How to Add Value to Your Home
Not all home improvements add the same resale value to your home. Some of them increase resale value greatly while others do not. Of course the enjoyment you receive from home improvements may be more important to you then increasing resale value.
Adding a fireplace to your home may increase the resale value by 160%. A swimming pool costing $20,000 will only add 33%, $6,700 to the value of your home. most homeowners consider pools as safety problems and maintenance burdens.
A new full bath will increase the resale value of your home by 125% to 130% of its cost. A greenhouse added to your home will increase value by 100% of costs. Skylights and kitchen renovations increase your resale value 95% of their costs.
A new roof not only eliminates leaks, water damage and home owner headaches, but it also adds 120% of its cost to the value of your home. Other profitable improvements are attic or basement conversions, which return 100% - 125% of costs. A new deck or patio returns 100% of costs. Most other improvements return from 60-90% of their costs, for example, new bedrooms, window, landscaping, air conditioning.
Insulation & energy upgrading adds 30-50% of costs, but pays for itself through reduced fuel bills.
All of these figures are based upon installation costs charged by professional licensed contractors. The do-it-yourself home owner can realize even higher percentages of increased resale value; however, they risk creating safety hazards and building code violations when a prospective buyer orders a home inspection. Correcting work always cost more than doing it properly the first time. Licensed professional contractors warrant their work for safety and code conformity.
Regardless of the investment, room additions increase resale value, but they should be undertaken to improve the liveability of the property. They should be an improvement. Ask yourself, "Will this addition improve the quality of daily life in my home?" If the answer is yes, then this addition will also increase the resale value.