Home Renovations That Offer the Best ROI for Resale

The following is a guest post by GUSTAVO GONZALEZ, Senior Manager of Content and Multimedia at Coldwell Banker Real Estate, LLC

Looking to make some upgrades and wondering which will have the biggest payoff? If you guessed kitchen and bathrooms, you're spot on. Another good one is landscaping. Whether they're big or small, a few upgrades can pay big dividends when it's time to sell your home. Follow these tips to prioritize and put more money in your pocket when you're ready to sell.

Before you do anything, make sure you consider the value of your house, the neighborhood, the housing market where you live, and how soon you will sell after you make the improvements. If you live in a neighborhood where properties are selling for $300,000, doing a $150,000 renovation may not add as much to your property value as you might think.

Kitchens and Baths
One thing to keep in mind is that just because a remodel is expensive doesn't necessarily mean it will give you the best return on investment. Even minor updates can yield a big return. Consider painting, refinishing surfaces, and upgrading appliances, which can lead to a big payout.

Sticking to a budget is always important, and keep in mind that an average, medium-sized kitchen remodel can cost between $20,000 – $50,000, while the average bathroom remodel is $10,000. In most cases, homeowners see a return of 100% or more with a kitchen or bath remodel, so it's definitely worth the investment. Plus, you get to live in a beautiful new space.

A Finished Basement
If finishing your basement is something you've been putting off, now might be the perfect time. According to cost versus value surveys conducted annually by Remodeling magazine, "The average return on investment for a basement project is around 75 cents on the dollar. Besides the financial gains, refinishing a basement will add new functionality to your home: more bedrooms, more efficient storage, and more space for entertaining." Seems like a sure-fire win, win.

Add Curb Appeal
When buyers see that the outside of the property is taken care of, they'll be more excited to see the inside. Remember, first impressions make lasting impressions. According to Anji, "Curb appeal can increase your home value by 7%. Buyers are increasingly prioritizing outdoor living spaces and an attractive lawn has the biggest ROI at 256%. Trees can add $1,000 to $10,000 to your home value and simple landscape maintenance tasks usually pay for themselves."

Whether you're in the market to sell your home or just want to make some budget-friendly renovations that you and your family can enjoy, making the right upgrades can help enhance your quality of life and add a few more dollars to your bank account down the road.

How to Choose a Contractor for Your Remodel Projects

Delta Media Group

Homeownership is an exciting time — one filled with many new possibilities and experiences. One possibility that has the potential to elevate your home to the next level is a remodel. Remodeling can transform your space into something more functional by better reflecting your lifestyle and adding value to your home. However, your dreams of the perfect renovation project can turn into a nightmare if you don't do your homework. To have a successful remodel, you need the right contractor.

It's understandable to want the best person for the job but finding that person often involves a number of factors like availability, cost, and areas of expertise. The best way to choose a remodeling contractor is to do your homework and take steps to ensure that you find an ideal match for your project.

Ask around or research

If you have a friend or neighbor who has a remodel you like in a room/area you're looking to work on, too, it can be helpful to ask them who they used. You can also ask around your network of people — i.e., friends, family, business partners, or your real estate agent—to get recommendations for remodeling contractors. Once you have a list created, make your own as well by researching resources like Google, Angie, the local Better Business Bureau, and other online places that give you the names of local companies. Weed out any contractors with consistently poor reviews or contractors that don't specialize or have experience in the space you want to remodel.

Look deeper into credentials and projects

Most contractors have a website. Take the time to look at what credentials they may have and if they are current. See if they have pictures of their work as well. You can begin to get a feel for which contractors are more your taste or that have the knowledge necessary for your remodeling project.

Interview possible contractors

The next step once you have fine-tuned your list to a few favorites is to call and schedule a time to meet and talk about the project. Consider both the phone and in-person meetings an interview. It's your chance to ask about experience, find out about their knowledge and skills, and see if you mesh. Like any job interview, you'll be able to get an overall sense of who you're getting. There are also some things you'll want to ask them or have them do, including:

• Itemize your bid
• Ask how long they have been in business
• Determine who their main suppliers are and who will be in charge of the site/project
• Find out if the pricing is an estimate or a fixed price.

