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Adding an addition to your home provides an array of enjoyable qualities. You may be expanding your living space with a room addition, a second story addition, a deck addition or even a bathroom addition. All of these additions can bring great satisfaction to you and your family. However, a home addition is a major investment for a homeowner so it pays to be smart and do your research before undertaking one of the biggest remodeling projects of your life.

It is a wise practice to start off by researching your local real estate market. The idea is to get the scoop on whether your project will return your investment when it is time to sell. Of course this is not always the main concern, but it never hurts to know whether you will be seeing some of your money coming back to you in the future. Usually the amount you will get in return depends greatly on where you live. By doing your research you will be able to find out where your region ranks and which home addition investments recoup the most.

Everyone has their own reason for wanting to invest in a home addition. Some people want to invest in a home addition because they are planning to sell the home and are looking to get all of their money back. However, this isn’t always such a great idea. The best advice is to invest in a home addition project when you are planning to stay in your home for awhile. This is true because you can never be sure how much you will get back when you do resell. It’s most sensible to invest in a remodel or home addition when you will be able to enjoy the benefits in the long run. If the primary goal is resell, you would be wise to just stick to minor remodels.

When deciding on what type of addition to invest in, homeowners are often looking to find out which type of addition will suit their home best and also bring in the best return on their investment. Below we have listed some important facts from recent real estate studies to help make your decision a little easier.

  • Kitchen and bathroom remodeling consistently offers the greatest return on your investment with percentages ranging from 80-100%. Home buyers look first for newly remodeled kitchens and bathrooms. They are a huge selling point.
  • Basement, master suites and family room additions offer a fairly high return. It will vary depending on the condition of the economy and the real estate market in your area, as well as what other related factors.
  • Remodels that convert unused space into functional living space, such as basements and attics, can vary widely from region to region.
  • Deck additions vary according to region, but in regions where outside activity can be enjoyed, deck additions usually return their full investment.
  • Consistency among neighborhood homes is crucial to the overall environment and home buyers will notice if your house does not fit in. For example, if you invest in an elaborate addition when your house is next to several modest homes, it will stick out like a sore thumb and turn away prospective home buyers.
  • It is important to keep the original design of your house in mind when you attempt to add an addition. By doing so, your home will remain tastefully appealing on the inside and out. Keep in mind, remaining neutral will benefit you when it comes time to sell.

Overall, the best advice is to add an addition or perform a remodel that makes you and your family most happy. If possible, try to keep dollar signs out of your mind because the truth is that your return on investment can vary greatly depending on several factors. You can never really be sure what you are getting yourself into because it depends so heavily on the economy and the real estate market in your area. Bottom line, it is just better to do what is best for your living experience because your remodeling return may not be what you expect when it comes time to sell.