Updating or remodeling kitchens and bathrooms can be a big undertaking.
But remodeling the right way can earn a homeowner up to an 85 percent return on an investment.
“If you are considering updating your house this year, consider remodeling the kitchen or the bathroom. Those two rooms get the best return on your investment,” Angie’s List owner Angie Hicks said. “But the key here is not overdoing it, but keeping up with the Jones’s. So if you’re the only house in the neighborhood without granite countertops then it makes sense to add them, if you’re not – skip out on that extra.”
A major overhaul might not always be a smart idea, though.
Hicks said that projects should focus on simple items such as updating countertops and cabinetry, so you’re keeping up with the Jones’, not out-spending them.
Projects with a high return on investment: If you’re going to invest in projects designed to improve your home’s value, it makes sense to know what remodeling projects will give you the most return for your money
- Kitchens and baths
- Decks
- Siding
- Windows
Projects with the lowest return on investment: Unless your home is the only one on the block without these items, these projects could actually detract from your home’s attractiveness.
- Pool
- Home office
- Sun room
- Master suite
- Adding a third bay to the garage
Angie’s List tips: How to hire the right remodeling contractor:
Know what you want: Before you begin talking with contractors, read remodeling magazines, search the Internet for designs and materials and put your ideas on paper to give potential contractors a better sense of your expectations.
Get estimates: Get at least three written estimates to review. Make sure the estimates include the same things so you’re comparing apples to apples. Never hire on price alone.
Do your research: Check out contractors in your area using Angie’s List and talking to your neighbors. Ask for references from your potential contractors and call those customers. Try to get a customer who’s been in the remodeled home for several months so you can see how the work has held up.
Require proof of proper license, certification and insurance – if your contractor can’t show that, get another one no matter how nice he or she seems. If your home is older than 1978 your contractor must be certified in lead safe practices – ask for that documentation as well.
Working with a General Contractor (GC): Get everything in writing from the GC, including the names of the subcontractors and suppliers. Ask your GC to provide lien waivers that show subcontractors and suppliers have been paid. Stay in touch with the subcontractors and make sure they’re being paid on time. If possible, make checks out to both the contractor and subcontractors or suppliers, requiring two signatures to cash.
Read the contract BEFORE you sign: Make sure the job details, warranty, payment terms and penalties for not completing work are spelled out in your contract. Documentation is often the best ammunition you have if things go wrong.
Paying for the project: Expect a minor kitchen remodel to cost about $20,000and a minor bathroom remodel around $10,000. Never pay the full cost of a project up front. Your payment schedule should be clearly spelled out in your contract. Tie payment plans to the job’s progress. Most contractors will ask you to pay a portion of the project upfront – which is OK – but you can negotiate that down payment. Hold back the final payment until you’re satisfied with the work.
Communicate with your contractor: Every project is going to have something unexpected pop up. To get the most cost-effective work out of your tradespeople, outline the scope of your project and establish a budget in advance. Make sure you are communicating your wants and needs directly with the contractor overseeing the project
Prepare for the stress/mess of a remodel: Regardless of size, all projects will include unexpected issues that may cost more or delay completion. Be prepared for stress as the project stretches on, work crews enter your home, materials may pile up, or you might have a few days without a working kitchen/bathroom.
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