ProCraft's Remodeling Blog

If I’ve heard it once, I’ve heard it 17 ¾ times. You’ve thought about it too. “What’s the return on my remodeling investment going to be after my kitchen or basement or bath is done?” In other words, how much damn money will I get back when I sell this dump if it has a spiffy new kitchen or a spa-luscious master bath? On the surface, that seems like a really great question. A really smart, insightful question. A responsible question. But, the answer you are hoping will enlighten you, the answer that will quiet your fears, the answer that will make you appear intelligent to your friends just may do the opposite. It may render you a fearful idiot stumbling in the dark. Really. And here’s why…

Everyone wants ROI. Even people who don’t know what the hell ROI is want it. Figuring you return on investment for your savings account or your stock portfolio or your IRA is pretty easy. How many dollars in, how many dollars out over a given period of time. Black and white. Cut and dry. Financial advisers can do that all day long and still have time for golf.

Some folks try and apply the same simplicity to the world of remodeling. Remodeling Magazines’ Cost vs. Value Report is a prime example. It is produced every year and provides estimated returns on various types of remodeling projects, based on a number of criteria including geographic location and project “plush ness”. You find this report everywhere – it’s Tweeted ad nauseam, it’s paraded around in articles, it’s referenced and referred and pointed out and pointed at. Contractors us it, real estate agents use it, lenders use it, financial types use it. And they should, because there isn’t much else like it. Plus, people want to know what the deal is, because it isn’t black and white, cut and dry.

Having your remodeling projected wrapped up with a nice little ROI bow is a comforting thought. Know what you spend, know what you’ll get back. Unfortunately, it just isn’t that simple, despite the nice charts, graphs, and analysis provided by those magazine people. The reason remodeling can’t be analyzed like a stock investment is, in fact, quite simple. A big part of the remodeling ROI is intangible. That’s right – you can’t see it, you can’t touch it, you can’t cook on it, you can’t  poop in it, you can’t have guests sleep in it.

Remodeling your home has two kinds of ROI – tangible and intangible. Tangible is the kind the Cost vs. Value report talks about – dollars in, dollars out. Tangible is what most people think about when they wonder how much they should spend on a project. Intangible is a whole bunch of stuff that isn’t made out of wood or granite or drywall. Intangible can be, and often is, more important than mere dollars in and out.  Here’s why…

This ROI saves you eight months of marketing time when selling your house, allowing you to move on with your life. This ROI creates a magical backdrop to so many family memories. It makes you feel special during a neighborhood party. It wraps you in comfort when the world gets too big. It fills you with pride, builds your esteem, lets you stand tall. This ROI really doesn’t have a price you can put your finger on. You decide what it’s worth.

When it comes to remodeling, we don’t do it because we hope to make money from it. Just as we don’t buy that car we love because we think by driving it, it will go up in value. Or that stunning diamond tennis bracelet. We buy them because of the intangible benefits we hope they will provide. You can still do business in a run down, aqua-blue, gold swirl vanity topped bathroom. But how does that make you feel? Like a big pile of emptiness (you didn’t think I would go for the obvious cliché there, did you?)?

Our lesson here today is simple – remodeling has two types of ROI. Tangible and intangible. While the tangible is important, and we don’t want to be stupid, don’t overlook the intangible. For it is there that the true rewards of a well done remodeling project will be reaped.

Mark Lewis

ProCraft Contracting, Inc.

How many times have you seen this – you visit your neighbors or your in-laws or your bosses house, and they proudly show off their new granite counter tops. You think, OK, at first glance they look good. But then you notice the vintage 1987, builder grade, cardboard and oak cabinets they stuck the new counters on. Then you notice that the kitchen design still sucks. Then you notice the silverware drawer still doesn’t close properly and the corner base cabinet requires full spelunking gear to reach the back recesses.

Starting to see the issue? Those really cool, visually stunning counter tops plopped onto really lame, visually repulsive cabinets just isn’t a good idea. In fact, it can make you look down right stupid. No one wants to look stupid, not me, not you. So, what does one do to avoid the dunce cap and still deal with the gold and blue swirl laminate counters with the metal edge? After all, granite is so in, man!

The logical answer is to simply gut the kitchen, add 10 feet to the back of the house, install everything new, and invite the entire neighborhood over to gloat once it is completed (spoken with all the self interest of a true remodeler!). But, we all know that sometimes a full kitchen remodel isn’t always the best option. Maybe you just don’t have the budget to swing it (a second job at a fast food establishment would cure this problem). Maybe you are planning on moving in a year and won’t benefit from a new kitchen all that much. In that is the case, replacement of just the counters can be a great a great idea. But, and it’s a big but… if your kitchen suffers from an idiotic layout or from cheap, builder grade, crap cabinets, don’t do granite. It isn’t worth the investment of your hard earned dollars or your reputation as the sharpest knife in the drawer.  

Here’s the problem with granite (or any higher end counter top material) – if you later get the job at BK and decide to fully remodel the kitchen, your investment in the existing granite is probably wasted (maybe parts can be re-used, but maybe not). Or, you decide to sell the house. Shiny new granite counters doesn’t equal a remodeled kitchen. If the design is bad or the cabinets are cheap, your kitchen will still need to be remodeled, new tops or not. But now, the remodeling contractor will have to carry heavy granite tops to the dumpster, and that will cost even more. Buyers therefore offer even less. 

So, if granite isn’t such a good idea in this instance, what is? Blue swirl has to go. How about new laminate. It is considerably cheaper than granite or the other upscale options, it comes in a ton of colors, and can actually look pretty darn good. It can really change the look without a huge investment. Now, if you decide to later remodel, you aren’t out a bunch of dough and you can even cut up the laminate counters and use them in the garage as a work bench. Or, you decide to sell and can now ask fair market value for your home and attract buyers who won’t have the false expectation of a dream kitchen.

You can even dress up the laminate counter tops with a nice tile backsplash. This adds visual interest to the kitchen, allows for many decorating options, and makes spaghetti sauce clean-up a breeze. One note here – if you’re thinking about a tile backsplash, forget the 4” laminate backsplash – have the counter run straight into the wall. Bring the tile right down to the counter top. Trust me, it will look great.

Even though granite is great, laminate counters have their place and sometimes make more sense than the upscale options. And they can increase your IQ – at least in the eyes of your in-laws.

Mark Lewis

ProCraft Contracting, Inc.