NWHomePro Advice Center

The Best Remodeling Projects

For people who are thinking about selling their homes soon, few big remodeling projects would ever make up the money spent for labor and materials. There are a variety of small cosmetic fixes that many homes need, but most such repairs are relatively inexpensive and don't require a great deal of effort.

On the other hand, homeowners not planning to move soon, and who want to build on the long-term potential of their investment, can increase both the comfort and the value of their home with a variety of attractive renovation projects. The key to maximizing return is to select projects carefully.

Some projects are likely to provide greater return than others. Projects such as major kitchen remodels, finishing an unfinished basement, or adding a skylight are not likely to yield as much as such things as adding on a room, remodeling a bathroom, or installing an energy-efficient woodstove or fireplace.

The most productive remodeling projects are listed below along with estimates of amounts owners could expect to recapture for each project. Keep in mind that these estimates are just that, and they assume sale of the residence within a relatively short period after completion of the remodeling by a professional contractor. The longer a property is held, within certain limits, the greater the remodeling cost that will be recaptured.

In order to ensure the best odds of success in getting back more remodeling dollars, it's important to remember some basic guidelines, probably the most important of which is to make sure that the upgraded property does not exceed the value of its neighbors by more than 20 percent. In terms of resale value, it's far better to own the worst house in an expensive neighborhood than to own the best house in a cheap neighborhood. Buyers will judge your property according to the value of the properties around it.

Next, keep in mind that whatever the project, it is important that the improvement precisely match its surroundings. Additions, especially, must look like they were always there, otherwise they are likely to detract from a home's value rather than accentuate it. It's fine for homeowners to do the work themselves, as long as they have the knowledge and ability to do a professional-quality job. Anything that's not professionally done will reduce, rather than enhance, a home's value.

Lastly, homeowners should use materials that are likely to appeal to the widest audience and that are of at least moderate quality. Cheap materials look cheap, and they don't last. Colors and styles that are trendy or unusual will tend to lessen the value of the improvement. They will likely have fallen out of favor once it comes time to sell, and buyers will look at them as things they have to update rather than as neat bonuses that are nice to have.

PROJECT	COST RECOVERY	HELPFUL HINTS
Bathroom Addition	75 - 100%	Adding a second full bath will allow greater recovery than addition of a third or fourth bathroom. Remember to use neutral colors to have the widest appeal.
Woodstove or Fireplace	75 - 100%	Many buyers will pay extra for a fireplace, especially one that burns wood. However, a woodburning stove or fireplace generally will cost a little more, require more maintenance, and not be as energy-efficient as one that is gas-burning.
Room Addition	70 - 90%	Keep in mind that adding a third bedroom will provide more value than fourth or subsequent bedrooms. Other good candidates for room additions are a family room and an extra bedroom on the main floor of a multi-level house where all other bedrooms are on another floor.
Bathroom Remodel	60 - 80%	Location should dictate how much to spend. Spending a lot on a master bath makes more sense than doing so on a guest bath. If remodeling an only bath, try to make the space more flexible by adding extra fixtures and, if possible, an extra door.
Kitchen Remodel	60 - 80%	If fixing up the kitchen to re-sell soon, avoid costly extras like top-of-the-line appliances and custom counters.
Deck	65 - 75%	Summertime is outdoor time, and Oregonians love decks. The larger and more complex a deck's design, the more value it will return.
Garage	40 - 60%	Many rural homes have no garages, but most buyers think them a necessity. Adding a 2-car garage to a house with no garage will return the most. Expanding a garage of 2-car size or larger will return the least.
Exterior Painting	40 - 50%	One of the easiest projects for the do-it-yourselfer, painting can really enhance a buyer's first impression of a property. The key to success is adequate preparation (stripping, sanding, filling holes) of the surface to be painted.
Windows & Doors	25 - 45%	Cost recovery is relatively low because buyers expect windows and doors in good condition. New windows or doors that make a big change, such as replacing a picture window with a bay window, will recover more cost.