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A: What's the payback for remodeling? Remodeling On-Line’s annual report compares construction cost with resale value for 25 common remodeling projects in 60 U.S. markets:

Cost vs. Value Report - Project % Cost Recouped
Attic Bedroom Remodel 79.90%
Basement Remodel 78.80%
Bathroom Addition 74.90%
Bathroom Remodel 84.90%
Deck Addition 76.80%
Family Room Addition 71.50%
Home Office Remodel 63.40%
Major Kitchen Remodel 80.40%
Master Suite Addition 72.60%
Minor Kitchen Remodel 85.20%
Roofing Replacement 73.90%
Siding Replacement (vinyl) 87.20%
Sunroom Addition 66.30%
Two-Story Addition 83.20%
Window Replacement (wood) 85.30%
Window Replacement (vinyl) 83.70%
Window Replacement (vinyl) 84.70%

Source: Remodeling Online/Hanley-Wood. Data represents national averages.

Remodeling and Increased Home Values

The Remodelers' Council, a part of the National Home Builders' Association, suggests remodeling projects that bring the value of your home up to the value of your neighbors' homes. A good rule of thumb is to keep the total of the value of your home before remodeling and the value of the remodeling projects to within 10 percent to 15 percent above median sales prices for a home in your neighborhood.

Avoid projects that make your home the most expensive in your neighborhood or different from the other homes, such as a large outdoor swimming pool.

Experts agree that kitchen and bath remodeling projects are the most likely to allow you to recoup their investments, possibly because homebuyers expect to spend a great deal of time in these areas of the house.

If increasing your home's value is a key priority, keep in mind that your keenest competition at resale will be new homes. So get a sense of what these buyers want by looking at the features and amenities found in new homes, such as great rooms and high ceilings.

Source: ARA Content