardware and kitchen appliances. We invested in top of the line brands to make sure we captured all of the value of the property later on.”
The Mintons originally planned to purchase Sub Zero Wolf appliances, but they realized they could save approximately $10k by going for Thermador instead. Mr. Minton explained, “We asked our real estate agent, Pete Buonocore, who helped us buy the property, if we would be making a decision that could impact resale later on. He said that it wouldn’t matter [because] Thermador is still a high-quality premium brand. He likened it to buying a Porsche instead of a Ferrari.”
Ultimately, the Mintons were very happy with all of their decisions and didn’t feel they had to sacrifice anything in order to achieve their aesthetic goals while maximizing potential resale value.
Floor Plans
When it comes to an overall floorplan, buyers are seeing less rooms as more, according to Los Angeles area Realtor, Breanna M. Webb. “I have seen a lot of investors flip four bedroom homes with no true master and turn them into three bedroom homes with master suites. They appear to sell faster and for more money.”
Webb observes the smartest investors are buying open concept homes or renovating traditional homes to have open concept floorplans. “Even smaller homes can appear larger with a wall removed or opened up,” she says. “When I first meet with new buyers, the most common things they are looking for are open floor plans and a large open kitchen.”
Kitchens
Kitchens require some of the costliest and most labor-intensive renovations. One of the biggest expenses is cabinetry according to Karen Williams, who is the principal and creative director of St. Charles New York. She says that a high quality but not highly stylized installation will retain its value. “[Choosing] a transitional style of cabinetry will allow the new owner to personalize it with their own flair. They can make it more modern or traditional with accessories, stools and a simple paint or wallpaper change.”
While Williams doesn’t necessarily think cabinetry needs to be white, which has been a major trend in recent years, she says that lighter colors give the most options. “I suggest a softer gray [or] white with a matte finish. One of my favorites is Farrow and Ball’s Cornforth.”
Jean Stoffer who is a designer with the Property Bros’ new venture and website, Casaza agrees that when it comes to kitchen renovations, neutral is best. “You may absolutely love lacquered neon yellow, so paint a wall that color. Do not order your cabinets in this color!”
Another problem Stoffer mentions is overly customized kitchens. “In the US, our standard kitchen counter height is 36 inches. I have seen remodeled kitchens with both lower and higher than standard countertops, customized for the height of the owner. This is typically a bad decision because it automatically feels wrong to anyone standing near the counter.”
Style confusion is another issue altogether. A kitchen remodel should really flow with the architecture of the home Soffer explained. “It doesn’t have to match the home’s architecture, but it has to somehow correlate to it. You don’t want to feel jolted when you walk into the kitchen and think it doesn’t belong here. For example, putting a coastal, beachy looking kitchen in an English Tudor just wouldn’t feel right.”
Scale and layout are two other factors which greatly affect kitchens. Jessica Davis, who is also a designer with Casaza had a client that had zero understating of scale. His already small kitchen not only had a lack of prep space or proper working triangle, but he also insisted on purchasing appliances that were too large. “Because he could not budget for what he considered to be the most high-end appliances at the time, he opted to move ahead with the appliance replacement only and even went as far as adding larger appliances and an additional full-size beverage center (basically another refrigerator). Against my advice, this client ended up with appliances that were overpriced to the value of the home, and even less storage and prep space.”
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