What remodeling projects will add the most value to my home?

Many people ask us this question, and the truth is, it all depends.  For example, studies are done on a yearly basis and published in magazines (like the 2006 Remodeling Magazine Article cited on the right) saying if you have a home appraisal done before the work is completed and immediately after the work is completed, how much will your home increase in dollar value.  This is what is meant when the article says you will get back, say for example, 83% of your project price.

For example:

Your home before your siding project is complete appraises for $180,000.00.

The day after the siding project is complete the same home appraises for $200,000.00.

The siding project costs you $22,000.00.

$200,000.00 - $180,000.00 = $20,000.00 increase in home value.

$20,000.00 / $22,000.00 = 0.909 or 91%

Therefore, you have recouped 91% of the cost of your siding project the day after it is complete.

Keep in mind though, there are many other important issues to consider:

1.  National studies show a national average, and don't necessarily represent the same characteristics of our particular area. 

2.  Very few people are going to remodel the home they live in and then try to sell it the next day.  Long term appreciation of a home may warrant doing a project that may not be top on the studies list.

3.  Studies from realtors show the average person looking at buying your home will make up their mind in about 3 seconds as to whether they will even consider purchasing it.  Studies also show the main reason why people walk into a home for sale is to predominantly reinforce the first 3 second conclusion they arrived at.  This means when they drive up to the home, the average buyer is going to decide in about 3 seconds whether or not your home is even a "maybe."  This may warrant more concern for the exterior appearance.

4.  Your home's livability is extremely important.  Even though you may not like the color of your roof, if the only reasonable entrance into your home is through the laundry room and the kids playroom, you might want to deal with this issue first.

5.  Your home in comparison to the other homes on your block and what those homes have to offer.

6.  The people moving into your area.

7.  What you want short term and long term for you and your family.

Please click here to see the full 2006 Remodeler Cost vs. Value Report!