Cost-vs-Value studies consistently reveal Kitchens and Baths recoup 77-85% of the remodeling cost at resale. For sellers, a little extra work can mean not only a difference in how much they can ask for their home but also if they get to the closing table at all. Most buyers will not invest in a house that has only one bathroom no matter how small the house. Adding a bathroom to a master bedroom is an extremely smart move and adding a few luxurious spa touches may just add the emotional spark that gets your home sold.

This week, Cherie, Rich and I talked with Krista Watterworth, the host and designer of HGTV’s Save My Bath. Krista has transformed dozens of America’s ugliest bathrooms into beautiful spaces that showcase her unique design aesthetic and has been featured in The New York Times, Newsday, NY Daily News, CNNMoney, and US News & World Report. Krista shared with us 7 points to consider when taking on a bath remodel that will practically pay for themselves:

1: Spa Appeal: Add a few luxury items such as exotic wood, a Japanese soaking tub, or a chromatherapy feature.
2: Size Matters: If you have a bathroom that is smaller than 8 ft. x 8 ft. consider enlarging.
3: Neutrals Nurture: Get rid of those green and pink fixtures.
4: Countertops Count: Granite is still number one for durability and Marble is beautiful but soft.
5: Go Green: Any time you can choose Earth friendly products everyone wins.
6: Avoid Headaches: Before you start any major projects, check to see if there is a concrete slab or lead pipes below the sub-floor.
7: Make an impression: To add value, create a master bath with over the top amenities; a walk-in closet with an island, his and hers vanities, an exercise area, a space for a chaise lounge, future buyers will definitely take a second look.

This week’s Real Estate Insight:

Get the advice of an experienced Real Estate Agent who knows the neighborhood and the impact of home improvements. Keep your improved home’s value just below the top value. The high-end homes will help buoy your home’s value while offsetting pressure from low-end homes.

Listen to the Podcast:

Listen to the entire show with guest Krista Watterworth here on our Podcast.

When I learned last week that the Governor’s proposed budget for fiscal year 2008 includes a retroactive cap on the Historic Tax Credits, I was not very happy. The program supplies tax credits worth 30% of construction costs and while it is true that the state loses in tax revenue, it also creates economic output through new jobs, construction spending and job creation. Here is a copy of the letter that I sent to the Governor and the members of the House Finance Committee. I would love it if you would take the time to send a similar letter as well:

Dear__________

I am the founder and President of Residential Properties LTD. We have seven offices throughout the state, employ 200 people and we are the largest independent residential brokerage firm in the state.

My purpose in writing is to urge you to oppose Governor Carcieri’s proposed retroactive and prospective cap on the Historic Tax Credits. Having spent the last 25 years selling and renting housing throughout the state, I can personally attest to the fact that the proposed cap would be extremely harmful to the state for several reasons:

1: The need for additional housing throughout Rhode Island is a pressing issue for many families and the proposed change will definitely reduce the supply of housing.

2: The Historic Tax Credit allows developers and sponsors to provide more affordable housing units and to lower the rents and prices they charge.

3: Without the current Historic tax Credit it would not be economically feasible for many private developers to renovate older vacant, dilapidated and underutilized mills and other buildings.

4: Besides contributing to the badly needed supply of housing, especially for low and middle income households, the existing tax credit generates significant investments that create jobs, increase state and local income and property tax revenues and serves as a catalyst for broader downtown and neighborhood revitalization.

For all of these reasons, I want to encourage you to support Rhode Island’s housing and economic development by opposing this short-sited proposal. Thank you for your consideration.

This week’s Real Estate Insight:

Eliminating the Historic Tax Credit is extremely short sighted. Grow Start Rhode Island estimates that the state has realized a return of $1,170,000 “total economic output” for the $200,000 invested in the credits.