Phebe Etheredge Page 1

Last month we gave you several great ideas regarding the latest in design trends. Per-haps you may be inspired. Are your kitchen appliances avocado green or harvest gold? Is your bathroom tub a freestanding footed tub that was not intended to be “chic”?

You have decided that you are itching to remodel! However, you ask the question, “What is the value of a major kitchen renovation, remodeled bathroom or a family room addition and will I get my return on investment at the time of resale?” This is a question you seriously need to ask yourselves if you think you might move in the not too distant future. However, the return on your investment should not be the only reason to improve your home. Many times it is simply a matter of doing it for yourself and personal enjoyment. So take heed!

To better educate you, the following information was provided by multiple resources including but not limited to: Realtor Magazine and Remodeling Magazine.

MAJOR KITCHEN REMODEL

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $42,660 $33,890 79.4% $75,206 $60,367 80.3%

Atlanta 41,733 43,625 104.5%

Upscale

The kitchen is still the heart of the home! Nearly all buyers agree that the kitchen is the most important room in the home. It’s where the whole family comes together every day. The kitchen needs not only to be organized and functional, but aesthetically warm and beautiful. A few tips . . . choose appliances, fixtures and materials consistent with the square foot value and not beyond the quality of the rest of the house.

TIME TO REMODEL?

Volume IX, Issue 9

Personal Note

It is my pleasure to pro-vide you with important

information that can increase the value of your home. It is only

one of the many services I offer as your

professional REALTOR. Call me when you, or your family or friends,

need advice. I’ll be happy to help!

Inside this issue:

Time To Remodel? 1

Kitchen 1

Family Room, Bathroom, Master Suite

2

Sunroom, Deck, Basement

3

Windows, Attic, Roof 4

Other Values 5

Market Update - Gwinnett

5

Phebe Etheredge Jenny Pruitt & Associates petheredge@mindspring.com 404-851-0727

Phebe Etheredge Page 2

Your family has grown and you need more space? Think about adding a family room. It’s a costly proposition but, most families find it well worth it in the long run. For the most return, the space should be heated and cooled. For all major renovations, it is advisable to hire a professional contractor so that all permits are obtained and building codes are followed.

FAMILY ROOM ADDITION

BATHROOM REMODEL

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $52,562 $42,347 80.6%

Atlanta 52,116 43,000 82.5%

Upscale

As a homeowner, designing a new bathroom can be a much anticipated event whether your existing bath is outdated or simply builder-grade standard white tile and cabinets. To have a great new look, keep the existing bathroom size and upgrade the various components which may include cabinets, countertops, sinks, faucets, tubs, shower, tile, framed mirrors and lighting. Pricing will vary considerably.

“For all major

renovations, it is

advisable to hire a

professional contractor

so that all permits are

obtained and building

codes are followed.”

Volume IX, Issue 9

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $9,861 $8,887 90.1% $25,273 $21,629 86.6%

Atlanta 9,481 11,675 123.1%

Upscale

Master suite or private retreat? Men and women alike want a space to get away, relax and enjoy their time together. Selection of materials and finishes should be done to create a calming effect. This is your personal space and your place for rest and sleep. Ideally, the addition should be at the back of the house where it is most quiet and away from noisy heating and cooling elements. It’s also nice to have access to an outdoor patio or porch to enjoy your morning newspaper and cof-fee. A few things to consider: scale, balance, lighting, comfort and colors.

MASTER SUITE ADDITION

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $70,245 $56,257 80.1% $134,364 $104,200 77.26%

Atlanta 67,373 75,625 112.0%

Upscale

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The perfect place to get away from the daily hustle and bustle is right here. Outdoor living areas are very important, particularly in the higher priced markets. Members of the family want choices and in Atlanta, a sunroom is the perfect choice. Our climate warrants almost all year usage and receives one of the highest returns on investments nationwide. Exposed post and beam is very popular with vaulted ceilings and ceiling fans.

SUNROOM ADDITION

Volume IX, Issue 9

Whether casual or elaborate, a deck transforms your backyard into additional living space, providing an inviting domain for entertaining, recreation and relaxation. A deck not only enhances the cosmetic appearance of the home, but also adds value to the property. Built-in extras such as benches or a picnic table are a handsome and func-tional solution to the problems of weather-worn, outdoor furniture and limited space. By constructing a bay to house a barbecue grill, another eyesore can be hidden while adding an interesting design feature to the deck.

DECK

Basements are now like third floors with the same finish levels as the rest of the home. These ter-race levels often include family rooms, media rooms, billiard rooms, wet bars, wine cellars, and a guest bedroom or an office. Due to the project size and quality, costs can become significant and resale value will vary.

BASEMENT REMODEL

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $31,063 $22,002 70.8%

Atlanta 30,483 30,625 100.5%

Upscale

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $6,917 $6,000 86.7%

Atlanta 6,784 6,425 94.7%

Upscale

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $47,888 $36,457 76.1%

Atlanta 48,185 47,625 98.8%

Upscale

“Outdoor living areas are very

important, particularly in the

higher priced markets.”

