You’ve moved into your new home--new to you anyway--and now you want to change it. Thus begins the process of furnishing, decorating, and making renovations. According to the National Association of Home Builders, most home buyers invest in some type of fix-up, renovation, or upgrade within the first year of ownership. The amount invested varies and depends on whether it’s a new or older home and if it’s a necessary repair or a wish-list enhancement.

When making wish-list improvements, it is important to assess the return on investment and the types of renovations that will augment resale value. Experts recommend that homeowners take into account the condition of the entire house, the value of neighborhood homes, and any projected property value changes within your town. 

Three Connecticut professionals from the Home Builders Association (HBA) of Hartford County provided insight on the question of return on investment from local perspective. Russell Liljedahl of Liljedahl Brothers Inc. in West Hartford, Dan Morgan of Morgan Contractors in Avon, and Cal Tussin of C. Tussin & Son, also in Avon, have been in the building business for more than twenty years. All are recipients of the distinguished Remodeler of the Year award and have earned one or more of the nationally recognized CGR (Certified Graduate Remodelor™), CGB (Certified Graduate Builders), or CAPS (Certified Aging in Place Specialist) credentials.  Although they are known for building and design work, large additions, and kitchen and bath renovations; they handle a variety of projects.
Kitchens and baths remain high on the list of popular renovations. According to Russ, Dan, and Cal, these projects can range anywhere from $5,000 to $90,000 or more. Cost is contingent upon whether it’s a modest, mid-range, or upscale remodel. 

Russ says, “The kitchen is not just a kitchen anymore, but the great room where families and friends gather, and improvements can run anywhere from a few thousand to the cost of an average-size home. It’s based on whether you are talking marble, granite, or laminates; state of the art appliances and fixtures; imported woods or specially crafted materials. Many people have upscale tastes, and a customer may bring in a magazine photo of a grand kitchen or bath, but it also has a grand price tag.” 
Dan agrees that today’s kitchen has become the focal point of the home, and people want it to be a showpiece. He says, “Even modest to midrange kitchen alterations such as new flooring, cabinet reconditioning, and new fixtures, can approach $10,000 to $20,000.The key is choice of materials and how labor intensive the renovation is. Many people want a bathroom to be a spa, which costs a lot more than a basic upgrade with new fixtures, a vanity, and maybe floor tiles. Materials can run more than half the cost of the job. Cost is also impacted by scarcity of products, cost of transporting or importing, and the international scene.” 

Cal points out that price is predicated on the size of the area and how difficult it is to remove old flooring, counters, fixtures, etc., and install the new. “It’s a question of time, material selection, and complexity of the project. Another factor is compliance with new regulations and safety codes, which may require the use of more materials and more time.  If you plan to relocate in a year or two, invest in cosmetic improvements as opposed to major renovations.” If you invest in  major renovations and move within a year or two, you may not realize a return on your investment.

Other value-adding improvements include a basement refinish,  new siding or deck, roof replacement, expanded storage and closet space, a master suite, family room or sunroom, and landscaping. They emphasize that a basement refinish can be as simple as repainting floors and installing ceiling tiles to an extensive overhaul involving finished walls, a new floor, special lighting, and built-ins. The experts caution new homeowners to start small and be realistic. Many people overextend themselves within the first year of ownership. Also, the do-it-your-self programs often make projects seem easier than they really are. Anything involving plumbing, electricity, or structural alterations can create a safety problem if not done professionally.

* The 2006 Cost  vs.Value Report compiled by Remodeling magazine, a Hanley Wood publication. The report compares construction costs with resale values for remodeling projects in cities across the country. 

To get more information, stop in at the HBA of Hartford County Consumer Education/Information Booth at the 60th Original Connecticut Home Show & Lifestyles Exposition March 2-4 at the Connecticut Convention Center, produced by the HBA of Hartford County. For more information on the HBA or the Original Connecticut Home Show visit www.hbahousecalls.com or www.cthomeshow.com
         

*©2006 Hanley Wood LLC Reproduced by permission given to the Home Builders Association of Hartford County. Republication or dissemination of data from the 2006 Cost vs. Value Report is expressly prohibited without the written permission of Hanley Wood LLC. “Cost vs. Value” is a registered trademark of Hanley Wood LLC. Unauthorized use is prohibited.