Home Renovations That Pay

Most homeowners have a few projects on their mind that would improve either the look or function of their property. Renovations, however, are not something that most people go into lightly. While each household's needs are of course the first thing to consider, the added resale value of a property is another factor that can come into play when you're picking the project that's best for you.

Renovating to Increase Resale Value
If you've always wanted a basement family room or extra bathroom, and it will enhance your quality of life, then market value is likely not the key element in the decision to start remodeling. Factoring in resale value is especially important, however, when you're planning on selling a property. Studies suggest that most renovation projects do in fact increase the price of the home at resale, though the increase is typically less than the cost of the project. There are, however, some renovation projects that will not only beautify a property or make it more functional, but will also return more than the construction costs in additional market value!

Geographical Market Values
It's common knowledge that how much a house is worth will change depending on where in the country it is located. Many homeowners are also aware that when you do a certain kind of renovation, the amount of increased market value is different depending on what part of the country it is performed in. For example, installing vinyl siding might cost an average of $9,000 and recover nearly 90 percent of construction costs in added market value nationwide, but may only recoup 70 percent of construction costs in Pittsburgh, Pennsylvania. In Knoxville, Tennessee, however, vinyl siding replacement could recover well over 100 percent of construction costs in resale value (2006 figures show Knoxville vinyl siding replacement recovering over 150 percent on average). It is well worth the time and effort to do a little research on the recouped percent of construction costs a particular project brings in your specific area before you begin, especially if you're planning to sell in the near future.

Gain Resale Value with Modern Upgrades
It is said that nothing is more desirable to a prospective homebuyer than an older home with classic appeal that has been updated to contain everything you'd want for modern living. Real estate agents know that a gleaming kitchen with state-of-the-art appliances, cork or hardwood flooring, stone countertops, and lots of cupboard space can sell a house the instant a buyer sees it. Conversely, a cramped, ill-lit kitchen with outdated linoleum and harvest gold appliances might actually scare buyers away.

Bathrooms are another big draw. Both quantity and quality count. A house with two or three baths with quality fixtures and finishes will sell much faster than the same house with one bathroom with moldy grouting and ancient fixtures.

Low-Cost Resale Value Boosters
If you can't afford to renovate, update and refresh key rooms instead. Replacing an old countertop, repainting cupboards and walls, and installing new door pulls and lighting can make a big improvement in your kitchen for a very modest price. Similar touches increase the appeal of older bathrooms, too.

Fresh paint throughout your home is another low-cost, high-return project–it makes everything look cleaner and brighter, and buyers love a house they won't have to redecorate immediately.