In my last post I broke that bad news that in this market you don’t get 100% back on your home improvement. Further, expectations that you will make a profit are hardly ever realized. But there is good news in some cases and today’s post will illuminate a few of them.

Two is Better Than One

The most obvious case is the second bath. If you own a home with more than one bedroom and only one bath you will benefit from adding a half-bath (commode and sink) or a full bath (this can be commode/sink/shower if you have space limitations).

There is a very desirable community that I work in where I realized this fundamental value. Two similar houses situated in similar environs sold within two weeks of each other. The one bath home sold for $18,000 less than the two bath home. That is about a 6% difference.

I have clients who are incredulous about this improvement. “When you have two bedrooms, why do you need two baths,” they ask. The answer is two-fold. You will be glad you have that 2nd bath when you entertain but much more significant - the people who are in today’s market (and tomorrow’s market) expect to have more than one bath. Given the option they will spend 4-6% more for a second bath, slightly less for an additional half-bath.

Scaling Back

The numbers are less concrete for adaptations to small cottages and capes. In  homes that have small rooms that are not easily opened up the design and decor of those rooms is critical to perceived value.

The first step to increasing value is downsizing furniture and appliances. Subtle lighting, strong vertical lines, and height of accessories are the easiest and least expensive improvements. Short heavy furniture, stocky tables and bookshelves, oversized entertainment centers, overstuffed couches and chairs are all harmful to the flow of a small home. If you can not part with your furniture then just store it and replace it while your home is on the market.

Now to the construction. Before you begin contacting builders and buying appliances bring in professionals to make recommendations for creating space. Have a kitchen and cabinet store professional create plans for layout and build-out. Talk to painters or paint stores about color tricks to increase perceived space. Most furniture stores have designers who can help you plan for appliances and furniture that are more vertical than horizontal and look like they are still substantial. Open window areas by using  minimal treatments.

So to recap, choose paint, furniture, cabinets, traffic patterns, appliances, accessories, and decor with an eye toward vertical expanse and small footprints.

Building Out

Another remedy for smaller living spaces is the outdoor room or outdoor living space. This works best in more moderate climates but is almost always a welcome addition. Most often outdoor living space is designed on a deck or patio by using traditional interior-design techniques with exterior quality fabrics and furniture. First set your budget. The budget rule is guided by the value of your home and the impact the extra space will have on value. Once you have a budget, it is time to create a concept of what you want the space to look like - will it be an entertainment zone (think grill and bar) or a conversation zone (think circular movement, comfy seating, center feature (fire pit, coffee table, etc.). If you choose you can add propane heaters for extending the season but that step is completely optional. It is critical that you stay within your budget. The more you overspend your budget the less you are likely to recapture the expense by increasing the market value of your home.

Coming Up Next

In the next post I will address kitchens and miscellaneous upgrades. Stay tuned!