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Success Story 5

Homeowners Avoid Over Improving Their Home
To Get The Most Bang For Their Buck

The Situation

The size of client’s home along with the current configuration of the floor plan did not meet the needs of their growing family.  As a result, clients were interested in reconfiguring the existing floor plan and adding a second story. More importantly, the clients were interested in knowing whether doing so made sense financially.

The Solution

After touring their home, it was clear the clients needed more space.  Yet, how they lived in their space was still unclear.  So, we took stock of the activities that take place in their home as well as the impact of these activities on the design.  We also took note of their individual preferences to determine their must-haves versus nice-to-haves.  We also determined that the clients intended to stay in the home at least 7 to 10 years after the remodel.

The designer hired to turn their vision into reality used this information to develop up to three floor plans that would meet their needs. These plans were presented to the clients in 2-D and high concept 3-D so they could preview their proposed remodel and addition without having to start construction.

We also assessed remodeling and real estate sales activity in their immediate and surrounding neighborhood to determine whether the clients’ vision would have been an over improvement for the neighborhood.

The Results

The clients were provided with a realistic budget and schedule for extensively remodeling their existing home based on the floor plan selected.  This budget was compared to the cost of selling their existing home (i.e. real estate commissions, points and loan fees, escrow costs, moving costs, etc.) then buying a 2-story replacement home that aligned more closely with their space requirements and modestly remodeling it to align with their lifestyle.

After comparing these two scenarios we determined that an extensive remodel of the clients’ existing home would have over improved the home for the neighborhood, since few, if any, homes in their neighborhood had sold anywhere close to what their home should be worth after remodeling.  Without comparable sales data to prove their home’s value we could not justify such an extensive renovation.  Hence, we recommended that it would be in the clients’ best interest to sell their existing single story home and purchase a 2-story home that could be remodeled with recouping much of their improvement costs in mind.

Client Comments:

“We like…just about EVERYTHING.  Thanks Monica!”

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