Remodeling Dos and Don'ts

(Editor's note: To return to Eric Gillin's story about home improvements that pay you back, click here.

Don't overspend. Adding expensive granite countertops may seem like a good idea, but if everyone else has Formica, you probably won't recoup the cost. Homeowners looking at moderately priced homes likely won't fork over a premium for luxurious perks. Also, "if they're in a small community without a lot of appreciation, they won't see the value," says Jim Neidner, president of Neidner Construction & Remodeling in Houston.

Don't be too unique. Your uncommon tastes could work against you when it comes time to sell. Adding a tennis court in the backyard is great, but prepare to remove it if the next homeowner is a gardening aficionado. "I had a neighbor who had a custom-built house with floor-to-ceiling marble," says Sharon Hanby-Robie, author of My Name Isn't Martha, but I Can Renovate My Home. "You couldn't paint over it. You couldn't carpet it. It took three years to sell that house."

Don't expect a return on every change. Pools can be a terrible investment, especially for homes in colder climates, because few people want to fish leaves out of the filter every day. And be wary of fads such as rock gardens, ponds and waterfalls. "That's done for your pleasure, not resale value," says Len Robinson, co-author of the Consumer's Guide to Remodeling & Construction.

Check references. A good contractor can make a huge difference, so it's important to check references. Blindly choosing a contractor from the Yellow Pages is dangerous because some perform shoddy work, overcharge and miss deadlines. Ask friends and neighbors for recommendations, or call the local homebuilder's association for references. "If you hire a contractor that does a bad job, you've wasted your money and won't add any value to the house," says Jim Cory, senior editor of Remodeling Magazine.

Have a plan. Knowing exactly what you want, in advance, can save time, energy and money. If you're on the ball, contractors will know exactly what you want and won't be inclined to add extra costs. "If you tell a contractor 10 to 20 different things, you won't get accurate bids," says Neidner. "You'll save money if all the i's are dotted and the t's are crossed."

Use universal design. With baby boomers nearing retirement, universally designed features, such as wider doors and handles instead of knobs, are becoming standard. "It's beneficial to everyone in the house, even if they're not infirmed or handicapped," says Michael Strong, chairman of the National Association of Home Builder's certified graduate remodeling program.

Check out the neighborhood. Since you get the most value for a remodeling job when keeping in-line with neighborhood standards, check what neighbors have. Ask a real estate agent to perform a customer market analysis on your neighborhood to provide a snapshot of what houses look like. "You need to know what you're up against," says Hanby-Robie.

To return to Eric Gillin's story about home improvements that pay you back, click here.