Sensible Remodels for a Flat Housing Market

Market Watch

With housing values in the tank and any substantial price appreciation in the distant future, sinking money into a remodeling project is a tough sell for many homeowners now.

In general, you won't recoup as much of a project's cost at resale as you might have several years ago, according to estimates from Remodeling Magazine's Cost vs. Value Report, which weighs the costs of various improvements against their resale value. And while labor costs might be more negotiable in today's market, materials aren't getting any cheaper, said Sal Alfano, editorial director of the magazine.

"Homeowners right now are a little shell-shocked. Houses, up to three years ago, were like a bank account... people were spending money freely on sunrooms and outdoor decks and they were always getting it back," said David Lupberger, home improvement expert for ServiceMagic.com, a Web site that connects homeowners with prescreened home service professionals.

Those who are remodeling are generally opting for fewer frills and less expensive finishes, Alfano said. Instead of building large additions, they're trying to better utilize space they already have. They're seeking energy-efficiency upgrades and low-cost cosmetic improvements that make a home more comfortable and appealing.

Added Alfano: "Instead of saying 'Yes, I want the best of everything,' they're making choices right now. They realize they have to make a decision on materials they want to use for counters and backsplashes and ironing centers. Their budget can't cover the best of everything.

"People are back to tradeoffs, projects are smaller."

The little things

Even if resale isn't your top consideration, a check of the Cost vs. Value Report will still give an idea of projects that pack a punch. Home improvements that tend to excel on this list are those that have universal appeal -- and a reasonable price tag.

In terms of cost recouped at resale, seven of the top 10 projects in the 2009-2010 report were exterior-replacement projects, including windows, doors and siding.

A steel exterior door-replacement was the highest-ranked project on the list. It was also the least expensive, Alfano said. For an estimated cost of $1,172, real-estate agents who were surveyed for the report estimated that 128.9% would be recovered at resale. View the Cost vs. Value Report.

"If you have a door that really needs help, you're not spending that much money and you're vastly improving the first impression" of a home, he said.

Painting, replacing older fixtures, and cleaning carpets also are inexpensive ways to spruce up a home without hiring a large home remodeling company -- whether you're planning on selling it soon or not, Lupberger said. "There are a lot of cosmetic things we postpone because of how busy we are," he said.

For budget-conscious homeowners, changing door handles and putting a new finish on interior doors can also make a huge difference, said David Mackowski, of Quality Design and Construction in Raleigh real estate, N.C.

Remember, too, that improvements that make a home more efficient can cut down on utility bills, saving money over the long term. Some products that improve efficiency are eligible for federal tax credits through the end of 2010, and certain appliances qualify for state rebate programs as well.

Citing Costs, Contractors Fight New Lead Paint Rules

Milwaukee-Wisconsin Journal Sentinel

 

Green will mean something a little different this Earth Day - at least for contractors required to follow stricter practices for controlling lead paint when doing even minor projects in homes built before 1978, under a new rule that takes effect on April 22.

Trades groups around the country have sought to block the scheduled implementation of the Environmental Protection Agency rule, arguing it will increase the price of renovations by thousands of dollars and cost them work. They predict homeowners will either forgo renovation projects because of the higher costs or find workers willing to ignore the rules and risk fines.

To date, the EPA has maintained the rule will go into effect on Thursday.

If that holds, homeowners should be prepared to pay more for window replacements, kitchen remodeling, siding jobs and small plumbing and electrical projects - any work where lead paint would be disturbed. Owners of apartment buildings also will pay more for similar work, and property managers will need to comply with the new requirements.

"Nobody is very happy for a more restrictive policy, and I don't like to have to charge my customers more," said Kevin Anundson, owner of the OAR Group in Elm Grove. "It could make or break a project. It shouldn't, but it could. We have to conform.

"We have to follow the policy," he said.

Anundson serves as first vice president of the National Association of the Remodeling Industry, Milwaukee Chapter, which has been working to help its members comply with the new lead-safe standard.

The rule applies only to buildings that pre-date 1978, when lead paint was banned for residential use. One estimate puts the number of buildings covered by the new rule in Wisconsin at 756,000, including day-care centers and schools.
 

