Remodeling Your New Home: The Top Ten Projects
From Moving.com
Tempted to add a deck or remodel the kitchen? Which project will add the most value to your home? The experts say it all depends on how you answer two other questions:
1) How long do you plan to remain in your home?
2) How much quality will you put into the remodeling job?

If you'll be moving within eight to ten years or less, then you should think about which remodeling will give you the best resale price. See the table below to get started. Don't be surprised if less is more. You could get a higher return from a minor kitchen remodel, for example, than from a major kitchen remodel.

On the other hand, if you plan to live in your home for a decade or more, then other key factors -- the economy, your neighborhood, and changing home styles -- will ordinarily make your remodeling efforts a secondary consideration in home price. In that case, you should choose your remodeling projects based on which improvements will bring the most improved quality of life, and worry less about recouping your investment.

Whether you're remodeling for short term gain or long term satisfaction, however, you must face the second big question: how well was your job done? Not all remodels are created equal, and visible shortcomings (sloppy cabinetry work, uneven flooring, etc.) can have a big impact on resale value. A surprising number of homeowners report dissatisfaction with their remodeling results, which unfortunately can vary as widely in quality as the contractors who do them. Yet finding reliable contractors is notoriously difficult. The Internet can help here. The good news is that, despite what you might have heard, it does not cost you more to hire a competent contractor than a shady one. In the long run, it's your best bet.

Top 10 remodeling projects with the national average cost, re-sale and cost recouped percentage.

Rank Project Cost %Recouped
#1 Minor Kitchen Remodel $8,379 102%
#2 Bathroom Addition 11,721 92%
#3 Major Kitchen Remodel 22,509 90%
#4 Master Suite 37,388 87%
#5 Two-Story Addition 56,189 87%
#6 Attic Bedroom 23,002 86%
#7 Family Room Addition 32,558 86%
#8 Bathroom Remodel 8,563 77%
#9 Deck Addition 5,927 73%
#10 Replace Siding 5,099 71%
Source: Remodeling Magazine study 1997-1998