IS REMODELING WORTH IT?

April 19th, 2007

Now this might seem like an odd question to ask, but an article in today's  Wall Street Journal does a fairly good job of raising the issues involved. Here are some key thoughts:

 

You might love the kitschy look of a 1950s bathroom, with the small, multicolored, multishaped tiles on the floor and shower walls. But when most potential buyers look at that, they either cross your house off their list or mentally mark down the price by the thousands of dollars they'll spend on tearing it out and putting in a new bathroom.Your style is their disaster…A few years ago, one of my longtime friends paid for an extensive remodeling to his New Jersey home, spending on items that he knew weren't likely to come back to him in a higher resale one day. All the real-estate research told him that bathrooms and kitchens are where homeowners generally recoup most, if not all, of their remodeling dollars. But he ignored the much-needed overhaul of his bathroom, and put in a pretty basic upgrade for his kitchen. Instead, he poured more money into enclosing a porch so he could have a year-round room with lots of windows.He loves the new sunroom — and has no qualms about having the old bathroom and a functional kitchen."I may feel differently years from now when I decide to sell," he says. "But I'd hate to spend the next 10 years walking around my house, thinking, 'This really isn't the way I want it, but that kitchen and bath are going to be great attractions when I put it on the market one day.' "

There really isn't a right or wrong answer to this dilemma. But if a Maui resale is going to be a primary goal, when you remodel, do so in a vanilla manner. That is, a manner that will appeal to a broad array of potential Maui buyers. No matter how high quality a remodel may be, if it is too personal, it is going to hurt the resale process.