Bathroom renovation work, particularly the demolition portion in those older buildings, disturbs old paint and releases dust containing lead. The toxin poisons roughly 1 million children per year across the country, and the rule is intended to reduce the exposure to poisonous dust.

All interior projects that disturb an area of six square feet or greater fall under the rule. The threshold for outdoor projects is 20 square feet. Any window replacement is covered by the clean work site requirements.

The new standard does not apply to homeowners doing their own work.

In Wisconsin, the Department of Health Services implemented its own version of the federal rule and has been overwhelmed by contractors seeking to meet the new training and certification standards by the looming deadline.

That rush, however, follows two decades of legislative and regulatory work to eliminate lead paint poisoning in children. Congress authorized the EPA to draft the rule 20 years ago, and the EPA published the order in 2008.

The new standard requires:

•  At least one worker on a project must be certified as a "lead safe renovator." Certification requires a one-day training course, typically costing $250, and a $50 fee paid to the state every two years.

•  Businesses performing home repairs and renovations also need to be certified. In Wisconsin, the certification costs $75 and is good for five years.

•  On-site, workers will be required to upgrade their practices to protect against the spread of lead dust. They will have to post warning signs, use respirators, goggles and disposable plastic drop cloths, and clean the area with HEPA vacuums and wet washing. The area must be checked with special cloths to ensure the lead dust left behind is below the threshold set in the rule. Power tools also will need to be outfitted with special shrouds.

The vacuums with high-efficiency particulate air filters cost roughly $500 each.

The EPA has calculated the stricter practices, which include additional record-keeping, will add an average of $35 to the cost of a renovation project, and has set the range at $8 to $167.

Some home remodeling contractors scoff at those figures. Others merely question them.

"Now the requirement is to leave the area in a dust-free environment on a daily basis," said David Pekel, owner of Pekel Construction and Remodeling. "To that end, putting a price tag on the financial implication per job is going to be hard to get our hands around initially."

John Brannon, owner of Exact Exterior and Interior Remodeling, in Greendale, has a more abrasive view of the new standard.

"You took an industry that was down because of the economy, and now let's make it even tougher yet," he said. "These had to be the dumbest people collectively on God's green earth that put this rule together."

Brannon called the rule a huge tax increase on homeowners, and estimated the need for extra equipment, cloths, masks and barriers would add $1,000 to $1,500 to a bathroom or kitchen remodeling.

Counter to what Brannon suggests, however, the rule does have a purpose.

Lead poisons 1 million children per year across the country, according to the EPA. Household dust containing lead from old paint is believed to be the most common source of the poison. Children easily ingest the dust when putting their hands and fingers in their mouths.

The heavy metal is particularly harmful to children under 6, decreasing intelligence and hindering the ability to learn. Research has found that the poison also impairs academic performance and contributes to increased rates of juvenile delinquency.

In the early '90s, Congress passed the National Toxic Substances Control Act - the legislative basis for the new rule - with the intent of eliminating lead poisoning by 2010.

The number of children age 6 and under found to be poisoned by lead in Milwaukee has decreased from 3,456 in 1997 to 815 in 2008, according to the City of Milwaukee Health Department.

That reduction, however, is not a cause to claim victory, said Paul Biedrzycki, director of disease control and environmental health with the city department.

"Now, it's time to fine-tune and refine our strategy," he said. "There's still a lot of lead paint in Milwaukee, particularly because of the older housing stock - primarily lower-income and rental housing.

"I think this standard will improve our ability to further reduce lead levels in children."

The effort has been hampered somewhat by a shortage of training opportunities, and the slow response by the contractors and businesses required to follow the new rule.

In Wisconsin, roughly 20,000 to 30,000 individuals - plumbers, painters, carpenters and others - are estimated to require the training and certification, according to Shelley Bruce, manager of the safe-lead program in the state Department of Health Services.

Through Friday, 1,024 certifications had been issued. Another 2,000 applications are being processed, she said.

There are six certified training providers for Wisconsin workers, and the classes have been filled to capacity for the last several months. Across the country, a lack of accredited courses has been a problem for contractors looking to comply with the new rule.

