Cover Story
Customize Your Dream Home Through Remodeling

Homeowners remodel to work out the kinks that become apparent after living in a home for a few years such as an awkward kitchen layout, an outdated bathroom or wasted attic space. Others remodel to increase the value of a great house in a great location.

Remodeling is more than replacing wallpaper or doorknobs. As the editors of Consumer Reports put it, “Redecorating is inconvenient. Remodeling is disruptive.” Yet, most homeowners would readily admit, the reward of having a completely customized home is worth the short term pain and suffering.
But where do you begin?
First, you should assess the home, the neighborhood and your goals. If your home is one of the more modest offerings in your neighborhood, you can expect a strong return on your remodeling investment if you’re bringing it up to the standard set by the homes around you. A house that lacks features commonly found in comparable homes is likely to linger on the market and may sell below its listing price.
If your house is already on the higher end, you may be remodeling more for your own comfort than for recouping your investment. Beware of “over improvement”—investing more than you’ll ever get out and becoming the most expensive home in the area.

Crunching the Numbers
Harvard’s Joint Center for Housing Studies recently released the report the Foundations for Future Growth in the Remodeling Industry. There were some interesting findings.
Nationally, over the last decade, the U.S. home improvement market nearly doubled in size, reaching a new high of $280 billion in 2005. The report noted that after years of exceptional growth, the remodeling sector has returned to a more sustainable pace. Despite pressures on the new home construction market in many parts of the country, homeowner spending on remodeling is expected to increase 44 percent in inflation-adjusted terms between 2005 and 2015.
“Investments in older homes that missed the last round of home improvements, and the desire for energy efficiency retrofits, will ensure a healthy recovery,” said Nicolas P. Retsinas, director of the Joint Center.

A Market in Transition
The Wall Street Journal recently reported in their article “Where Home Prices Are Hot Now” (May 2007) that “…Charlotte and Raleigh are among the top U.S. cities that appear to be bucking the national depreciation trend. Charlotte area house prices grew 9.09 percent from the fourth quarter of 2005 to the fourth quarter of 2006—the fastest appreciation the area has seen since 1982.”
As homeowners move to the Queen City from all over the country, one thing is certain—a good home in a good neighborhood is probably worth the investment to upgrade, considering the area’s healthy real estate market. Yet in some parts of the country, real estate has not faired so favorably. In general, the recent pause in national home sales means owners are staying in their homes longer. This will change the composition of home improvement spending.
Rising home energy costs also are causing homeowners to put energy efficiency near the top of their remodeling concerns. The good news is, at a national level, the Harvard report notes that “this pause in spending should, however, be relatively brief.”
Not surprisingly, this has caused many homeowners to reconsider some home improvement decisions to ensure their improvements will have a high rate of return. Rather than taking on expensive discretionary projects, homeowners are investing in more routine replacement projects, system upgrades, and mid-range rather than the no holds bar, upscale improvements seen in year’s past.
The top five percent of households spending the most for home improvements accounted for 60.7 percent of all remodeling expenditures in 2004-2005, according to the Harvard Report.
Mid-range versions of projects now pay off better for homeowners than upscale versions in most cases, and replacement projects currently provide a better return on average than discretionary improvements, noted the Harvard Report.
With aggregate home equity at $10.2 trillion in 2005 and almost a trillion dollars outstanding in home equity borrowing, homeowners have the means as well as the motivation to continue to invest in their homes over the coming years.
In 1989, less than half of national home improvement spending was on homes in the South and West. In 2005, the Sunbelt share was up to more than 60 percent. Recent changes in permitting activity reflect this trend. From 2003 to 2005, remodeling permit values increased 38.4 percent in the South and 27.2 percent in the West, compared with 24.9 percent in the Northeast and just 5.1 percent in the Midwest, noted the Harvard Report.

