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Real Estate Markets • Remodeling For Resale • Location Factor

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Are you ready to do some home remodeling?  Before you choose a project to work on, you should stop to consider your home's eventual resale value.  Which remodeling projects will give you the best return on your investment?  See which home improvements offer the biggest returns and are the best and worst choices financially, according to Forbes magazine.

Simply sprucing up your house makes a huge difference when it comes time to sell — a fresh coat of paint, clean carpets, and weed-free planting beds can make a world of difference.  For bigger projects, focus on your kitchen and bathroom first.  You will generally recover about 80% of the cost of a kitchen remodel and 90% of what you spend for a bathroom renovation.

fresh house paint The most popular minor improvements in the kitchen include adding extra sinks and cooking stations as well as cosmetic improvements such as under-cabinet lighting and new countertops and backsplashes.  Granite and marble are very popular and durable countertop choices.  Popular renovations in bathrooms include skylights, whirlpool tubs, large walk-in showers, glass block windows, and vaulted ceilings.  Cosmetic renovations that also return up to 70-80% of your investment include new siding and windows.

siding and windows - before and after What renovations don't pay for themselves at resale time?  Well, that partly depends on your part of the country.  For example, homeowners in the sunny south often recover up to 95% of the cost of a new sunroom, while homeowners in the north recover far less.  One addition that rarely pays for itself is a swimming pool.  If you want to do these types of renovations for yourself, go ahead — but don't expect them to raise the value of your house.

couple renovating their home As you update your house, keep the overall neighborhood in mind.  Most buyers look for a house that's surrounded by homes of equal or greater value.  Choose your updates carefully so you stay within your neighborhood's average price range.  Do you want to know what homes in your neighborhood are worth?  Type an address on Zillow for a quick estimate.

If you plan to renovate or repair your home before putting it on the market, it is important to select your home remodeling contractor carefully.  Use a qualified contractor and get the job done right!  For more information about choosing the best remodeling projects for resale, see the 2015 Cost vs. Value Report that compares the cost of construction to the likely return on investment (ROI) at resale.


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Cost Effective Home Remodeling Projects