Check references

Even if you've done all your online research and read all the reviews, nothing is as effective as talking with someone who has worked with your prospective contractor. You may find out things you didn't think to ask, and it can give extra assurance that you're making the right choice.

Put it in writing

The last thing you'll want to do when you've made your choice is to put it in writing. This is a great way to keep all parties on the same page and safeguarded. 

Homeownership means making the decisions; it's your house, and you get to choose who remodels it. For the best remodeling experience, by taking your time and the correct steps, you're more likely to find the right person for your project. Not only will it save you time and money, but it will also get you the home of your dreams.

An island makes a wonderful addition to your kitchen, adding an extra workspace, seating, and storage. Besides its practical benefits, a kitchen island can also transform your kitchen's appearance by creating a stylish focal point. From the shape of your island to its color and features, your options are nearly endless, so you can design an island that suits your needs and style.

Our real estate agents suggest the following creative ideas for your kitchen island:

• Think Beyond a Rectangle
  The traditional shape for a kitchen island is a rectangle, but that doesn't mean it's the only one. A kitchen island that's slightly curved, fully circular, or a combination of a rectangle with a curve becomes a statement piece due to its unique design. And depending on the shape you choose, your island may be more functional. For example, a triangle shape creates more room for seating around your island.
  
  
• Add Shelves to Showcase Displays
  Although islands provide many practical benefits, they can also give your kitchen's aesthetics a boost. Incorporate some open shelves within your island to display your favorite cookbooks, glassware, vintage items, or other collectibles. The more interesting and colorful, the better.
  
  
• Make it Colorful
  You can always match the color of your kitchen island to the one used on your cabinets, but why limit yourself? A burst of cheery, red, orange, or bright blue can instantly turn your island into a statement piece. On the other hand, if you have dark cabinets, a light, muted shade can have a big visual impact.
  
  
• Go for an Industrial Vibe
  If you have an industrial style in your kitchen, you can extend it to your island. Combine elements like brick, wood, and metal, add a sleek black counter and exposed ductwork, and you've got an island with an industrial vibe.
  
  
• Add Task Lighting
  You'll need to have appropriate lighting to brighten up your kitchen island, and the fixtures you choose can also add another layer of interest to the space. Options include everything from small pendants to statement shades, but in addition to the lighting's appearance, also think about how you'll be using your island. If you are doing lots of food prep, you may need bright task lighting. Or, if you'd like a softer look, pendant lighting offers extra light and some elegance.
  
  
• Consider a Moveable Island
  A kitchen island doesn't necessarily need to be a fixed, immobile feature. A moveable freestanding island gives you lots of versatility. You can use it to prepare meals, and then if you're entertaining in the evening, push it aside to make more room.
  
  
• Install an Extra Sink
  Having a second sink in your kitchen will require extra plumbing, but for many people, this is a game-changer that's worth the extra cost. You'll need to have enough room on your island, plus additional space to the sides, but you'll have an extra area to clean dishes, wash your hands after prep work, and wash veggies and other foods.

Contact us if you're looking to buy a home and would like to see Spokane homes for sale. Our agents have years of experience and are ready to help you find your new home. 

The last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% of respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

If you're a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

1. A possible desire to relocate
2. The difference in the cost of a renovation versus a purchase
3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

In either case, you'll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

Home Equity Is Skyrocketing

The record-setting increases in home prices over the last two years dramatically improved homeowners' equity. Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

"Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high."

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

If you decide to renovate, you'll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you'll still need to mortgage the remaining difference between the down payment and the cost of your next home.

Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you'll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you're one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you're one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you're ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you'll need two things:

1. The current mortgage balance on your home
2. The current value of your home

You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

Bottom Line

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home. Contact us today to help guide you through the process and help determine what makes the most sense for you!

From the March 2021 issue of @Home with Coldwell Banker Tomlinson.  Written by Chris Canning, Coldwell Banker Tomlinson Realtor®

As both a licensed REALTOR® and home builder, I often scroll through my Facebook feed and see homes advertised by our area homebuilders and fellow real estate agents. I often see such remarks as: "They want how much for that house? They're crazy!" or "Why can't builders build more affordable homes?" The general public is not aware of the obstacles faced by members of the industry tasked with meeting the demand for housing. Chief among these obstacles are: 1. A lack of affordable land. 2. Dramatic increases in the cost of materials. 3. The scarcity of qualified tradespeople.

