by Angela Brown

Created on: October 28, 2008

Will Your Improvements Pay Off?

So you want to make improvements to your home. Great! But before you do, think about why. Are the improvements purely for your convenience? Are they things that you want, but not necessarily something that a future buyer would pay for? Will they add value to your home when it comes time to sell?

Some improvements that usually add value to your home include:

Sprucing up the kitchen. Complete remodels are great for higher-end homes. Replacing flooring, putting on a fresh coat of paint, replacing outdated cabinet hardware, and giving it all a good scrub may be all you need for a mid-range home. Either way, stick with a neutral, classic design and you'll probably get back most of what you put in when you sell. Kitchen improvements and remodels generally pack an 85% return on investment.

Updating the baths. Again, complete remodels in high-end homes usually pay for themselves when you sell. A fresh coat of paint, an intense scrubbing, cleaning or replacing dirty caulk, and changing out old flooring (even with inexpensive stick-down tile!) can really make a difference. Keep it neutral, classic and clean.

Adding square footage. No need to build or add on! Finish that old basement. Convert an attic to a bedroom suite. Add a great deck. Just make sure to keep the costs in line with similar homes in your neighborhood, and you'll see the returns when you sell.

Adding a bath. In my home, the previous owners converted a 6'x5' closet in a large bedroom to a cute bath. Perfect for my teenaged daughters! Since there were already two closets in the room, converting the third was the perfect way to add value! And they did it with an inexpensive pedestal sink, toilet, mirror, a fresh coat of paint, and laminate flooring.

Replacing old windows. Drafty and damp windows are not only a huge turn-off, they drain the energy efficiency of your home. Replacement ones not only look great, they keep your home more comfortable and your heating and cooling costs low. Stick with functional, energy efficient, classic styles. Once you get into custom styles and sizes, you're less likely to recoup your investment.

Don't expect a good return on investment if you:

Add a swimming pool. Figure in the cost of upkeep and the fear of liability, and most folks would rather not have one. A friend of mine paid thousands of dollars to have her custom pool filled in because she didn't want the hassle!

Spend thousands on landscaping and gardens. Again, most folks perceive intricate landscaping as something they'll have to spend money tending to later. A neat lawn and some inexpensive plantings are all you need for great curb appeal.

So whether you're adding a small deck to the side yard or completely gutting the kitchen, taking the time to really think about and plan your project before you break ground means you're more likely to see good returns when it's time to sell.

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