When it comes to a renovation- be it a kitchen, bathroom, or an entire apartment - it's natural to want it to reflect your needs and tastes. But you should take the long view:
In terms of resale, which renovations will hold their value, and, more importantly– will they help or hinder a sale?
Having worked with both New York City buyers and sellers, I observed: "It's less about the bling than it is about quality work. Assume that everything you put in, you aren't going to get back- but using high-quality materials that aren't taste-specific can only improve the apartment and increase its value".
There's no definitive formula for calculating the value you get from specific renovations. But the 2010-11 Remodeling Cost vs.Value report from Remodeling Magazine notes that even with a minor kitchen renovation- which in NYC averages $24,000 and includes replacing cabinet fronts and counters and installing a mid-priced sink, - energy efficient stove- one can recoup nearly 87 percent of the costs.
I can say from my discussions with brokers that it's certainly worth it to renovate and modernize the kitchen and bathroom and use better-quality appliances. A broker gives an example of a three-bedroom West Village combination, where the owner did several things right, including adding lots of storage in the kitchen, going with modern fixtures in the bathrooms, and installing white oak floors that were "elegant, very neutral" and skim coating the walls. "In a building where a typical three-bedroom went for around $2 million this apartment sold for $3.14 million".
MORE UPGRADES THAT ADD VALUE:
Home office. One place had a long, narrow closet, and they opened up the wall, put doors on it, and created a home office that became a very important point when they were selling.
Lighting. Mix things up for a better look and feel, using decorative and halogen, sconces and pendants.
Entryway. Carve out a small gallery space at the front, so there is a sense of arrival in the home.
Central Heat and Air. Very expensive but if you are doing it, get a multi-zone system.
Sound Systems. People appreciate having the wiring work and speakers installed. In a weakened market, they are willing to pay for plug-and-play.
Solid Doors with good hardware. You know when a door feels flimsy.
Changing out a door is relatively easy.
WHERE NOT TO PUT YOUR MONEY:
Custom windows treatments. People will spend tens of thousands on big, long, heavy drapes and they are detrimental to a sale.
Millwork and custom built-ins. It's very expensive to do well, and at the end of the day, the buyer might ask you to rip it out.
Venetian- plastered walls. Ninety-nine percent of the time, it's done terribly.
Too much technology. I've had people say "Just give me a dumb house", a broker told me.
Marble and terrazzo flooring in the living area. "This is not MIAMI".
It's an impediment to selling and at a significant cost.