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Home Improvements that Add Value To Your House

There are two ways to go about making home improvements. Either you splurge for something purely for the pleasure of having it — the new slate bathroom you've dreamed about; that modern kitchen that your spouse has been hinting at for the last six years — or you take a pragmatic approach, buying an energy-efficient furnace or repairing a leaky roof because you want to increase your home's market value.

Don't expect to score on both counts. Just because you pour $30,000 into your home doesn't mean that your house is worth $30,000 more. Exactly how much you'll recoup in costs depends on several factors, including the direction of the general housing market, the value of the homes in your area, the time of year you plan to sell the home and the type of the project itself. And keep in mind that the longer you hold on to your home after a remodeling project is completed, the less likely you are to recoup its value. That's in part because design tastes can shift significantly over time. Remember when avocado green was all the rage? This section examines a few improvements that pay off more often than not — and some that rarely make a difference when it comes time to sell your home. Kitchens Even a few basic improvements to your kitchen can increase the value of your home. For most buyers, the kitchen is the heart of the house. Paint, wallpaper, and even refloor the room if necessary. Consider sanding, staining or painting dingy-looking cabinets. Replace old cabinet hardware — a low-cost improvement that makes a big difference in appearance. Just be sure to go with a classic design and, if possible, use high quality materials. After all, good taste endures. A midrange kitchen overhaul can average a return of between 75% and 80% of its value. Creating New Space As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. It's also significantly cheaper than adding an addition to your home. Converting an attic into a bedroom, for example, can add extra space and value to your home. An Extra Bathroom Adding an extra bathroom with all the trimmings — marble vanity top, molded sink, bathtub with shower and ceramic tile — almost pays for itself. A midrange full-bath remodeling job generally recoups 75% of its cost. Decks Installing a deck may be the most cost-efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Deck additions recoup 77% of their value. That may not sound terribly impressive, but other touted outdoor improvements fare much worse. Back to the top New Windows The savings on your utility bill might make up for the spotty resale value. Replacing 10 three-by-five-foot windows with insulated wood replacement windows typically costs $9,416 and recovers more than 85% of its costs at resale. A good window arrangement, as long as they're standard, will make money back. But, as soon as you get into customizing, with fancy shapes, bays and bows you can't see from the street, you're throwing money down the drain. Swimming Pools It's commonly agreed that a swimming pool has no resale value at all. "I've had clients spend $300,000 and fill in the pool," says one agent. The main reason pools repel more prospective buyers than they attract is that they require expensive upkeep. Running a close second is the fear of liability: Pool accidents are a quick way to end up the subject of a negligence suit. A lot of people don't want the responsibility. Back to the top Manicured Gardens Fancy gardens — which will require time and money to tend — usually won't add to the offering price. Landscaping is for your own enjoyment," says a local agent. "It may be a $40,000 investment, but there's no way it'll add $40,000 to the value of your house." The same goes for expensive fences and stone walls. They look nice, but buyers don't pay up for them. Basic Improvements It may not be all that enjoyable, but it's the basic improvements that may have the greatest return on your home's value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem," says a local agent. So if you're thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the home's structure or mechanical systems before you, say, install that hot tub you've always dreamed of.

This series of articles is brought to you by A. Mark Argentino and other real estate related resources, including Canadian Real Estate Association CREA and the Ontario Real Estate Association OREA. Back to list of Real Estate Helpful Articles

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