Imagine buying a home for $35,000 in California. Not likely, you’re probably thinking.
Not that long ago, in 1970, that’s the price Ken Plourde, a 79-year-old retired jazz bass player, paid for his 992 square foot home in Palo Alto.
Since it’s within walking distance from Stanford University, it’s not so surprising that when Plourde decided to sell his home it was snapped up by a Stanford graduate in China for $3 million. A tidy sum for his nest egg, wouldn’t you say?
Your Biggest Investment and Nest Egg...
For most people, their home is the biggest investment they’ll make in their lifetime. Many hope their home will help fund their retirement years. If you’re one of those folks who wants to sell their home when they retire, keeping it well maintained and up-to-date can increase your return on investment by thousands of dollars.
Since people want their home to be a real asset that appreciates over time, why do you suppose they hesitate when it comes to paying the price to keep it updated? After all, it’s hard to buy any vehicle for less than $15,000, and most cost much more. We all know what happens when you drive a car off the dealer’s lot – big time depreciation, unlike most homes that tend to appreciate in value.
When we receive calls from perspective customers, one of the first questions they typically ask us is, “How much per square foot do you charge to….”. Our answer is usually, “It depends…”.
When you consider that Ken Plourde’s Palo Alto house sold for just over $3,000 a square foot, it becomes obvious that there are many things to consider when you’re evaluating how much per square foot a remodel, or a new home will cost.
Think in terms of buying a new car. When you go to a car dealer, you don’t just ask them the price of a car. First you tell them what model and make you’re interested in, as well as the options you want included. All those things make a big difference in the price you’ll be paying for the car.
The same scenario applies to remodeling your home, or building a new one. We need to know very specific details before we can quote a price.
How much is the average remodel in our area? Well, that depends…
Cost vs. Value of Remodeling Your Home
According to the latest Cost vs. Value report published by Remodeling Magazine, bathroom remodels in the Sacramento area average $57,340 and kitchen remodels average $120,013. Remodeling also reports that you can expect to recoup 71% on a bath remodel and 69% on a kitchen remodel. Of course, the recoup cost doesn’t mention how much less you would get for your home if you tried to sell it with an outdated bathroom or kitchen. It also doesn’t talk about the time you get to spend enjoying the remodel yourself…
If those prices sound high, keep in mind they are averages in Sacramento. Uniquity Builders has done many remodels for much less money – and some for more. Again, it depends…
It’s hard to put a price tag on your quality of life though, isn’t it?
Feel free to share your remodeling experiences regarding cost vs. value.