Top Seven Home Improvements
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Source: Remodeling Online/Hanley-Wood *Data represent national averages of mid-range projects. |
Which home improvements give you the most bang for your buck, come selling time? The answer has to do with the term "ROI," or "Return on Investment."
In other words, what you will get out of what you put in. ROI is important because you want to recoup at least the same amount of money you put into your home when you sell it, or as close as possible. But it's not a simple equation to work out how to best maximize your payoff.
The Seven Best Home Improvements
According to Remodeling Online's 2006 survey of nearly 2,200 real estate professionals in 60 cities across the country, the home improvement with the highest return nationwide is a mid-range siding replacementl. Other top projects include replacing your windows with either wood or vinyl one, both major and minor kitchen renovations, a bathroom remodel and a two-story addition. See the box for specifics, but know these are nationally averaged prices and percentages.
Watch Out for "Over-Improving"
Before you start tackling that high-yield improvement, know that there's a chance you could "over-improve" your home. That might sound crazy, but it happens most often when the project just doesn't fit the neighborhood or the home's value. For example, if you own a $125,000 home in a neighborhood full of three-bedroom, two-bath homes, and you decide to add on another garage or another floor, you might never recoup the cost of that work.
Why? If the project costs you from $25,000 on up, then you'd have to sell your home for at least $150,000 or more just to break even. Are like homes in your neighborhood selling for that? If not, you're out of luck, because your expensively remodeled home might not fit in with the value of other homes in the surrounding area. Thus it may not be as valuable to potential buyers, since house prices are often ruled by location, and who's to say they might not inherit your
