Questions about kitchen remodel, deck building and value of house....please?

I know there are a lot of posts about kitchen remodels and I've read pages of threads but there are still a few questions I have and hoping people with experience can help.

1. My contractor gave us an estimate that included "allowances" for cabinets, countertops, etc. - I am of course assuming we will go over the allowances but I'm not sure by how much. So approximately how much more money did you spend over the contractor's estimate?

2. If you built a deck, did you go with composite (like Trex) or regular wood and what is your opinion on either?

3. If you sold your house after the remodel, did you pretty much get back what you put into it from the sale price?

4. Did you sign your contractor's contract "as-is" or add additional language or a rider of some sort?

Thanks!!!

Message edited 4/15/2015 8:42:16 PM.

Questions about kitchen remodel, deck building and value of house....please?

I can only reply to your question about the deck. We were all set to go with a wood deck, but when we sat down with the contractor, the price to upgrade to the composite was less than we expected and so decided to go with it, mainly because there will be a lot less maintenance. Yes, the composite gets hot, but so does wood (maybe not as much, but still hot). So far, I have no regrets going with the composite (the brand of ours is Evergrain) - we had it built last summer and it still looks band new, even after this horrible winter. (I have pics in an album)

Re: Questions about kitchen remodel, deck building and value of house....please?

I have not remodeled my kitchen... but I have a dream (someday!).

But I can answer the questions you are asking about resale value:

1) As far as the deck, I'd go with a wood composite, such as Trex. My buyers like that and see it as an upgrade. It just looks better over time and requires less maintenance. (You didn't ask - but do yourself a favor and get the C/O for the deck now, if selling down the road is even a consideration).

2) As far as the kitchen remodel, unfortunately you never get 100% back on what you put into ANY renovation, dollar for dollar. So it's not like if you do a $50K kitchen renovation and your house is currently worth $500K, that it automatically would be worth $550K. However, kitchens are basically the best investment in a house with the highest return on investment. Buyers universally like an updated kitchen. But how much you will recoup depends on a lot of factors.

For example, if were to sell the home immediately after putting in a new kitchen, you'd probably get a high percentage of your reno money back in the sale price. But assuming you are not a flipper, you won't be doing that. If you sell in 5-7 years, then the kitchen reno will still add value, but not as much (as your appliances will be older, styles may have changed).

I think the return on investment also depends on your materials chosen and how well they jive with the house and the area. If you spend $100K renovating the kitchen of a small Levitt home with custom cabinets, high end materials, professional grade appliances, you are overimproving for the area and are not likely to find a buyer who will pay for these upgrades in this area, given the overall value of the homes and the demographics of buyers (lots of first time buyers). Likewise, if you put a basic Home Depot renovation into a sprawling north shore mansion, that's not going to add value because buyers in that price point looking for that type of home are discerning and expect high-end materials. Also, choosing neutral finishes most likely to appeal to the majority helps. I've had buyers turn their noses up at beautifully renovated kitchens because they don't like the color of the granite or the cabinets, and they don't want to pay for someone else's taste in upgrades. They'd rather do it themselves.

So I would renovate for your own needs and enjoyment, and expect any upgrade in value as a perk, but don't expect to recoup every dollar you put in because that will never happen (with any renovation, in any style house or community).

Re: Questions about kitchen remodel, deck building and value of house....please?

Thanks so much for that!

I guess Im just shocked at how much money I will be putting into the house. I may be overimproving a bit but we wont be moving for at least 5-7 years and we want to enjoy. Our other option is moving but from what we have seen in our price range and area, everything needs work too.

Questions about kitchen remodel, deck building and value of house....please?

Excellent advice Christine, and well put.

The only thing I would add is to not put in anything thing might be too way out for 85% of buyers, as that can ruin a deal. An etched glass picture of a nude woman installed on a wall above the bathtub comes to mind from my days as a broker. I had to explain to the seller that no woman wants to share a bathroom with another woman.

Raspberry colored bathroom fixtures also come to mind - where did they even find those?

Message edited 4/17/2015 10:58:32 AM.

Re: Questions about kitchen remodel, deck building and value of house....please?

We just did out kitchen. We went over his allowance for cabinets by $1500, over counter top by $1000
And over backsplash by $400. We also went over appliances by about $1000 or so.

Re: Questions about kitchen remodel, deck building and value of house....please?

We definitely amended our contract to include items that were specific and important to us. Also, we had a very clear schedule of payments related to work progress. Also put in language about passing all inspections.

Do you really want to go through your contractor to buy cabinets and countertops? It may be a bit more work for you, but you probably can get higher quality cabinets for the same (if not less) that you can get through your contractor. Same thing with counter tops, especially if you want to pick your own slab of granite. And honestly, buying cabinets and other materials through your contractor is usually an additional source of revenue for them. However, the convenience of it may be worth it to you.

Re: Questions about kitchen remodel, deck building and value of house....please?

Also, I wouldn't count on getting all the money you put into the renovation back when you sell. It really depends on your local market and where your house is to start. But there's something to be said about being able to enjoy your beautiful new kitchen and deck while you live there, you know? There's value in that!

I would say that as long as you're not over improving your house to make it waaay more expensive from the other houses in the market, go for it!