There are a number of considerations that should be factored in when determining the potential value added upon completion of a project, and whether it is an appropriate decision for you.  Improvements that are in high demand, such as an upgraded kitchen, are usually a safe bet.  Or, adding a second bathroom in a home where homes in that neighborhood have two bathrooms, would also be a good idea.  On the other hand, if you build a large addition to a home that sits in a neighborhood dominated by small houses, you could be over-building for the area and suffer significant losses.       

Also, when contemplating a home improvement project in a home that you will likely be selling in the future, be sure to stay away from highly customized fixtures or layouts.  Try to always make changes that will be suitable, and appreciated, by the greatest number of potential buyers.  This will help with gaining the highest return on investment, as well as limiting the time the house will be on the market once you decide to sell.

Finally, the cost of the improvement must be factored in.  Doing the work yourself will save a significant amount of money, and ultimately add to your overall return on investment. 

The list below is compiled from several published surveys and shows the typical return on investment for some popular remodeling projects:

•   Kitchen remodel - 90%
•   Bathroom addition - 90%
•   Bathroom remodel - 80%
•   Install central heat - 90%
•   Install central air - 75%
•   Deck installation - 70%
•   Replace windows - 70%
•   Room addition - 55%
•   Pool - 45%
•   Finished basement - 40%

For your convenience, we have included links to various sites that can assist you in your decision process, and get you on your way to completing that "To-Do" list.  

Going Green

Do-It-Yourself