An almost new home

Lolita Harper

Cosmetic makeovers are all the rage in Newport-Mesa.

The clients in these cases are not people, however, they are

homes. And they are looking fabulous in their autumn years, thanks to

the help of the fabulous five: contractors, architects, interior

designers, landscapers and the real estate market.

The rising costs of homes is doing two things: motivating

homeowners to remodel because they can’t afford to buy or to borrow

against the equity and reinvest in their homes while interest rates

are low, officials said. Regardless of the reason, numerous

residential plots have been turned into construction sites in recent

months.

Nick Satter, owner of OC Development and Construction and Gold

Coast Pool and Spa, said now is the busiest he has been in 20 years.

“It’s crazy,” he said. “I guess I am going to build the whole

world.”

Satter’s clientele is at an all-time high, he said, because people

realize they are sitting on potential million-dollar properties.

Homeowners want to improve their houses because they recognize that

upgrading and customizing their current home is a better value than

buying a bigger place. Especially in Orange County, Satter said,

“there seems to be no ceiling.”

People are “bunkering,” said Gus DeFalco, owner of the Floor Guys

in Costa Mesa. They have settled into a neighborhood and want to make

the best of their investment. Homeowners are taking money out of the

stock market -- although it has been pretty good since the “dot

bombs” -- and investing in their house, he said.

Rather than nips and tucks, homeowners are ripping and smashing

their way to larger, more modern homes -- turning back time on old

ranch-style houses on the Eastside and the bungalow homes in Newport

Heights. Many Newport-Mesa homes are 30 and 40 years old and in dire

need of some maintenance.

“People are looking around and saying, ‘I can’t look at this

avocado-green carpet anymore,’ or ‘This harvest-gold counter is

getting to me,’” DeFalco said.

A place for the family

Costa Mesa Mayor Gary Monahan is taking advantage of the ripe

home-remodel climate and adding two additional bedrooms and bathrooms

to accommodate his growing family.

“This is the best time you can ever do it,” Monahan said. “All the

factors are there to make this thing boom, and it’s just a matter of

how long it’s going to go on.”

Monahan’s Rural Place home will grow about 600 square feet, from

the standard, three-bedroom, one-bathroom house to a five-bedroom,

three-bathroom dream home.

“One bathroom doesn’t cut it for anybody anymore, especially not

with five kids,” Monahan said.

Speaking of bathrooms, they, along with kitchens, are the second

most popular home remodel, DeFalco said. Monahan and other homeowners

in the Newport-Mesa area are dealing with older homes, built in

simpler times, when people didn’t need multiple bathrooms, master

bedroom suites and recreation rooms. Now, DeFalco’s clients are

looking for modern bathrooms, with walk-in showers that have no doors

-- only an overhead nozzle that cascades down water.

The age of the houses in the area are at a point where a coat of

paint and some vinyl flooring won’t cut it anymore, DeFalco said.

Satter agreed, adding that Newport-Mesa homes were built in an era

in which modest homes sit on “good-sized lots,” ranging from a

quarter-acre to a full acre. People pay the premium price for the

land, bulldoze the home and build exactly what they want, Satter

said.

“What do you get in Orange County for $500,000 anymore?” Satter

said. “Every time I see a $500,000 home, it needs to be bulldozed.”

Unlike DeFalco, Satter does not do small projects, he said.

“I specialize in extreme stuff,” Satter said. “I do high-end jobs,

with custom design.”

Remodels hit the extreme

Evidence of the remodel craze can also be found on any wide-screen

plasma TV, comfortably situated in the new multimedia room of an

updated 1940s’ “freedom home.” America’s viewing audience can easily

click on one of the various shows dedicated to endeavors such as

landscaping, painting and interior decorating.

Costa Mesa knows of the insurgence of the home remodel trend first

hand, as Tom and Deirdre McCrory were the recipients of drastic home

improvement, courtesy of the ABC network show, “Extreme Makeover:

Home Edition.” For seven days, a small army of home improvement

experts descended upon the Eastside home to update the 1954 house to

accommodate the triplets expected in July.

Those who are improving their surrounding don’t fit a particular

mold, DeFalco said. They cover the gamut.

“We’ve got a bit of everything from snowbirds from the east,

grandparents that are downsizing and younger couples who are in their

first home.... Everybody is looking for quality of life in their

home,” he said. “It is their castle, where they nest. We’ve never

thought of ourselves as being in the flooring business, we are in the

problem business. The problem is people’s homes are ugly and our job

is to make them beautiful.”

bottom-line improvement

Not only does this trend make for more attractive street scapes,

those in home remodeling businesses are experiencing a boost in their

financial figures.

Satter said he is actually turning away jobs that are under

$100,000. DeFalco said he has also seen an increase in larger jobs.

“We’ve always been busy,” DeFalco said of his business that not

only offers flooring but a full range of general contracting

services. “We actually have less jobs per month but they are bigger.”

Do-it-yourselfers have also bought into the trend, as Home Depot

reported record-breaking figures for fiscal year 2003. For fiscal

2003, the company reported net earnings of $4.3 billion, compared to

net earnings of $3.7 billion in fiscal 2002.

Sales for fiscal 2003 increased 11.3% over fiscal 2002 to $64.8

billion.

* LOLITA HARPER is the Forum editor. She also writes columns

Wednesdays and Fridays. She may be reached at (949) 574-4275 or by

e-mail at [email protected].