Not Staying Long? Cut Out High End Renovations

Renovators, say hello to Hardy board and goodbye to granite countertops.

According to a new article over on CNNMoney. com, here's what not to do in today's market:

• Buy a home you know you're not going to live in very long.
• Spend oodles of money on high-end updates and renovations.
• Expect to get that money back plus a profit one or two years after you purchase the home.

Yes, a few short years ago you could do all of those things and not only recoup your money, but probably make a profit to boot:

"During the housing boom, updating a kitchen with high end materials like cherry wood cabinets and a Viking stove was a sure bet to boost a home's value. Homeowners often recovered about 80% of the cost when the house was later sold."

That was yesterday.

If you are going to remodel in today's market, and know you won't be staying in your home more than a few years, it might be wise to scale back the scope of your interior projects as well as the type of materials you use.

"...with so much more inventory on the market for buyers to choose from, they [buyers] just aren't as impressed with the bells and whistles. Now most upscale renovations are returning less than 70% of their cost, according to a recent survey from the National Association of Realtors (NAR) and Remodeling magazine."

However, exterior renovations still seem to be paying off:

"...returns for high-end exterior renovations are still holding up, according to the NAR report, with better pay-offs than interior work.
For example, sprucing up a home's look with expensive fiber-cement siding, which looks like wood but is more durable, returns 88% on investment, more than any other renovation NAR evaluated."

Say good-bye to granite countertops - CNNMoney.com

Home Shows, Magazines Adapt to New Market

Looks like homeowners and Realtors aren't the only folks having to do things differently since the market started self-correcting. Networks like Knoxville-based DIY and home magazines like Better Homes & Gardens are changing their content to better fit the times:

"Fix-and-flip shows have given way to programs that focus on living more with less, and home magazines increasingly spotlight segments for budget-minded consumers.

'We put much more emphasis now on projects for a mix of budgets,'says Gayle Butler, editor in chief of Better Homes and Gardens magazine."

But that doesn't mean that business is bad. Knoxville-based HGTV's senior VP of content and development says that his network is doing just fine despite the upheavel in various local real estate markets:

"'Does it mean people stop getting married, having children or getting job transfers across the country? No," he says. "We offer property shows that help people, so our ratings have never been stronger.'"

DIY TV, magazines adjust to changing housing market - chicagotribune.com

Is That Remodel Worth It?

We live in a nifty little tri-level that we bought from the original owner, who, if the wagon wheel light fixtures were any indication, was not very much into the home renovating. Needless to say, we have put in a good bit of sweat equity in the last couple of years, including all new interior paint, new toilets and sinks, new light fixtures, and a 1/2 new kitchen - the other half is awaiting a nice, big closing. So, I was intrigued when I found this quiz on the Sweat Equity website over at diynetwork.com. It's only 10 questions, but the answers are very interesting.

You might also check out the rest of the Sweat Equity site. They have a remodel budget estimator as well as tips on which remodel projects will get you the best return when you sell your home.