Everett & Soule
Interiors
Born-Again Houses
Residential designer Bobby Morales is known for his work on high-profile showhomes such as Baldwin Park’s InSync House, built in conjunction with the International Builders Show held recently in Orlando. So it’s natural to assume that Morales lives in a grand showstopper himself.
He doesn’t. Instead Morales lives with his family in “just one of those old Florida houses” that he describes as being on the “wrong side of the tracks” in Winter Park.
Certainly, Morales could have built something grand and new. But he chose instead to buy (and renovate) a home in an established neighborhood on a more generous lot. “We cleaned it up and made it a little more elegant,” he says.
He’s being modest. In fact, over the past six years Morales has closed off a formal living area to create a library and future media center. He has relocated the kitchen and combined it with the dining room. And he has designed two gardens, one with a tropical theme and one with an Italian theme.
And that’s not all. The foyer was expanded and remodeled to resemble a European courtyard, with a tiled staircase and a ceiling painted to look like the sky. Now, Morales says, “We’d rather stay home than go out.”
Many Central Florida homeowners are making the same choice that Morales did: to remodel rather than buy another home.
“Remodeling has continued to increase every year,” says Morales of Morales-Keesee Design Associates in Apopka. “It’s because homeowners want to stay where they are. It’s a better value.”
In 2006, remodeling activity dipped during the second quarter but rebounded soon after, according to the National Association of Home Builders’ Remodeling Market Index. Indeed, even as the housing market has slowed across the nation, the remodeling market has kept humming along thanks to owners who have tapped into their equity to renovate.
Nationally, the numbers tell a compelling story. Americans spent a staggering $215 billion on home remodeling in 2005 and an estimated $233 billion in 2006, according to Gopal Ahluwalia, NAHB’s vice president for research. Kitchen and bathroom projects alone accounted for some $10 billion last year, Ahluwalia says.
“I think the industry will remain strong because everything in the house has a certain life,” Ahluwalia adds. “People will even replace or update kitchen cabinets that are still functional.”
And remodeling isn’t as cyclical as new-home building, according to Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies at the Harvard School of Housing.
“Remodeling is fairly predictable as far as maintaining the home is concerned,” Baker says. “The upscale stuff tends to vary, but the replacement remodeling and repair work seems to go on at a steady pace.”
Plus, although amenity-rich master-planned communities are more popular than ever, some buyers simply cherish the funky character of older homes and the perceived stability of established neighborhoods. However, they don’t want to sacrifice new-home comforts and technologies.
The remodeling trend is particularly popular in Central Florida, where rising property taxes and skyrocketing values have made it difficult for many would-be buyers to afford a new home. Plus, rapid appreciation combined with low interest rates have made it easier for owners to take out home-improvement loans.
“There continues to be a strong market for remodeling in the Orlando area,” says Stephen Gidus of PSG Construction in Winter Park.
“Some people don’t want to leave their neighborhoods and others can’t afford the increase in property taxes that will come with a new home.” Whatever the reason, Central Floridians are increasingly investing in their existing homes. But if you’re planning to remodel, experts say, don’t expect the kind of return on your investment that you might have enjoyed a year or so ago.
Prices for most remodeling projects are increasing while the amount of money you may recoup is slipping, according to Remodeling Magazine’s 2006 Cost vs. Value Report.
Still, according to the publication’s study, you’ll recoup about 86 percent on bath and kitchen remodels; 90.2 percent on attic bedroom remodels (taking attic space and turning it into a bedroom or bonus space); and 92.7 percent on installing fiber cement siding. New windows are also a solid investment, according to experts.
Victor Farina of Farina and Sons recommends replacing windows because doing so can add to a home’s curb appeal while inviting more light into the interior spaces. Plus, the right kind of windows can help cut energy costs.
“Homeowners do ask for energy efficiency,” Farina says. “I tell them you can redo your insulation and add good windows.”
When it comes to roofs, the Cost vs. Value Report suggests an “upscale” replacement will cost about $24,693 and bring a return of about 72.9 percent while a “mid-range” replacement will cost about $14,276 and bring a return of 73.9 percent.
Deck additions aren’t particularly popular projects in Florida, but if you’re considering it, here’s the math: You’ll pay an average of $14,728 and it’ll add about $11,307 to the value of your home. That means you’ll recoup about 76 percent of the cost when you sell.
Locally, many homeowners want to increase curb appeal either through an elevation change or by adding architectural details, Farina says.
In College Park and other areas of Orlando where homes and lots are small, owners are adding second stories to increase square footage. Expect an 83.2 percent return on that project if you pay the national average of $105,297, according to Remodeling Magazine.
