Recouping Your Home Addition Investment

A home addition is a major investment for a homeowner. With money at stake, it pays to be smart and do your research before undertaking a large remodeling or home addition project. Start by researching your local real estate market to get the scoop on whether your project will return your investment when it is time to sell. The amount you will get in return depends greatly on where you live. Certain areas will get you 100% percent of the cost of the project back when you sell. By doing your research you will be able to find out what home addition investments recoup the most.

The best advice is to invest in a remodeling/home addition project when you are planning to stay in your home for awhile. Giving yourself a few years to enjoy your improved home is much better than doing it just to increase your resale value. This is true mainly because you can never be sure how much you will get back when you do resell. It makes the most sense 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, stick to minor remodels.

According to recent studies and across many real estate markets, kitchen and bathroom remodeling consistently offers the greatest return on your investment with percentages ranging from 80-100%. Basement, master suites and family room additions also offer a fairly high return. Remodels that convert unused space into functional living space, such as basements and attics, can vary widely from region to region. Deck additions also vary according to region, but in regions where outside activity can be enjoyed, deck additions usually return their full investment.

In addition to doing research in your local real estate market, you should also look around your neighborhood. Consistency among neighborhood homes is crucial to the overall environment and home buyers will notice if your house does not fit in. Any improvement you make to your home should be consistent with other homes on your block. 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. Making this investment will not provide the return you are hoping because the truth is that home buyers that can afford such a house will look for one in a more expensive neighborhood.

Furthermore, it is important to keep the original design of your house in mind when you attempt to add an addition. One way to do this is by using the same materials. By using the same materials or complementing ones, your home will remain tastefully appealing on the inside and out. It is never a good idea to go with bold, eccentric colors schemes if you are planning to resell your home. Remaining neutral and conservative gives the home buyer the creative freedom to integrate their own style without having to redo everything that has been done. Remaining neutral will benefit you when it comes time to sell.

Lastly, the best advice is to make the remodel that makes you the most happy, without having dollar signs in your mind the whole time. If you want a deck built or a basement remodeled, do so and enjoy every inch of it. The truth is that your return on investment can vary greatly depending on several factors so you can never really be sure what you are getting yourself into. It depends on the economy and the real estate market in your area, as well as other factors. Bottom line, it is better to do what is best for your living experience because your remodeling return could be more or less than you expect when it comes time to sell.