Some remodeling projects will add to the value of your home, but some won't. For example, on kitchen projects and bathroom additions, you can get back up to 90 percent or more of the cost. However, finishing a basement usually pays back less than 50 percent.
Home Advisor at MSN.com has a chart of costs and average paybacks for typical home improvement projects. For example, adding a new heating or A/C system can cost between $2,000 and $4,500 with an average payback of 100 % for heating and 75% for A/C. On the contrary, building a pool can cost $10,000 and up with an average payback of 44%.
The local real estate market and current property values are what determine if your remodeling project will increase the value of your home. If the market is slow, you will see less of a payback than you would in a fast market. Also, if you remodel your home until it's twice as big as the other homes on the block, it won't necessarily double in value.
The price of home improvements fluctuates depending on economic conditions and region. If remodeling costs are particularly high, or home sales particularly low, you may not recover as much of your investment as you would if costs were proportionate with sales prices.
The following web sites might be helpful re home improvements:
Improve Net gives design ideas and helps you plan your project.
Michigan State University Extension offers topics re home nmaintenance.
The Federal Trade Commission has advice on how to find a contractor.
The Department of Housing and Urban Development offers tips on financing.
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