Recession-proof Design Tips
I want to remodel, where should I focus my spend?
Most people know that kitchen and bathroom remodels provide the best return-on-investment for the value of their home – often around a 90% return on the cost of construction. But kitchens and bathrooms are also the most expensive areas to remodel, so in terms of ROI they can be high-cost and high-reward.
As always, a design investment starts with your goals. Are you planning to stay in the home for many years? Then don’t focus so much on increasing your home value but keep function and aesthetics for your family as your top priority. If you might be selling in the next five years but still want to enjoy the remodel, make sure you’re designing not just for your family but for potential buyers. It can be hard to keep a vague future buyer’s needs in mind when you’re finally getting started on your dream renovation, but in most homes there is a middle ground between a design that you’ll love and a design that appeals to a broad group of homeowners.
The best areas to focus your remodel will be different for every home, but there are a lot of small things you can do to maximize ROI while making your space more enjoyable and comfortable at the same time. Consider updates like replacing your front door, adding outdoor living spaces like decks and patios, replacing your garage door, or switching out kitchen and bathroom fixtures.
If your home really needs a major remodel, be realistic about what it will cost and think about how the whole house flows together. If you rip out your kitchen but keep those vinyl floors in the mudroom next to it, they’re going to look especially dingy next to the new kitchen. Educate yourself on the order in which construction usually takes place – for example if you want to replace a kitchen backsplash, you’ll want to consider doing your countertops at the same time - otherwise you’ll end up having to rip out your new backsplash tile to get the countertop out if you decide to replace later. Likewise, if updating hardwood flooring, in most homes you’ll want to replace your baseboards at the same time.
Finally, keep in mind that during economic downturns, new construction tends to slow down while demand for remodels can increase. We all know that contractors are very booked up here in the valley, so don’t expect that to change for remodels and have a realistic timeframe of 6-12 months to start construction.
I’m committed to a new build, but I’m worried about rising costs. How do I keep my project on budget?
Home builders are dealing with rising costs on materials, labor, shipping and just about everything else associated with building a home. Hopefully you had a detailed budget from your builder when you committed to your new construction, and that is the time to go through line items with a fine-tooth comb and make sure they are realistic. Every construction budget should have a contingency built in, which will help account for inflation. But depending on when you committed to your build, the reality is that costs have increased significantly and in many cases, something’s got to give.
The key here is communication. If you haven’t already, talk to your builder now about rising costs and how they see your budget being affected. You may need to reconsider the size of your home, number of bathrooms, finishes and materials if your budget is not flexible.
If you’re just starting on your home build journey, working with a designer can help you save money through efficient space planning (since new construction is priced by the square foot) and expert selection of the best quality materials within your budget. Designers will typically specify all materials, fixtures and finishes for the home before breaking ground – which enables the builder to order early and lock in pricing. Also consider what your time is valued at – it can take upwards of 250 hours to design an entire home from drafting the floor plan to selecting every finish detail. While higher-end custom builders may help with the selection process, often choosing all the tile, cabinetry, paint colors, plumbing and lighting is the responsibility of the homeowner and it can take a significant amount of time.
I’m planning to sell my home, but it needs work. What should I do?
We’ve all followed the crazy rollercoaster that was housing prices in the valley over the past couple of years. While most realtors are still seeing some movement, things have definitely slowed down for sellers. So it’s a good idea to make your home the most desirable among competitor listings. A smart remodel will help you sell faster, for a better price and less stress. Before you decide on cosmetic upgrades that will make your listing the most desirable, it’s a good idea to get a home inspection before listing. That will identify any unknown issues or needed repairs that you can fix before you and your potential buyers get any nasty surprises. Then once you know what those repairs will cost, you can dedicate the rest of your budget to your remodel.
When selling, the high-cost high-reward equation of kitchen and bathroom remodels is usually worthwhile. But a lot of people have negative perceptions of home flipping, so make sure to use quality materials. It’s very obvious when walking through an open home if sellers have gone for the cheapest materials possible. For most buyers these days, items like stone countertops are expected, and you might be surprised at the vast range of pricing for these materials. For example, a basic granite costs less than most quartz and can achieve the look that buyers want.
If you’re organized or working with a designer, you can keep a binder of all the materials and fixtures used in the remodel to pass onto the buyer. Knowing they have all the details can be a huge help in setting buyers’ minds at ease. Your realtor and your designer can help advise you on what areas make the most sense to upgrade in your home – keeping local market differentiators and your home’s price point in mind to make sure the time and cost of remodeling is worth it for your individual situation.
This article was originally published in the 2023 Winter Issue of 406 Woman Magazine.
