Home Improvements That Repay The Investment

By administrator On January 16th, 2009

There are mainly two reasons for undertaking a home improvement job – to sell your home or to make your lifestyle more comfortable. If you are planning to sell your home you need to be sure about the remodels that will enable you to get maximum returns. There’s no point in sinking money into a remodel project that does not offer value to prospective buyers.
It’s common knowledge that kitchen and bathroom remodels cost a lot of money but at the same time it is these remodels that will recoup maximum costs when the house is sold. Even minor remodels to a kitchen where only cabinet doors and door handles are changed can add to the value of a kitchen.
The returns for a remodel depend upon your locality, area, and the house you stay in. For example if it’s a small house, a room addition such as a bedroom can really help in boosting your houses’ sale value. A bedroom addition to a small house will repay more than 100% of its cost. Adding a second storey also scores nicely in the “cost vs. value” evaluation. It will recoup around 83% of its cost at the time of selling.

Basement, garage, and attic remodels do not score heavily in terms of cost recovery. Home owners do not benefit much by converting their garage into a bedroom. The average cost recovery for these remodels is in the range of 62% – 72%. In fact you might actually have a hard time trying to sell a home with a garage converted into a bedroom.

If you convert some space into a home office and then while selling it you land a buyer who’s a work-at-home type guy like you then you’ve really hit paydirt because a home office remodel is tax deductible, your earnings while working from home will pay for it, and when the time comes to sell the house, you will once make money from the sale.

So, decide upon what you wish to remodel, do not spend on amenities that offer peripheral value. The amount you recoup will also depend upon the prevalent market conditions and how soon after the remodel you sell your home.

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