Dan Meisler | For AnnArbor.com

In a little more than two months, a 1958 ranch in the Ann Arbor Hills area will be transformed into a completely refurbished, Arts & Crafts style home and put on the market for upwards of $500,000.

Karen Millman of the Millman Development Group, which has renovated and built several high-end homes in the area west of Nichols Arboretum, said the home will receive a new roof, windows, hardwood floors, landscaping, back porch, a renovated basement and new interior and exterior color scheme.

"I feel there's a lack of empty-nester-type housing in this area," she said.

Dan Meisler | For AnnArbor.com

To accommodate empty-nesters' need for one-level living, Millman is moving the washer and dryer to the first floor. The home has three bedrooms, and will have two full baths when its finished, which Millman hopes to do in 8-10 weeks.

The reason she chose to focus on a home in the $500,000 range rather than Millman's usual scale of closer to $1 million is what Millman called a market movement away from larger residences.

"There still is a market for the high end ... but I honestly feel that people are asking themselves what they need, not what they want," she said.

Aside from the ranch, Millman's other project is a new $1.1 million home in planning on Dorset Road.

Dan Meisler | For AnnArbor.com

Statistics from the Ann Arbor Area Board of Realtors bear out the trend toward the lower end of the market, part of which is attributable to the federal first-time home buyer tax credit. According to the Realtor statistics, the average sale price of a home in August was $198,121, down from $218,626 in August 2008.

Millman was hired to do the renovation by the owner, Bruce Wallace, who, according to city records, purchased the home in 2003 for $384,500.

"The homeowner had tried to sell the home for close to a year," Millman said.

She said Wallace, a friend, gave her complete control over how the finished product will look. She estimated she'll have a total of at least 30 workers on site over the course of the project.

One of the goals is to brighten up the home with more sunlight, she said.

"In general, the probelm with a 1950s ranch is all the small, dark and choppy places," she said.

Stormwater runoff will also be rerouted during the renovation, Millman added.

"It'll be a gem of a home," she said.

Freelance reporter Dan Meisler can be reached at danmeisler@gmail.com.