Randy Ricciotti of Custom Design & Construction, in Los Angeles, says that his clients want a spa experience in the master bath, with multiple showerheads
and steam. One of the company’s projects reflects a trend seen on both coasts: baths with both a soaking tub and a glass shower enclosure.
Credit: courtesy Custom Design & Construction
Realtors on both coasts say that clients want houses with updated kitchens and baths. “Everyone values an upgrade,” says Realtor Leslie Chaput with Re/Max, in Hartford, Conn. “They think they will be inconvenienced by a remodel. If the kitchen or bath is [already] done [when they buy the house], people feel they have gotten value for their money.”
Judy Anderson, a broker associate at Insight Real Estate, in Sacramento, Calif., says that her clients are making offers on houses that have newer kitchens with granite countertops. She says that because home prices are lower now, buyers prefer to purchase a house that is complete. “In the $300,000 to $400,000 range, they do not want to do anything [to the home] — they want it all [to be already done]. The husband and wife are working, are busy with their family life, and do not want to remodel,” Anderson says. “Only investors are buying fixer-uppers, and they are in a much lower price range.”
In San Francisco, Jeannie Anderson, with Pacific Union Real Estate, says that first-time buyers prefer updated kitchens because the lack the extra money, time, or know-how to take on a big project. In fact, Lois E. Ireland, associate broker with Prudential Verani Realty, in Nashua, N.H., says that she has noticed a shift in homeowners’ repair skills. “I don’t know if it’s because of the technical revolution, but people do not seem to have the know-how or talent to upgrade. They even expect a bank-owned house or foreclosure to have an upgraded kitchen.”
“Seems like everyone wants a home that is in great shape,” agrees Andy Cochran, senior associate at Lang McLaughry Spera, in South Burlington, Vt., who says that his clients, regardless of age, are seeking homes that are ready for immediate occupancy.
The kitchen is the heart of the home, and homeowners prefer open kitchens for social interaction. In this loft project, remodeler Kevin Wallace removed a wall
between the living and dining rooms and the kitchen. The popularity of stainless steel appliances is a continuing trend.
Credit: courtesy Wallace Remodeling
Personal Value
For homeowners who do renovate, remodelers say that most wait until they have been in the house for at least five years before they embark on remodeling projects. Kevin Wallace, president of Wallace Remodeling, in San Francisco, says that his clients remodel based on personal taste and long-term investment not short-term resale. Due to the uncertainty in the market, homeowners are staying in their homes longer than expected, so they want a quality remodel.
In the Sacramento, Calif., area where Chris Lattuada, president of B-Line Construction works, the kitchen and bath market is down a little. “Most of the time people are doing the project because they have the need or desire. They are not trying to raise the value of the house,” he says. “Upper-end clients don’t want to throw money away, but they know what they want and are willing to wait to get the return. If an upscale bath returns 70 cents on the dollar, if the property value goes up 2% to 3% per year, they have value back in seven years.”
Because clients are staying in their homes longer, Wade Freitag, a remodeler in Portland, Ore., has found that clients are more focused on kitchen and bath remodels, which provide his business with steady work. His company, Craftsman Design and Renovation, specializes in preserving the architectural style of homes built from 1900 to 1920 and, he says, his clients are focused on doing the projects correctly. “It’s not always upscale, it’s a more educational mindset. They’ve found that special house and they want to do it right with quality above quantity.” Many of these remodels involve expanding the kitchen and adding a powder room to the main floor.
Almost all of Los Angeles–based Custom Design & Construction’s projects involve a kitchen or bath. Vice president of design, Samantha Thompson, says that although the work is still steady, most clients are more budget-conscious compared with a year ago. Vice president Randy Ricciotti says that clients are interested in projects that will be reflected in the property profile listing. “Here, the real estate market is very sensitive to bed and bath counts. Upgrading from a three-bedroom, two-bath house to a four-bedroom, three-bath — that is where they increase the value of the house, sometimes more than the cost of the remodel,” he says. Even when a room is added specifically for use as a den or office, the designers include a closet so it can be listed as a bedroom.
Increasing square footage is key in the midrange market in his area, says remodeler Jay Riordan. “A room addition still pans out for the MLS listing; it does not adjust that much for a brand new kitchen,” says the president of Dream Design Builders, in San Diego. Realtors often ask Riordan to meet with their clients to provide input on remodeling costs for a new master suite or room addition with a kitchen. “The [homeowners] take those figures into consideration when making an offer,” the remodeler says.