Inside, a kitchen remodel likely will be the most expensive project you can tackle—but the return may be in the neighborhood of 80 percent. The easiest and least expensive kitchen fixes include replacing appliances, changing hardware and upgrading lighting. If you install new cabinets and flooring and move plumbing and electrical, then costs begin to mount, says Rick Caccavello, owner of Central Kitchen and Bath in Winter Park.
Caccavello adds that every kitchen redo should begin with a budget. But, because every home is different, it’s impossible to determine exactly what you’ll be able to accomplish for, say, $50,000.
For example, an owner who wants to gut an existing kitchen and reconfigure the floorplan will need to spend less on cabinets to stay within the budget. Another owner with the same amount to spend may simply want to reface existing cabinets. In that case, there’ll be extra money for pricier appliances or decorative tile.
Homeowners also love to update their master suites. “Kitchens and master suites are probably the two more important things,” says Morales, who plans to tackle his master suite this year. “People are willing to pay a premium to buy a home that’s been remodeled, so you should put your money into those two areas.”
A mid-range bathroom remodel costs an average of $12,918 nationally and will be worth about $10,970 if you sell a year later, according to the 2006 report. That means you recoup 85 percent of the cost.
On the other hand, adding a home office returns only 63.4 percent of its cost. That’s because many homeowners don’t want to devote a space entirely to work, experts say. Instead they’ll carve out workspace in another room, such as a kitchen or an unused bedroom, or they’ll create an organized nook in a hallway or a laundry room.
“Home designs have not caught up to technology yet,” says Morales, who created a “recharging center” in his home where family members can drop off cell phones, digital cameras and other equipment near the door to the garage. “We found a cabinet—an English secretary—and converted it. We can drop off everything there. Everyone should have something like that. Before, we were just putting all our stuff on the dining room table.”
Morales says he renovated his home to suit his family’s lifestyle, not to turn a quick profit. But because he may sell someday, he hasn’t ignored resale value when making remodeling decisions.
How much should you spend on your project? A good rule of thumb is to make certain that the improvements won’t increase the value of your home considerably beyond that of other homes in the same neighborhood. Even if you aren’t planning to sell anytime soon, you don’t want to find yourself stuck with the priciest home on the block.
The point is, Morales says, you can turn your current home into something new—and you can do it without busting your budget. Adds Morales: “People don’t have to really spend a lot of money.”
He doesn’t. Instead Morales lives with his family in “just one of those old Florida houses” that he describes as being on the “wrong side of the tracks” in Winter Park.
Certainly, Morales could have built something grand and new. But he chose instead to buy (and renovate) a home in an established neighborhood on a more generous lot. “We cleaned it up and made it a little more elegant,” he says.
He’s being modest. In fact, over the past six years Morales has closed off a formal living area to create a library and future media center. He has relocated the kitchen and combined it with the dining room. And he has designed two gardens, one with a tropical theme and one with an Italian theme.
And that’s not all. The foyer was expanded and remodeled to resemble a European courtyard, with a tiled staircase and a ceiling painted to look like the sky. Now, Morales says, “We’d rather stay home than go out.”
Many Central Florida homeowners are making the same choice that Morales did: to remodel rather than buy another home.
“Remodeling has continued to increase every year,” says Morales of Morales-Keesee Design Associates in Apopka. “It’s because homeowners want to stay where they are. It’s a better value.”
In 2006, remodeling activity dipped during the second quarter but rebounded soon after, according to the National Association of Home Builders’ Remodeling Market Index. Indeed, even as the housing market has slowed across the nation, the remodeling market has kept humming along thanks to owners who have tapped into their equity to renovate.
Nationally, the numbers tell a compelling story. Americans spent a staggering $215 billion on home remodeling in 2005 and an estimated $233 billion in 2006, according to Gopal Ahluwalia, NAHB’s vice president for research. Kitchen and bathroom projects alone accounted for some $10 billion last year, Ahluwalia says.
“I think the industry will remain strong because everything in the house has a certain life,” Ahluwalia adds. “People will even replace or update kitchen cabinets that are still functional.”
And remodeling isn’t as cyclical as new-home building, according to Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies at the Harvard School of Housing.
“Remodeling is fairly predictable as far as maintaining the home is concerned,” Baker says. “The upscale stuff tends to vary, but the replacement remodeling and repair work seems to go on at a steady pace.”
Plus, although amenity-rich master-planned communities are more popular than ever, some buyers simply cherish the funky character of older homes and the perceived stability of established neighborhoods. However, they don’t want to sacrifice new-home comforts and technologies.