Prospects for Growth
Over the next decade, the remodeling market can expect continued growth. With the long-term shift of population and jobs to cities like Charlotte and other southern cities, spending on home improvements in these regions should thus show healthy growth in the decades ahead.
• Between 2005 and 2015, the number of homeowners will increase by over 12 million and average per household spending will grow by 23 percent.
• By 2015, members of generation X will represent the largest share of homeowner improvement spending of any generation, with 27 percent of all spending. Meanwhile, trailing baby boomers will hold strong at 23.6 percent of spending and lead baby boomers will contribute 21.3 percent of spending.
• Spending in the professional segment will rise by 46 percent over the next decade.
• The top five fastest-growing remodeling markets are in the South and West.

Where to Start
A quick ride through many Charlotte neighborhoods will find no shortage of construction signs and contractors.
But where should you start? What improvement will have the highest return on investment?
With kitchens and baths, a perennial favorite to remodel in Charlotte homes, it’s easy to get carried away with all the material choices. But national data suggests that mid-range projects are the safest and have the highest rates of return.
Part of the fun in a renovation project is getting to choose new cabinets, flooring, or appliances, but try to balance your dream items with the overall scale of the project and the value of the house.
Other areas of home improvement spending that are gaining ground are those in the “green building” category. Aside from being good for the environment, using high efficiency, environmentally friendly products can be good for your wallet, as many sustainable and energy efficient upgrades qualify for federal tax credits and in some cases, local subsidies.

The Big Push Toward Outdoor Spaces
The Wall Street Journal noted recently that fully 50 percent of homeowners polled said they were spending more time at home than they were five years ago, with the majority of the survey respondents saying relaxation and the desire to spend more quality times outdoors were the top reasons to create “outdoor living rooms.”
Yes, the lines between inside the home and the outside are being blurred. In general, older baby boomers are downsizing their homes focusing on quality living spaces over quantity of square footage, making better use of the space they have generally looking to connect the spaces between inside the home and outdoor environments.
Rising energy costs are helping to fuel the outdoor living boom. Whether it’s because of the impending $4 a gallon gas prices and the desire to stay closer home or the fact that outdoor living spaces require no heating and cooling costs, consumers are actively redesigning outdoor spaces and in doing so, adding valuable square footage to a home’s living area.
Consumers looking to really extend their living spaces outdoors are finding a myriad of creature comforts. Patios and decks can now be decorated with year-round furniture, outdoor rugs, propane heaters, lighting and even outdoor appliances. But make sure the appliances are UL rated and if possible, locate the outdoor kitchen in a protected area. The good news is, many homeowners are finding there are few limitations and nearly every appliance in the home has an outdoor counterpart.
Professional landscaping has a similar positive impact on a home. There are few home improvements that will actually increase in value over time, but professionally designed landscaping will.

It’s Your Home Sweet Home
Some renovations you’ve always wanted to undertake may not give the best return on investment, but don’t pass up the features you’ve always wanted if you’ll be living in the house for the foreseeable future. Unless you expect to be selling your home as soon as the renovations are complete, you are right to choose projects that suit you and your family, not a hypothetical buyer. The pleasure of a completed renovation is a reward in itself.
The savvy homeowner will find a balance between renovations that are urgent, those that are desirable, and those that are necessary for improving the value of the home.

What’s In

BATHS
Master suites with sumptuous spa-like bathrooms
Free-standing soaker tubs
Bigger showers with full-body sprays

KITCHENS
Multiple countertop materials
Engineered quartz countertops
Custom cabinetry
Multiple dish washers
More two-cook kitchens with multiple cook areas
Down-drafted cook-tops
Oil-rubbed bronze hinges and hardware

MATERIALS
Green building
Custom interior and exterior doors
High-end, vinyl clad exterior windows
Inlayed hardwood floors
Multiple layered crown molding
Wrought iron handrails for interior staircases
Greater uses of natural stone accents on home exteriors
Concrete fiberboard exterior siding
Engineered building products
Spray-foam insulation
Energy audits
Outdoor kitchens and weather resistant outdoor furniture
Custom closets, pantries and personal organization systems
Full home audio systems and home automation (lights, electronics)
High-end laundry rooms and equipment in multiple locations in the home