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The benefits start immediately! From enhancing your home's interior to adding to its curb appeal, new windows and doors transform a home from ordinary to outstanding. What's more, they pro-vide one of the best returns on investment of any home improvement project. While in the process, think about the possibility of changing size and location.

WINDOW REPLACEMENT

ATTIC ADDITION

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $9,273 $7,839 84.5% $15,383 $12,875 83.7%

Atlanta 9,305 15,625 167.9%

Upscale

Need more space for a new bedroom or living space? Look Up! No question, a professional is needed to evaluate the structural integrity first and foremost. Essential things to consider: Take advantage of the attic angles to create niches and built-ins. Install sky lights for additional natural light. Put sound absorption material on the floor before putting permanent flooring in. Add new gable end dormers. Lastly, don't forget about adequate heating and cooling!

“Roof replacement can

result in a properly

functioning roof for 20

to 50 or more years!.” Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $35,960 $29,725 82.7%

Atlanta 35,826 40,875 114.1%

Upscale

Do explore your options for roofing materials. Composition roofing is the most commonly used material, but other options are available such as tile, concrete-masonry and metal roofing and are worth considering. Cost alone will not determine quality, and that is good news, because roof replacement is one of the more expensive aspects of the typical home's construction and mainte-nance program. Yet, with careful selection of materials, qualified contractors, proper installation practices and modest maintenance, roof replacement can result in a properly functioning roof for 20 to 50 or more years.

ROOF REPLACEMENT

Midrange

Job Cost Resale Value Cost Recouped Job Cost Resale Value Cost Recouped

Nat’l Average $11,376 $9,197 80.8%

Atlanta 11,349 17,250 152.0%

Upscale

Volume IX, Issue 9

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Unlike other kinds of investments - stocks and bonds or bank CDs, for example - the value of any remodeling project includes elements that can’t readily be measured in dollars and cents. In some cases, the benefits are tangible. Replacing windows, for instance, typically adds comfort and reduces energy costs. The same is true of remodeling projects that include an upgrade of house systems - replacing HVAC equipment with more efficient models, for instance. A kitchen remodel often includes upgraded appliances that are both easier to use and more energy-efficient. Other benefits are intangible but no less real. Adding a family room can improve the quality of life for a growing family. Likewise, increased storage in a new master suite may free up space for an exercise room in another part of the house. Taken together, the overall effect is reduced stress, increased comfort, and improved physical and mental well-being. And when the house is sold, the equity is tax-free. Few other investments can make the same claim. Nevertheless, if resale value is a major factor in any decision to remodel, the best course of action is to consult with a professional on cost and seek an assessment of resale value from a realtor active in the particular neighborhood.

OTHER MEASURES OF VALUE

Volume IX, Issue 9

Following a period of rapid growth in the 1980s and 1990s, Gwinnett has become a true live-work-play community, with big-city shopping, thou-sands of employers and more than 300,000 jobs. Gwinnett now boasts excellent facilities for recreation, professional sports, concerts, conven-tions and cultural events. An effective, efficient government is meeting the challenges of rapid growth, while maintaining excellent credit, and keeping future debt burdens low. Success continues to attract tens of thousands of new residents every year.

Gwinnett was one of the nation’s fastest growing counties in the 1970s and 1980s. While the rate has slowed, Gwinnett is still growing. More than half the total land area has now been developed. In May 2005 the county realized a 15.2% increase in single-family building permits. This was 7.8% above May of 2004. For the year, the average monthly number of single-family permits is 0.8% above last year. According to the Census Bureau, Gwinnett added 27,000 people in 2004, and the forecast is for at least another 26,000 in 2005. As the population continues to grow at strong levels and mortgage rates remain low, single-family permits, as well as local construction, should remain strong for some time.

During the 3rd quarter of 2004, Gwinnett County employment grew 1.9% adding 3,900 jobs. The manufacturing sector had a net increase of more than 400 jobs, and the service sector added nearly 1,500 jobs, many of which were in the health care and improving hospitality industry. Government employment added 1,600 jobs. In terms of annual job growth, some of the strongest sectors included real estate, educational services, construction, and local government.

GWINNETT COUNTY FAST FACTS

Population: 700,794 Location: Approximately 30 miles northeast of Atlanta County Seat: Lawrenceville, GA Area covered: 437 square miles Adjacent Counties: Barrow, DeKalb, Forsyth, Fulton, Hall, Jackson, Rockdale Of Interest: 80% of the United States population is within a two-hour flight. Gateway to metro Atlanta from north and northeast via I-85 and I-985 Easy access to University of Georgia (at Athens) via University Parkway/GA Highway 316 Minutes from scenic Lake Lanier Municipalities: Auburn Lawrenceville Berkeley Lake Lilburn Braselton Loganville Buford Norcross Dacula Snellville Duluth Sugar Hill

MARKET UPDATE - GWINNETT

“. . . If resale value is a

major factor in any decision

to remodel, the best course

of action is to consult with a

professional on cost and

seek an assessment of resale

value from a REALTOR

active in the neighborhood.”