Remodeling your home can bring big returns - a more comfortable lifestyle and a more valuable home when you decide to sell. Unfortunately, not all home improvements pay off at resale. Turn your home into your castle for next to nothing by choosing home improvement projects that pay for themselves at resale. Some projects could earn you 70 to 104 percent of your remodeling expenses back!
Some projects add more value to your home than others, because buyers will pay more for them. Adding a deck has the highest payouff, says Remodeling magazine's 2003 Cost vs. Value report. Nationally, homeowners on average recoup the total cost of this job plus an extra 4 percent when they sell their house, so 104 percent of the total expense. See how these other popular projects add up.
Putting in a nice extra bathroom nets you a 95 percent return on the money you spend.
Remodeling an existing bathroom does almost as well, earning you 89 percent of your money back.
Updating your kitchen with new paint, floors, and cabinets recoups and average 75 percent of its cost.
Turning existing extra space into something usable generally offers high returns. Finishing a basement into family living space will pay back 79 percent of its cost.
A few outdoor improvements pay off, too. Replacing old siding with new vinyl siding nets a whopping 98 percent return.
Choosing one of these remodeling projects doesn't guarantee a good return. Your neighborhood, climate, and housing market also affect what buyers are willing to pay for your home. Consider what's happening in the neighborhood around you, and decide how long you plan to live there. Extensive or expensive renovations may not pay for themselves if you only plan to live there a few years.
Just remember - increasing your home's value can be worthwhile, but in the end, your happiness matters more than the money you make.
© FCA Publishing
