USAA Magazine Fall 2006

Checklist forbuyersBesides renovations, other factors affectresale value and what it costs to insure ahome. The Insurance Information Institutereminds buyers that where it is, how it’sconstructed, and the kind of shape it’s incan send your insurance rates up or down.The III says to consider:■ Construction: Near the Atlanticor Gulf coasts, consider a brick home, moreresistant to hurricanes, and invest in hurricaneshutters. In a seismically active region,look for newer homes built to current code, orolder homes bolted to foundations. They arebetter able to withstand earthquakes.■ Age: Older homes sometimes havefeatures such as plaster walls and woodenfloors that could be costly to replace. Suchspecial features may raise insurance cost.An older home updated to comply withcurrent building codes typically is less expensiveto insure than an older home thatis not up-to-date.■ Location, location,location: Homes near the coast costmore to insure because the risk of hurricane,wind, or water damage is greater.You also need to think about the threat offloods or earthquakes. You will need separateinsurance for these risks and it can becostly. Flood damage is only covered by aNational Flood Insurance policy, which ismore affordable than you might think.■ Condition of the roof andhome: Considering a fixer-upper? Youmay pay more for insurance until clearimprovements are made. Note the roofcondition. A new roof in good repair willbe attractive to insurers and can save youmoney and aggravation. Fire-proof andhail-proof roofs give extra protection.■ Plumbing, heating,electrical systems: These systemscan wear out, become unsafe with age, orbecome dated as safer technologies areintroduced. Recent upgrades make yourhome safer and less likely to suffer fire orwater damage. For more, visit iii.org.important as the kitchen,” says AleneWorkman of the American Society ofInterior Designers.There, buyers expectdouble sink vanities. Steamshowers, rain-head showers,and multihead showershave gained popularity.Designer Sharon McCormicksays that rather than theonce-popular whirlpoolbathtubs, her clients whowant bubbles are choosingquieter hot-air tubs. “Themaster bathroom is becomingmore relaxing, serene, spalike,and romantic rather than therapeutic,”Ms. McCormick says.Without big bucks, plush towels, candles,and new cabinet pulls can make themaster bath seem inviting and updated.AROUND THE HOUSEOutdoor deck: If right for your climate,outdoor living areas make great investments.You can recoup more than 75 percentof the cost. To dress up an existing,weathered deck, restain it for minimalcost, says Dean Herriges of the NationalAssociation of the Remodeling Industry.Power-wash synthetic decks or cleanthem according to the manufacturer’sdirections. “Buyers are looking for theleast amount of work they’ll have to do,so if these things are done, it adds value,”Mr. Herriges says.Attics and basements: The atticmight transform into an extra bedroom,PaybackMASTER SUITENational average for amaster suite addition:$94,331Recouped cost:72.6 %of the costan office, or a playroom. “Especially in olderhouses, look into it,” Ms. Farrar-Wegenersays. “Get it as cleaned out aspossible. Put in good lightingso people can see thepotential.” Basements, too,have potential for more livingspace, Ms. McCormicksays. But she says not tospend a lot on them. Buyersoften expect this part of thehouse to be unfinished, so it’snot necessary to spruce it upjust to sell the home.WHERE TO RECONSIDERNot all additions add value. A midrangesunroom addition can average $49,551,with a potential for recouping the cost ofonly 66.3 percent. Home office remodelscost on average $20,057, recouping only63.4 percent of their cost.Look at neighborhood trends. “It doesn’tmake sense to put in a media room whenno one else in the area is doing that,” Ms.Farrar-Wegener says. “Yours isn’t a neighborhoodwhere people will look for thosekinds of amenities.”BOTTOM LINE“People want to envision living in yourhome,” Ms. McCormick says. “If you letthings go and get out of date, the impressionwill be that you’ve left other things, likethe roof and furnace, unattended, too.”Source for all average cost figures: Remodeling2006 Cost vs. Value Report, Remodeling magazine,remodelingmagazine.comIf you upgrade your home, you need to upgrade your insurancecoverage, too. Renovations can up the cost of what it would taketo rebuild, so make sure you have enough coverage.26USAA MAGAZINE WINTER 2007 USAA.COM