1. Land

   The first line item on any builder's ledger is lot cost. At present, Spokane is faced with issues in obtaining, developing, and delivering reasonably priced lots to builders. Briefly stated, Spokane's Comprehensive Plan dictates when, where, and how development and construction can take place. Its purpose is to prioritize use of existing infrastructure and improvements before venturing into areas that would require expanding infrastructure. Unfortunately, the land within the boundaries of our "Comp Plan" that was easiest and most cost-effective to develop is gone, leaving only very complicated, expensive, steep, rocky, pieces of property to develop. Consequently, developers and builders are forced to confront more expensive and complicated properties and projects. Many consumers who are able are paying these increases, while others have simply been forced out of the market. Let's assume a builder can build a home for $200.00/sq/ft and obtain a fair profit. If the builder is able to obtain a building lot for $60,000, and builds a 1,500 sq/ft rancher – he would need to charge $360,000 for this home. If, due to scarcity, the cost of the lot rises to $80,000, the result is an increase in the finished cost of the home of about $22,000. Otherwise, the builder sees his/her margin of profit slip, which would make it more difficult to obtain financing. Ultimately, the consumer bears the brunt of the cost increase, while the only party to benefit is the original landowner.
    

2. Materials

   You may have heard in the news recently that lumber prices have nearly doubled in our area and elsewhere across the nation. However, it's not just lumber that has seen extensive price increases due to scarcity. Across the board (no pun intended), shortages in roofing, wiring, flooring and other materials, have significantly increased the cost of building a new home today.
    

3. Skilled Labor

   Ask any home builder in town why homes are costing more, and be prepared for a lecture on the shortage of labor in the building trades. As a millennial, I was pushed hard to pursue a career requiring a college degree. I wish I had known then how much demand Spokane would have for skilled labor in the building trades in 2021! Talking to the many friends and family I have working as skilled tradespeople, I find that every one of them is inundated with work, to the extent that they can choose whom they work for and what they should be paid. As a result, while today's new homes are not framed any straighter or plumbed more reliably than those built five years ago, they are a lot more expensive to build, and, thus, to buy.
   
   

Lurking behind every one of these factors in the increasing cost of new homes is the Demon of Demand. As long as Spokane remains the wonderful place to live it is and always has been, we can expect to see increases in the cost of housing, though perhaps less steep than we are coping with now, extending into the future.

Many people call the kitchen the heart of the home, and it's easy to see why. It's used by multiple family members throughout the day and becomes a gathering spot for family and friends. And as people spend more time at home, this year is the perfect time to make your kitchen more appealing to yourself and your family as well as to prospective buyers if you're selling your home.

If your kitchen is outdated, an upgrade can improve its appearance and make it easier for you to complete your food preparation tasks. Our real estate agents suggest the following ways to upgrade your kitchen this year:

• Appliances that feature germ-control  
  Several manufacturers – including LG Electronics and Whirlpool – are set to roll out products that remove germs and allergens. LG, for example, has a refrigerator that uses ultraviolet lights to sterilize. And Beko Electrical Appliances Co. has a fridge that has a disinfection drawer.
  
  
• Lower-maintenance faucets, fixtures, and more 
  COVID-19 has also made homeowners prioritize cleanable kitchen finishes, and in some cases, microbial. Look for coated finishes like smudge-resistant stainless steel and countertops that are non-porous and stain-resistant. In some cases, countertops and other frequently touched surfaces can be antimicrobial.
  
  
• Large kitchen islands   
  With more people staying at home, having room to prep for a meal is more important than ever. That's why homeowners want to add a kitchen island or improve the one they already have. If you choose to upgrade your kitchen with an island, make sure it features storage in the form of shelving, cabinets, or pull-out drawers.
  
  
• Updated hardware  
  You probably don't pay much attention to your kitchen hardware. But if your knobs, pulls, and faucets are outdated, you can easily – and inexpensively – replace them to have a big effect on your kitchen's appearance. New hardware can give your kitchen a more modern, attractive look that creates an instant update.
  
