Home Improvement: Relax vs. Re-sale
Posted on May 1, 2014 by bob in Features
by Barbara Ballinger
As fewer homeowners plan to sell, remodeling focuses on personal preference, not return on investment. Before real estate prices plummeted in many markets, homeowners typically remodeled to increase house value. Improving aesthetics and livability was important, but not the top priority.
Now, two reports – the National Association of Home Builders’ “Remodeling Market Index” and home design website Houzz.com’s “Houzz and Home Survey” – each indicate that more homeowners plan to tackle remodeling projects for their own enjoyment, not resale value. This is a result of more people staying in their current homes, due to the slow housing market and plunge in home values. Liza Hausman, vice president of marketing at Houzz, is surprised by the changed focus.
“What people realize is that they’ll be in their homes for a while and can’t expect a quick profit, so their expectations are different,” she says. “They’re making their homes nice and more functional for themselves. At the same time, they’re not going off the deep end and taking out loans, but saving up money or delaying other purchases to afford changes.”
The NAHB and Houzz surveys put kitchens and bathrooms at the top of the to-do list; NAHB also cited window and door replacements, fixing property damage and whole-house remodeling. Houzz’s Hausman named flooring, family room and landscaping changes as highly popular.
Chris Berry, design director of brooksBerry Kitchens & Baths in suburban St. Louis, has seen evidence of this in her own business. Berry has seen kitchen improvements include pizza ovens, high-end cabinetry in novel colors (once a no-no in the seller’s market) and counter heights in scale with an owner’s height rather than the typical 36 inches.
© CTW Features
