Back To The Family Handyman
From 
Del.icio.us
Digg
Reddit
Facebook
StumbleUpon
TwitThis
Q Our kitchen needs
remodeling, but we’re
not sure how much to spend.
We don’t want to lose money
when we sell. How can we
learn how far to go?
Michelle Swanson, via e-mail
A If you’re concerned about the future value of your remodeling investment, consult a local real estate agent or home appraiser. Home values are highly variable depending on your neighborhood, the regional market and the condition of your home. These individuals will use these local variables to estimate the market value of your home and tell you what upgrades will deliver the best return.
Another useful source is the annual Cost vs. Value Report on the Remodeling Magazine Web site (www.remodelingmagazine.com), which presents both the national picture and the regional breakdown for 22 major remodeling categories (kitchens, bathrooms, additions, windows, etc.). Generally it shows that bathroom and kitchen projects have strong paybacks (more than 90 percent), if kept in a mid-price range. The payback drops if the project includes major tear-outs or upscale cabinets, appliances and fixtures. Mid-range remodeling of “space expansion” areas like attics, basements and decks also scores above 90 percent payback. Additions, however, don’t fare so well. Family rooms, master suites and sunrooms score only about 80 percent return. In general, “lifestyle” improvements such as swimming pools, spas and exercise rooms don’t pay back very well either. But siding replacement scored high (fiber cement was 104 percent and vinyl 96 percent).
Check the regional breakdowns for these categories, however, because you’ll find wide variations. For example, a major kitchen remodel in Phoenix returns about 99 percent, but the return in Burlington, Vermont, is only about 46 percent. The value of other homes on your block matters too. An expensive remodel won’t deliver a high payback if it makes your home the most expensive one on the block. But a modest remodel that replaces an outdated kitchen, updates a grungy bathroom and upgrades a shabby exterior can pay off well.
Advertisement 
