Q. I am in the early stages of remodeling my kitchen. One major decision is replacing my range. I’ve fallen in love with the Viking range’s appearance and professionalism. We are serious cooks but not enough to “warrant” the need for such an instrument. It’s in the $10,000 range. I thought that possibly my home value would be increased with such an addition. Maybe you could give me an excuse to make the purchase.
James Guzniczak
A. Unfortunately, there is no way to justify an expensive range as a way to increase your home’s value, said Bill Ryerson, a Realtor with Lake View Realty in Chicago. Appliances are considered personal property and are not included in the value of the real estate when it is appraised. “Buyers usually expect to have a stove included in the price of the home but they don’t expect a $10,000 one,” he said. “This is a classic example of `over-improvement,’ which would net the seller much less than it costs him.”
The fact is that almost no home improvements add more value than their costs. “Kitchens are one of the best places to rehab, but studies consistently show that owners get back at most about 90 percent what they spend,” Ryerson said.
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Here’s a possibility: Buy your premium oven and if you move, you can take it with you. You can give the buyer a credit at closing to buy a new, more modest oven of their own choosing.
Q. I’m thinking of remodeling the kitchen in my two-bedroom condo. I recently started a project to create a breakfast nook and cut out a section of the wall. How much added value can I expect?
James Albrecht, Naperville
A. An owner is likely to get top dollar for his condo if it is in good condition compared to other similar sized condos in the area, said David Steiger, of Eagle Appraisal of Crystal Lake. For all residential real estate sales, remember “condition is everything in an appraisal,” Steiger said. Plus, “kitchens and bathrooms are big deals” for the buyer.”
But Steiger warned: “Just don’t over-improve. We can’t make a big adjustment [in price] for an overly improved kitchen. If you want top dollar, you needn’t be over the top (on amenities or home features). You just need to have it in good condition.”
Lots of extraordinary features won’t translate into a condo value that exceeds the maximum range of values for similar area properties. The value is established by the recent sales prices of similar condos, Steiger said.
The value will “conform to what the market is expecting in the area,” he said.
Condo owners who over-improve their property should not expect to recoup the value of those extras. But the owner of a single-family home can expect to get a slightly higher sales price for amenities such as marble floors or whirlpools, he said.