Bruce estimated compliance of only 8% to 10% in the first year in Wisconsin. She expects that to increase to 50% in five years and 70% by 2020.

Violations carry penalties up to $1,000, but Bruce said the initial enforcement would focus on helping contractors meet the new rules. Fines wouldn't be levied unless the violators continued to ignore the rule, she said.

Sustainability a Major Theme at Kitchen Show

Medill Reports Chicago

 

 

Innovation, sustainability and high-end amenities were themes of the 2010 Kitchen and Bath Industry Show at McCormick Place Convention Center in Chicago April 16-18. Nearly 700 vendors hawking leading industry brands Dacor, Kohler, GE, Moen and many others presented the latest in kitchen and bathroom trends.

Debuting the latest trends in sophisticated, contemporary designs for the home, exhibitors displayed affordable luxuries as well as products that might be out of reach for the average consumer.

“Consumers are more conscious of where their money goes now,” said Bob Quasius, head of exhibits and displays for Kohler Co. “They come looking for high quality but value as well.”

Cast iron baths with chromatherapy and bubble technology, tankless toilets, etched bronze sinks, undercounter refrigeration units, electric cabinets, water-saving rain shower heads, ironing centers, and mirrors with built in televisions were some of the eye-catching items on display.

Though official attendance figures won’t be available until next week, Wagstaff Worldwide, Inc., public relations for the show, projected a 40 percent increase compared with last year’s show in Atlanta. Brian Pagel, vice president of Kitchen and Bath Group at Nielsen Expositions, the show’s production company, said there was a positive buzz on the show floor.

“We believe that this is a sign that the market has begun to stabilize and hope that it is an indication that market conditions will continue to improve,” Pagel said.

The jump in attendance might be due to more movement towards sustainability in renovation as the economy begins to recover from the recession, according to Sarah Barnard of Sarah Barnard Design, a Los Angeles firm specializing in eco-friendly design.

“In years past, we really had to promote these ideas to the clients and beg them to get on board,” Barnard said. “Now everyone is asking for them.”

Barnard said she is seeing a lot of what she calls “piecemeal” home improvements now, rather than “whole house attacks,” mainly from people who have been in their homes for some time and are finally ready to invest in renovations.

“Frankly, they’re tired of not spending and not having,” Barnard said.

For average consumers, the goal is to buy the best they can afford in a remodeling project, and that creates “a lot of pressure to make the right choice,” according to Barnard.

Although homeowners can sometimes get caught up in that, it’s important to be realistic when making a plan to remodel, she said. Barnard advises consumers to look to shows like this one more for inspiration, and not necessarily splurging on the high-end luxury items displayed. She gave the example of a high-tech toilet with buttons, a heated seat and motion-sensing lid that lifts automatically when someone enters.

“On the show room floor with a smooth-talking salesman, it seems like something that your dream bathroom can’t live without,” Barnard said. “But really, it’s a toilet. You have to keep it in perspective.”

The average household in the Midwest spends about $10,600 on kitchen appliances and bath remodeling jobs, according to a 2009 research report issued by the show's sponsor. However, the Midwest lags behind other regions including the West, where average spending per household tops $18,000.

The same research found that just over 6 percent of households in the region are planning a kitchen and bathroom remodeling job this year, ranking second only to the Northeast with about 8 percent planning remodels.

“Financing is just not as readily available for new construction, so most people are just upgrading the homes they have,” said Keresa Richardson, national president of Benjamin Franklin Plumbing.

Typically, homeowners can expect their home value to rise by 80 percent to 90 percent of the amount they spend to remodeling a kitchen or bathroom, according to Richardson.

“Most people want to know, is it worth the money to remodel my home? And most of the time, it is,” Richardson said.

She went on to say that it's also worthwhile to invest in energy-saving products for the home because they bring a lot of value that people want, including savings on energy and water bills.

Next year’s Kitchen and Bath Industry show will be held in Las Vegas April 26-28. The show was held in Chicago in 2006, 2008 and 2010 and Atlanta in 2009. It was at the Las Vegas Convention Center in 2005 and 2007.

Business Booming at Habitat ReStores

Tidewater News (Virginia)

 

Organizers with Southampton/Franklin Habitat for Humanity didn’t quite know what to expect when they opened the ReStore in downtown Franklin last September.