What’s Out

Brass hardware and fixtures
Laminate countertops
Steel entry doors
Inexpensive vinyl windows
Vinyl siding
Wall-to-wall carpet
Pressure-treated decks

Resources
Appliances
AGA Thyme 704-335-8555
hhGregg Fine Lines 704-599-4196
Plaza Appliance 704-568-7600

Audio / Home Electronics
Mojo Audio Video 704-309-3281
Intelligent Technologies 704-583-4618

Building Materials & Hardware
Blackhawk Hardware 704-525-2682
Myers Park Hardware 704-334-1613
RCS Charlotte 704-523-8063
Stock Building Supply 704-358-4894

Cabinetry
Cabinetcraft 704-391-9550
Carolina Cabinet Refacing 704-531-9224
Proline Countertops & Cabinets 704-882-7725

Countertops / Ceramic Tile
All Granite 704-489-1023
Crossville Tile and Stone 704-927-8453
Design Innovations 704-598-1255
Granite Transformation 704-941-7644
Harkey Tile & Stone 704-334-0512
Panda Kitchen & Bath 704-597-5988
Tile Collection 704-541-8453
The Stonery 704-662-8702
Silestone 704-238-1659
Stone-N-Counters 704-332-9080
Walker Zanger 704-583-7000

Contractors
Absolute Remodeling 704-332-4343
Advanced Renovations 704-799-3999
Charlotte Home Improvement 704-364-0711
David Tyson & Associates 704-523-6521
Forte 704-494-4334
McAllister Group 704-333-1644
Meridian 704-573-2626
Tom Pruitt Builders 704-568-9191
Relicon 704-896-2206

Decks / Patios
Charlotte Patio & Wall 704-545-9255
Enduradeck 704-333-5339
Stone Works Design Group 704-821-9141

Green Builders & Suppliers
Banister Homes 704-634-7581
Beaver Brothers HVAC 704-637-9595
BRAE Rainwater Management 704-485-8031
Charlotte Glass Tinting 704-333-3636
Carolina Foam Solutions 704-400-6488
Personal Touch Interiors 704-483-9923
Pippin Home Designs 704-895-0000
Southern Energy Management 919-836-0330

House Designers
Avid Home Studios 704-846-1277
Carolina Design Group 704-895-7805
Swan Designs 704-799-2777

HVAC
Charlotte Comfort Systems 704-366-1661
Ross & Witmer 704-392-6188

Kitchen & Bath Accessories
Cornerstone Mantel Designs 704-333-8266
Custom Glass Works 704-597-0290
Ferguson Kitchen and Bath 704-370-2020
Howman Sales Group 704-400-0558
Knob Deco 704-655-9756
The Majestic Bath 704-366-9099
Stone Age Designs 704-377-4577
Lustro Italiano 704-583-1173

Landscape / Outdoor Living
Firehouse Casual Living 704-598-8787
Kevin James Landscape 704-552-8008
Wilson’s Wilderness Landscape 704-888-4635
Fun Outdoor Living 704-301-5626
Carolina Lawn and Landscape 704-846-1902

Lighting
Light Bulbs Unlimited 704-566-8844
Unique Lighting Showplace 704-553-1341
Organization Systems
California Closets 704-527-5505
Closet by Design 704-588-7272
Closet and Storage Concepts 704-525-6515
Hands-On Woodworking 704-892-7720
Premier Garage 704-561-3334

Specialty Contractors & Suppliers
Carolina Creative Glass & Design 704-845-1235
Neutocrete 704-663-7722
Smart Box 704-504-2500

Swimming Pools / Spas
Carolina Aqua Pools 704-543-8202
Pool by Design 704-333-7446

Windows / Doors & Related Suppliers
Artisan Shutter 704-296-9793
Signature Shutters 704-364-9733
Window & Door Pros 704-344-1875