Homeowners should be cautious in their selection of home improvements in terms of their ability to attract buyers and improve their homes’ value. In 2011, U.S. homeowners recouped 58 cents for each remodeling dollar spent, on average, compared with a 76% return on new projects in 2005. Of course, some projects do better than others. For instance, replacing a front door with a 20-gauge steel door not only increases “curb appeal,” but the improvement also returned an average 73% of its initial cost. A more ambitious project among the highest value-to-cost ratios in 2011 was the addition of an attic bedroom. This project, which returned an average 72.5% of its initial cost, rates high among families with multi-generational living arrangements.
HINT: When needed, a new roof not only increases curb appeal and allays buyer concerns about leaks, but sellers can also expect to recoup about 64% of its cost at the time of resale.