  
• A fresh paint job   
  Painting your kitchen yourself or paying someone to do the job can make your kitchen look newer as it provides an instant refresh. Especially if you don't have much natural light in the room, using a lighter or brighter color can instantly give your kitchen a boost. If you're selling your home, it's best to stick to a relatively neutral color.
  
  
• Upgraded cabinets  
  Cabinets are workhorses in the kitchen, so if something about them has left you less-than-satisfied in their appearance or performance, now's the time to upgrade. Your cabinets don't need to be completely redone to achieve these results – often, a refreshed paint job will be enough to improve their appearance. You can also fix issues such as squeaky doors, chipped paint, and loose handles to help restore your kitchen into a point of pride.
  
  
• New backsplash   
  Installing a new backsplash is a relatively simple and inexpensive task that can have a big impact. Metal tiles, glass, and other materials can be used to make your home's backsplash look sleek and attractive.
  
  
• Modernized lighting   
  Many kitchens have outdated lighting, which negatively impacts the entire appearance and functionality. Choosing upgrades such as pendant lights or interior cabinet lighting can instantly make your kitchen brighter and focus light exactly where you need it.

Contact us if you're interested in listing your home among Spokane homes for sale. Our experienced, knowledgeable agents can suggest upgrades that will make your kitchen and home more attractive to prospective buyers while providing a good return on your investment.

When revamping your kitchen, you might be tempted to go with the most recent design or that trendy color of the year. Just because it's trending doesn't mean you should go for it.

We can tell you that kitchen design trends come and go, but certain classic looks have stood the test of time. These designs are simple, beautiful, and appeal to a wide audience. And because the kitchen is one of the most expensive areas to renovate, it's smart to stick with what's tried and true. Here are the top 7 timeless kitchen trends that have been loved for decades.

1. Neutral Paint Colors
   The classic white-on-white kitchen will never go out of style. And while it's sometimes critiqued for being boring, it provides a sophisticated look, can blend into any style, and appeals to the masses. You can easily swap out accessories to get that kiss of color. Also, a neutral-color kitchen creates the illusion of space. It can be a blank canvas for your creativity and for buyers interested in buying your home.
   
   
2. Subway Tile
   Subway tiling is one of the most popular kitchen trends, and for a good reason. It's easy to install, it's relatively inexpensive, and has stood the test of time. It has a pleasant pattern and can be arranged in so many ways to get a custom look that complements your personality. It can work with many different décor styles without competing for visual attention.
   
   
3. Single-Level Island
   A single-level island provides a clean, classic, and seamless look. It's a practical feature that allows you to prep meals, help kids with the homework, eat breakfast and gather with loved ones. When keeping an open layout, a kitchen island serves as a focal point and allows light to stream through the space. 
   
   
4. Shaker-Style Cabinets
   Trends among cabinet fronts are always changing, but Shaker cabinetry is a trend that has been around for more than 100 years. With recessed panel doors, Shaker cabinets are known for their functionality, durability, and a simple, clean, and timeless look. This style works well with both farmhouse and modern designs. 
   
   
5. Quartz Countertops
   Quartz-surfacing countertops will continue to be a popular option for a long time. Made by mixing crushed quartz stone with resin, quartz is one of the strongest countertop materials. It is resistant to burns, chips, and scratches and doesn't stain from acidic substances. It offers a timeless appeal and requires less upkeep than many other countertop materials. 
   
   
6. Deep Sink
   A deep and wide sink is just plain practical and a clean kitchen's best bet. Deep sinks contain splashes and properly accommodate large pans, pots, and other items that require hand washing. A large, deep sink can also be a statement when it comes to décor. Choose a sink with a metallic, marble, or porcelain finish and pair it with a stylish faucet. 
   
   
7. Hardwood Floors
   The classic hardwood floor never goes out of style. It lends warmth and natural beauty that can make a kitchen feel more inviting, cozy, and comfortable. Hardwood adapts to any style and can stand up to spills and stains. If you have hardwood floors in other parts of your home, putting them in your kitchen can help create a seamless look by pulling together your interior design. While hardwood floors last for years, you can stain, refinish, or paint your floor to get a fresh new look.

Design a kitchen that buyers looking for Spokane homes for sale will love no matter the decade. Reach out today for more information.