Michelle Feder Alex Hayden

Related Articles

• Wine Country Dreams
• Part-time Leisure
• Green Grows Up
• Living With History
• Remodeling For Value

Thanks to Tivo, Alan and Kris Gibson sit on the couch in their Clyde Hill living room after the kids are in bed and tune in to A&E’s Flip This House. Fans of the TV show, the Gibsons are not just armchair enthusiasts, they’re living the dream. Despite busy days spent lawyering (Alan) and raising two young daughters (Kris), they serve as general contractors on the remodel of their home.

Alan found the 1967 home—designed by Ralph Anderson, one of Seattle’s mid-century-modern masters—while walking the dog in 2007. The property looked deserted, but about a month later the home popped up on Craigslist, and the couple bought it. Before long, the Gibsons got to work demolishing, installing insulation and painting.

The Gibsons have a history of investing hard work in their homes, of which they’ve had three since 1995. In the couple’s first, a 1963 split-level in the Somerset area of Bellevue, Alan did most of the work himself: paint, cabinets, millwork, windows. In 2003, the couple sold that home themselves, within weeks of listing it. Their next house, in West Bellevue, had been partially remodeled by a previous owner; over the next four years, the Gibsons made their own changes. They hired professionals to add a master suite but acted as their own general contractors when they added a bonus room of about 400 square feet. Alan estimates that the couple saved 25 to 30 percent by overseeing and coordinating the project themselves. 

An attorney and former broker of construction materials, Alan Gibson used “value engineering” to save on his Clyde Hill remodel. He “spent a fortune” on tile for the master bath but bought cabinets at Costco Home and customized them for the kitchen. Multiple bids helped him accurately predict final costs.

Alan Gibson’s kitchen before remodeling.

FOR LOVE AND MONEY
Nationwide and locally, homeowners are panning for real-estate gold with do-it-yourself efforts. According to the National Association of the Remodeling Industry, Americans spent $291 billion on home improvement in 2006, up from $107 billion in 1990. Last year 103,000 people visited the Seattle Home Show. Aggregate spending on remodeling in the region comes to about $300 million a year, estimates Dan Klusman, communications director for the Master Builders Association of King and Snohomish Counties.

How do you make the most of your remodel dollar? First, make a clear decision whether you are remodeling the house as an investment property to fix up and sell or as a home where you plan to

THE BUZZ Sonics rookie Kevin Durant, a Washington, D.C., native, has said Seattle feels like his second home. Instead of moving to Belltown or Bellevue, 19-year-old Durant opted to rent a Tudor home on a wooded, family-oriented Mercer Island cul-de-sac—to share with his mom. But with pending litigation against the city and the termination of the Sonics’ lease after 2010, who knows how long Seattle will be his home?

live long-term. When flipping a house, you buy low, improve the home so it looks attractive but keep expenses down, then sell—and your gains must cover your real-estate investment plus expenses such as excise taxes and closing costs. At the same time, says Greg Rosenwald, a Realtor with Coldwell Banker Bain’s Mercer Island office and a home-improvement enthusiast, he is cautious of homes that were remodeled purely for investment. “It’s more likely that the affluent buyer will be attracted to something that has been done out of love,” he says.

When it comes to remodeling, the highest level of expertise is usually required in kitchens and baths, and conventional wisdom assumes that those two rooms offer the best return on investment. But that’s not necessarily true, according to the MBA’s Klusman. “The kitchen involves a lot of planning, as do bathrooms,” he cautions. “It is easy to spend $45,000 to remodel a small bathroom and not necessarily recoup the investment when you sell it.”

According to Remodeling magazine’s latest “Cost vs. Value” report (see box below), the best return in 2007 came from replacing old siding with fiber-cement. Nationwide, sellers got back an average of 88 percent of their investment in upscale siding when they sold their homes, the magazine’s editorial director Sal Alfano told The Washington Post. (Sellers in the Pacific region made out even better, seeing more than 100 percent returns when they replaced old siding with fiber cement.)
 
Many homeowners have the know-how to do some remodeling projects themselves, but not necessarily professional-grade skills appropriate for higher-end homes. Before you apply any elbow grease, consider your abilities and limitations. Think about how much time you wish to spend and what you can realistically accomplish. To determine what to do yourself and what to delegate, consult the experts at events such as the Remodeled Kitchen and Bath Tour.

The financial gain when you sell your home is a benefit, but don’t think of a remodel in simply economic terms. As Rosenwald notes, “The everyday enjoyment you get out of a remodel is the best return you can get.” 

REMODELING COSTS
This grid from Remodeling magazine shows the average costs of upscale remodeling projects in 2007 and return on investment in the Pacific region (Washington, Oregon, California, Hawaii and Alaska).

Project (Upscale) Bathroom Addition Bathroom Remodel Major Kitchen Remodel Siding Replacement (fiber-cement) Siding Replacement (foam-backed vinyl)

Job Cost $83,573 $56,822 $117,254 $13,637 $14,760

Resale Value $70,254 $48,139 $104,241 $13,766 $11,855

Cost Recouped 84.1% 84.7% 88.9% 100.9% 80.3%

*Source: Remodeling magazine’s “Remodeling Cost vs. Value Report 2007”

EYE ON DESIGN

Terry Allen, a Realtor specializing in luxury properties for Coldwell Banker Bain, suggests buyers go west. “West Seattle will always be considered a value,” he says. “It’s right on the beach; it’s kind of a sweet little deal.” Right now he’s sweet on the BonV, designed by architect Eric Cobb. These three ultra modern, concrete-and-steel Alki townhomes, scheduled at press time for February 2008 completion, offer an alternative to high-rises and faux-craftsman homes. The designers strive to give buyers the experience of a custom home, without the premium price and custom lead time. Flip Builders built the first three and is developing 11 more nearby, slated for completion in 2010.


Editor’s note: Seattle Homes & Lifestyles is expanding its real-estate coverage. Please e-mail your feedback and suggestions.