10 Ways To Increase The Value Of Your Home

In a dour housing market, wouldn't it be nice to know that your remodeling
project would pay off when you went to sell the property? Remodeling
Magazine evaluated the top remodeling projects, how the cost-to-value has
changed since the housing market implosion, and which projects are still
worth the investment. Using the magazine's "Cost Vs. Value Report for
2008-2009," let's look at some of the best projects you can undertake and
recoup the majority of your cost.

Upscale Projects
Siding Replacement (fiber-cement or foam-backed vinyl). With the economic slump, home buyers aren't being dazzled by bells and
whistles as much as they are improvements that will ensure lower repair and
utility bills. Although replacing current siding with fiber-cement has lost
value from 2007, it still nets an astonishing 87% ROI. If you prefer a
foam-backed vinyl product replacement instead, you can still look to recoup
80% of your cost.


Window Replacement (vinyl or wood) Windows are not only an aesthetic feature. For most homeowners, they
represent one of the easiest ways to lower home heating and cooling bills.
By replacing your current windows with more efficient vinyl or wood ones,
you can save on your utility bills, attract future home buyers and net a
nearly 80% (vinyl) or 77% (wood) return on your investment.

Bathroom Remodel Depending on the size and amenities of your desired bathroom, you could
expect to pay over $50,000 to tear out walls, repair joists and wall studs,
change structural elements and make major layout changes, such as switching
a toilet and shower. However big the price tag, you can still expect to
recoup nearly 71% of the cost (which would be $36,400 if you have a $50K
bill) when you go to sell. This project increased its value since 2007,
while its sister project - adding a complete bathroom - fell in value.


Major Kitchen Remodel Kitchens are typically the most frequently used room in a home, so it makes
sense that investing money here is going to pay off when it comes time to
sell. While a major kitchen renovation is usually the most time-consuming
and expensive home improvement job (averaging more than $110,000), it's also
one of the most profitable. Regardless of the size of your financial layout,
you can expect to get a nearly 71% ROI.

Deck Addition (composite product)
With families cutting their entertainment budgets, they're spending more
time at home, so it makes sense that adding a deck (composite, not wood) is
a good investment. You can plan on recouping 63% of your total job cost to
boost your home's value by nearly $24,000 if you paid the average job cost
of $37,000. Mid-Range Projects

While all of the mid-range projects dropped in value versus cost since 2007,
there are still numerous projects that will net you a significant ROI. Here
are a few of the best bets for your money:
Deck Addition (wood) If your bank balance can't swing the higher price tag that comes with
composite decking, you may still be able to afford a wood addition on to
your home. While a wood deck would cost you, on average, in the neighborhood
of $10,000, the resale value it will add to your home is more than $8,600 -
an 81.8% return on your investment.

Siding Replacement (vinyl)
Fiber-cement or foam-banked vinyl are often more preferable siding upgrades,
but getting vinyl siding replacements instead is still a good choice. You
can recoup nearly 81% of your cost which, if the job cost you more than
$10,000, means you could add more than $8,200 to your home's value.

Minor Kitchen Remodel
With belt-tightening in style, people are turning to minor kitchen
improvement projects instead of major overhauls. It turns out that that
choice is not only frugal, but financially wise. While major kitchen
remodeling jobs can still, on average, return a nice 70% ROI for homeowners,
minor kitchen remodeling jobs net an even higher 79.5% return.

Attic Bedroom Anytime you can add bedrooms, you're going to add to the overall value - and
listed purchase price - to your home. If your attic's dimensions allow you
to convert it to a bedroom, you may want to consider investing the money to
do so. You'll add some sleeping space and net a nice 74% return when a new
buyer puts your home under contract. Basement Remodel
If you're fortunate enough to live in an area with a water table high enough
to permit basements, you should think about squeezing all the value you can
out of it. By remodeling and finishing a previously-unfinished basement you
can expect to get nearly 73% of your investment returned with a higher list
price, come time to sell.

Conclusion
If you have savings or access to reasonably-priced credit, it's worth it to
consider home improvement projects that will produce the best return for
your time and money. Make sure you work with a reputable, licensed
contractor (to avoid costly errors or budget overruns), and before you
undertake any project it's a good idea to check and see if it could
significantly increase your property tax bill.
While it may still make sense in the long-run to undertake the project and
add overall value to your home, you may need to make a few budgetary changes
so that you don't get caught off-guard when the tax bill comes.  Katie Adams, Investopedia

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