By Mark Zweig - 11/28/2011
Buying an old house, doing some work on it and reselling it is one way to
make some money and exercise your creative powers.
But before you grab your circular saw and tape measure, understand what
you're dealing with. A house that isn't renovated correctly can sit on the
market for years. You have to make renovations that targeted buyers will want to
buy. Renovators need to consider how their changes will appeal to buyers who are
willing to pay for location and quality-based premiums.
Here are six common mistakes people make when remodeling old homes with the
intent to sell:
- Failing to alter the existing floor plan to make it more functional.
Although it can be scary, renovators sometimes need to knock down a wall or two
and re-partition. A few minor changes can drastically improve the feel and
livability of the space. Historical houses often have small bathrooms and
kitchens. People just did not have as much stuff in the 1900s and the appliances
we have today didn't exist. These homes also don't have enough closets or
storage space to suit a modern family's needs. Changing the exterior entrances
to the home, making sure doors are hinged so they open in the right direction
and ensuring windows are in the proper location can really increase the value of
a home.
- Thinking everyone wants granite countertops. Granite countertops once were
expensive and exclusive. Today, they come in $129,000 subdivision houses.
Renovators need to be aware there are many other options. Ceramic tile with
no-drip edges and sanitary cove offers most of the same benefits, plus a wider
variety of colors. Granite also has been found to emit radon gas in some cases.
Tile and other materials don't off-gas and bring a nostalgic look and feel to
the space.
- "Cheaping out." Cost shouldn't dictate every decision. The cost difference
of using a pressboard door instead of a wooden one is about $50. You'd more than
make up the difference when you sell the house. Using 4-inch instead of 6- or
8-inch baseboards, not using crown molding and installing cheaper door hinges
and knobs are great ways to shave pennies off your costs, but the combination of
these little details can make your house look cheap and unappealing to your
target audience.
- Using modern or synthetic materials rather than traditional ones. Thinking
everyone wants "low maintenance" is a major - and often wrong - assumption. Wood
may cost more initially and need more care over its lifetime, but many buyers
prefer to have something that's real and ages gracefully over time. Vinyl or
concrete siding, aluminum or fiberglass garage doors and laminate flooring are
examples of fake vs. real materials, and the wrong choice can destroy the
historical character of the house. Buyers can tell the difference even if they
can't articulate it.
- Making an old house's exterior look modern instead of era-appropriate.
Anything that destroys the historical integrity of the home is a big detraction.
Replacing the original rail systems with modern rails, tearing off shutters or
stripping off other architectural details and ornamentation destroy the historic
aesthetic of the home. Particularly in northwest Arkansas, I see this common
mistake of builders and renovators: installing replacement windows that don't
have pane dividers called muntins. It saves a few bucks, but sends off cues it's
not an old house, but a modern caricature of something old.
- Always painting the exterior of an old house white. Some people have the
misconception all historical properties were painted white. It was really only
in the early 20th century that America started "whiting out." Earlier houses -
and many later ones - were painted all colors. You need to look at the era and
the type of house and do some research when picking colors. Another common
practice is painting window sashes white. Why not branch out and try a different
shade for the sashes? It's a subtle touch, but could make the difference in
making your house stand out from the crowd - and sell.
Mark Zweig is the owner of Mark Zweig Inc., a Fayetteville-based residential
redevelopment firm. He is also the founder and CEO of ZweigWhite LLC, a
management consulting, research, media, publishing and training firm, as well as
a professor at the University of Arkansas' Sam M. Walton College of Business. He
can be reached at MZweig@MarkZweig.com.