The remodeling trend is particularly popular in Central Florida, where rising property taxes and skyrocketing values have made it difficult for many would-be buyers to afford a new home. Plus, rapid appreciation combined with low interest rates have made it easier for owners to take out home-improvement loans.
“There continues to be a strong market for remodeling in the Orlando area,” says Stephen Gidus of PSG Construction in Winter Park.
“Some people don’t want to leave their neighborhoods and others can’t afford the increase in property taxes that will come with a new home.” Whatever the reason, Central Floridians are increasingly investing in their existing homes. But if you’re planning to remodel, experts say, don’t expect the kind of return on your investment that you might have enjoyed a year or so ago.
Prices for most remodeling projects are increasing while the amount of money you may recoup is slipping, according to Remodeling Magazine’s 2006 Cost vs. Value Report.
Still, according to the publication’s study, you’ll recoup about 86 percent on bath and kitchen remodels; 90.2 percent on attic bedroom remodels (taking attic space and turning it into a bedroom or bonus space); and 92.7 percent on installing fiber cement siding. New windows are also a solid investment, according to experts.
Victor Farina of Farina and Sons recommends replacing windows because doing so can add to a home’s curb appeal while inviting more light into the interior spaces. Plus, the right kind of windows can help cut energy costs.
“Homeowners do ask for energy efficiency,” Farina says. “I tell them you can redo your insulation and add good windows.”
When it comes to roofs, the Cost vs. Value Report suggests an “upscale” replacement will cost about $24,693 and bring a return of about 72.9 percent while a “mid-range” replacement will cost about $14,276 and bring a return of 73.9 percent.
Deck additions aren’t particularly popular projects in Florida, but if you’re considering it, here’s the math: You’ll pay an average of $14,728 and it’ll add about $11,307 to the value of your home. That means you’ll recoup about 76 percent of the cost when you sell.
Locally, many homeowners want to increase curb appeal either through an elevation change or by adding architectural details, Farina says.
In College Park and other areas of Orlando where homes and lots are small, owners are adding second stories to increase square footage. Expect an 83.2 percent return on that project if you pay the national average of $105,297, according to Remodeling Magazine.
Inside, a kitchen remodel likely will be the most expensive project you can tackle—but the return may be in the neighborhood of 80 percent. The easiest and least expensive kitchen fixes include replacing appliances, changing hardware and upgrading lighting. If you install new cabinets and flooring and move plumbing and electrical, then costs begin to mount, says Rick Caccavello, owner of Central Kitchen and Bath in Winter Park.
Caccavello adds that every kitchen redo should begin with a budget. But, because every home is different, it’s impossible to determine exactly what you’ll be able to accomplish for, say, $50,000.
For example, an owner who wants to gut an existing kitchen and reconfigure the floorplan will need to spend less on cabinets to stay within the budget. Another owner with the same amount to spend may simply want to reface existing cabinets. In that case, there’ll be extra money for pricier appliances or decorative tile.
Homeowners also love to update their master suites. “Kitchens and master suites are probably the two more important things,” says Morales, who plans to tackle his master suite this year. “People are willing to pay a premium to buy a home that’s been remodeled, so you should put your money into those two areas.”
A mid-range bathroom remodel costs an average of $12,918 nationally and will be worth about $10,970 if you sell a year later, according to the 2006 report. That means you recoup 85 percent of the cost.
On the other hand, adding a home office returns only 63.4 percent of its cost. That’s because many homeowners don’t want to devote a space entirely to work, experts say. Instead they’ll carve out workspace in another room, such as a kitchen or an unused bedroom, or they’ll create an organized nook in a hallway or a laundry room.
“Home designs have not caught up to technology yet,” says Morales, who created a “recharging center” in his home where family members can drop off cell phones, digital cameras and other equipment near the door to the garage. “We found a cabinet—an English secretary—and converted it. We can drop off everything there. Everyone should have something like that. Before, we were just putting all our stuff on the dining room table.”
Morales says he renovated his home to suit his family’s lifestyle, not to turn a quick profit. But because he may sell someday, he hasn’t ignored resale value when making remodeling decisions.
How much should you spend on your project? A good rule of thumb is to make certain that the improvements won’t increase the value of your home considerably beyond that of other homes in the same neighborhood. Even if you aren’t planning to sell anytime soon, you don’t want to find yourself stuck with the priciest home on the block.
The point is, Morales says, you can turn your current home into something new—and you can do it without busting your budget. Adds Morales: “People don’t have to really spend a lot of money.”