The 10 most Valuable Home Improvements

Maybe you've been feeling the need for more space, less space or just different space.  You've been wondering- which solution will give me what I want with the least financial hit?  You need to plan with an eye on the potential resale value.  Ideally in resale you'll be able to regain the money you put into a remodel.  Some projects, moreso than others.

A survey by Remodeling Magazine and National Association of Realtors pulled data together from 60 cities to complete an annual cost-versus-value home improvement survey.  This list comes from that information and is based strictly on the percentage of the cost recouped at resale.  A minor facelift would include things such as replacing faucets, adding new flooring, new wallpaper or tile, new towel bar and toilet paper holder, maybe new doors for the shower.  Midrange remodeling adds new vanities and countertops, mirrors, medicine chest and maybe pulling the toilet and doing a new tub surround.  A midrange addition involves building a new bathroom with moderately priced fixtures, such as solid-surface countertop with built-in sink as opposed to a custom ordered sink.

Improvement #1:  Upscale Siding Replacement.  cost- $13,1777  adds $11,424 to your home's value, or 86.7% of the cost
Improvement #2:  Adding a Wooden Deck.  cost- $10,601  adds $8,676 to your home's value, or 81.8% of the cost
Improvement #3:  Minor Kitchen Remodeling.  cost- $21,246  adds $16,881 to your home's value, or 79.5% of the cost.
Improvement #4:  Replacing Windows.  cost- $11,512 and adds $8,946 in value, 77.7% of the cost.
Improvement #5:  Midrange Bathroom Remodeling.   cost- $15,899 and adds $11,857 in value, 74.6% of the cost. 
Improvement #6:  Renovating an Attic into a Bedroom.  cost- $48,398 and adds $35,694 in value, 73.8% of the cost.
Improvement #7:  Finishing a Basement.  cost- $61,011 and adds $44,467 in value, 72.9% of the cost.
Improvement #8:  Adding a Second Story.  cost- $146,538 and adds $103,553 in value, 70.7% of the cost.
Improvement #9:  Adding a Garage.  cost- $57,272 and adds $38,161 in value, 66.6% of the cost.
Improvement #10:  Adding an Upscale Bathroom.  cost- $74,345 and adds $49,100 in value, 66.1% of the cost.

If the prices seem a little more than you expected, there are several reasons:
Averaging can skew costs higher than taking the mean of all costs.  These prices include professional labor (which is usually about 30% of the cost), and there are significant regional variations in home values, materials and labor costs.  The best thing to do is to create a budget, compare prices, get estimates and do your homework well in advance of starting the project!

The average return on home improvements slumped to 67.3% last year.  That means every dollar spent improving a home boosted its value by 67.3 cents.  That's down from 76.1% in 2006 and 70% in 2007.  So if the goal of your project is to increase the value of your home for resale, your project needs to reflect the neighborhood.  It's completely within the realm of possibility to spend six figures on a kitchen renovation, but unless you live in a neighborhood of million-dollar houses, you'll want to scale things down.  The same goes with bedroom and bathroom counts.  If your neighborhood is mostly three-bedroom, two-bath houses and your house has only one bathroom, you're at a serious disadvantage on the resale market.  Adding a bathroom would make a big difference. 
However, if you have every intention of living in this home for the rest of your life, then put in the theatre room and the multi level deck with hot tub and pool.  Some decisions are made with the heart as much as the head.  It's your home, your money and your life.  So enjoy it!

If you have a friend or family member that is interested in buying or selling a home, I would love to speak with them!  I'm never too busy for your referrals!!