Have you seen the new show on HGTV called “Bang for your Buck”? The goal is for two experts, a real estate agent and a designer, to compare three renovations of the same space, within the same city, all with the same budget, to see who got the best return. I just saw the one that just aired comparing three $65,000 kitchen renovations in the city of Phoenix, Arizona. Since my husband and I did a major kitchen renovation just 3 years ago and spent nearly twice the national average, I found this story particularly interesting.
I LOVED the first renovation. that was beautiful! In fact, his cooking reminded me a lot of mine. They chose dark walnut cabinetry, contrasting white quartz countertops, dark hardwood floors (which you wanted so badly, but too practical to get), and high-end stainless steel appliances. They sacrificed an eat-in kitchen space for a bar that offered more storage space and better suited their lifestyle. At first glance, you wouldn’t see anything wrong with this until you start to assess where the house was located etc.
EXPERTS: This is a 3 bed, 2 bath mid level home with a big “wow”; they improved too much for the neighborhood.
OWNERS: There is no such thing as over-improving. We don’t want to spend as much as everyone else because when it comes time to sell, our house is still the same as everyone else’s.
ALICE: In real estate, there is over-improvement, “IF” your ultimate goal is to recoup all the money you invested in selling the house. Spending the same amount as everyone else does NOT necessarily mean you’ll get the same results. Obviously, these 3 renovations are a perfect example. They each spent $65,000 and got completely different results. This couple has great taste and even if they spent 50% less, in all probability, they would have achieved fabulous results. They definitely could have achieved a similar look for less.
EXPERTS: Removing the kitchen-dining room from a bar was not a good idea.
OWNERS: They didn’t need two spaces to eat; they wanted more storage space and a bar for entertaining.
ALICE: I agree that not having an eat-in kitchen could hurt them when it comes to resale because, judging by the specs, it looks like a beginning family neighborhood and not having an eat-in kitchen would not be suitable for families with children. Because they are a young couple with no children, they have not considered that a problem. Ultimately, since the house is so beautiful, I think the buyers would forgive him and just make the necessary adjustments.
EXPERTS: The glass mosaic backsplash was a bit of a concern, too much of a commitment.
OWNERS: That was our personality. People worry too much about neutrality and forget about their personal lifestyle. If you are going to live in a house for 5 years, make it yours.
ALICE: I agree with the owners. Sometimes neutral is taken so literally to the extreme that you end up with a box of vanilla = BORING! My own glass mosaic tile backsplash gets compliments all the time.
EXPERTS: The stainless steel appliances (built-in fridge and oven) were all top of the line; they have the best cuisine in the neighborhood, but people are not going to want to pay for it.
OWNERS: This is how we want to live in our kitchen. That’s what worked for us. We know we spent more, but that’s what we wanted and it was our waste.
ALICE: I totally agree with the homeowners again. I, too, created my “dream” kitchen to some degree, knowing that it is the best kitchen in the neighborhood. Will we recover our investment? In this market, NO. When the market was up, YES. In time, MAYBE. Regardless, this is what I wanted and would not have been happy with anything less. At that point, he was already cutting back to try to keep the budget as low as possible. My biggest regret is not spending the money on radiant heat floors. Trust me, during the colder months, my husband and I kick ourselves every day! Again, as long as the owners accept that they have spent more for personal enjoyment and not necessarily for resale value, they will be fine.
LESSONS LEARNED: Don’t improve your area too much. Consider using alternative materials to save money, but don’t sacrifice your own wishes for the sake of resale. You should customize your home to suit your lifestyle and taste, as long as you understand that you may not get back all the money you spend and that you may need to change some extreme customizations when it comes time to sell.
Stay tuned for Part 2, where I address the lessons learned from the other two revamps.