Because of good
home sales, a resurgence of consumer confidence, and low interest rates, the
home-improvement industry is booming. "USA Today" reports that the dollar value
of remodeling will surge to about $117 billion -- 8% over last year's level.
Before selling a house, it's frequently a good idea to do some simple
fix-ups on it, such as painting and installing new carpet. But people who have
just bought homes will sometimes do a lot of heavy remodeling to bring the home
up to more modern standards. That can be profitable. In addition to having the
enjoyment of living in the upgraded home, these owners can often recoup much of
the cost of remodeling when the house is sold. The chart below shows how much
various improvements can bring. And, as costs increase over the years, the
improvements will increase in value too!
|
Projects with the highest return |
||
|---|---|---|
| Average cost | % of cost recouped | |
| Upgrade Kitchen | $6,368 |
101% |
| Revamp Kitchen | $20,078 |
93% |
| Upgrade bathroom | $6,269 | 85% |
| Add bathroom | $11,441 | 92% |
| Add family room | $28,736 | 86% |
| Add master bedroom suite | $19,210 | 85% |
| Add sun room | $21,998 | 71% |
| Re-side exterior | $8,592 | 67% |
| Source: National Association of the Remodeling Industry | ||