“We have had an overwhelming response in the donations from the community and also the customers,” said Shanda Bittick, a member of the executive board and chairwoman of the Restore Committee. “It’s really exceeded our expectations.”

The ReStore supplies overstocked, discontinued, and new and used building materials donated by manufacturers, stores, Pennsylvania remodeling contractors and individuals. The store started with an International Paper Co. grant and donations from Wal-Mart and Lowe’s.

The ReStore features furniture, electronics, appliances, fixtures, kitchenware, books and most things related to homes.

“We don’t do clothing or used mattresses,” said Jean Stephenson, another member of Habitat for Humanity’s executive board and chairwoman of the Family Selection Committee.

The donated items are either sold to the public from the ReStore at 109 W. First Ave., or used in construction for Habitat for Humanity homes.

Donations from businesses or individuals are tax-deductible. ReStores are located across the country, but Bittick said other stores often struggle to get donations; that hasn’t been a problem here.

“They have just been coming and coming and coming,” she said. “I think that this store just shows the spirit of Franklin in general.

Stephenson said it’s a great place to find bargains. New items are typically sold at about 50 percent of retail value and used items can be priced anywhere from 50 to 90 percent of retail value.

“I work for social services and I see it as a place where my clients can come and get very nice things for home remodeling at very affordable prices,” Stephenson said. “To me it helps everybody in the community.”

Bittick said the store is a “win-win” for everyone. Not everyone shopping the ReStore is just looking for bargains. Bittick said some people come in looking for interesting or unusual items to decorate their homes.

Frank Rickman, the store’s manager and only paid employee, said volunteers are the backbone of the store.

“I’ve worked for a lot of different charitable organizations, and I’ve never seen volunteers like the ones here,” he said.

Rickman said he was preparing to retire from his job at International Paper Co. and wanted to do something to help the community.

“What could be better than helping a family have a home?” he said.

Organizers said volunteering at the store is “addictive” and volunteers come from a wide variety of backgrounds including teenagers with the Southampton High School Key Club to senior citizens.

“It’s just an interesting eclectic group,” Bittick said of the volunteers.

Habitat officials are looking to expand the store’s hours. Currently it is open 9 a.m. to 1 p.m. Saturdays and Wednesdays. On June 1, those hours will expand to 9 a.m. to 3 p.m. By the fall, they hope to add a third day of operation.

“We want to go to the next level of opening more hours and to do that we need to expand our volunteer base,” Bittick said.

Organizers are targeting civic and church groups looking for a place to volunteer.

The Southampton/Franklin Habitat for Humanity is preparing to build another house, “and this store has a lot to do with the funding of that,” Bittick said.

Stephenson said the home would be built on South High Street in Franklin. The home will have an interest-free mortgage, and the buyer is required to put in 300 hours of “sweat equity.”

“Our hope was to be able to find that partner family so we can go ahead and start this summer,” she said.

Rickman said working at the store is a good way to help the community as the International Paper mill shuts down.

“I don’t want to see Franklin go down because the mill is going down, and this is an opportunity to help not just Franklin, but Southampton and Isle of Wight…this whole area,” he said.

Organizers are also planning to hold a community yard sale at the store on July 24.

Ideal for Meditation

San Francisco Chronicle

Twice a week, The Chronicle features a local home on the market that caught our eye for its architecture, history or character.

Address: 177 W. Blithedale Ave., Mill Valley

Asking price: $1.895 million

Description: Located a half-mile from downtown Mill Valley, this renovated home in Blithedale Canyon sits on a level lot with numerous redwood trees growing in the landscaped backyard. An open kitchen features a center island and built-in table, as well as Sub Zero, Fisher & Paykel and Bosch kitchen appliances. Four sets of French doors provide access to the deck and rear yard from the kitchen and family room, as well as the master bedroom and an additional bedroom. The home also has three skylights, an office and a spacious laundry with ironing center, storage and mechanical room.

Don't miss: A meandering path in the backyard leads to a detached "Zen Tea House" perched beneath the redwoods.

Size: The four-bedroom, 2.5-bath house sits on a 5,600-square-foot lot.

Built: 1924