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HOW
TO ADD VALUE TO YOUR HOME
Not
all home improvements are the same! All of
them increase the pleasure you take in
your home, but some of them increase the
resale value more than others. According
to the National Association of the
Remodeling Industry (NARI): adding a
fireplace in your home can increase your
resale value by 160%. For example, a
$5,000 fireplace may add $8,000 to your
selling price.
Contrary
to popular belief, a swimming pool does
not hold water as a capital investment; an
average pool, costing $19,000, will only
add 33% or $6,500, to the value of your
home. In some areas a pool actually LOWERS
the value of the home, as many buyers
consider a pool as a safety problem and a
maintenance burden and expense according
to NARI.
A
new full bath does hold water, because you
get the luxury of an additional bathroom
while your home appreciates 125% of the
installation cost. Also, a green house
added to your home will blossom into an
added value of 100% of cost. Skylights and
kitchen renovations increase your resale
value by 95% of their costs.
HOME
OWNER MAGAZINE reports that a new roof not
only eliminates leaks, water damage, and
homeowner headaches, but also adds 12% of
its cost to the value of your home. Other
profitable improvements are attic or
basement conversions; returning 110%-125%
of costs. A new deck or patio returns 100%
of cost. Most other common improvements
return 69%-90% of their costs, for
example: new bedrooms, windows,
landscaping, and air
conditioning.
Energy
upgrading, including installation of
weather stripping adds 30%-50% of costs,
but also pays for itself over time through
reduced fuel bills.
All
these figures are based on installation
costs charged by professional, licensed
contractors. The do-it-yourself homeowner
can realize even higher percentages of
increased value. However, they risk
creating numerous safety hazards, to say
nothing of having costly code violations
when a potential buyer orders the standard
home inspection. Correcting or redoing
work always costs more than doing it right
the first time. Professional contractors
guarantee their work and services for
safety and conformity to code.
Regardless
of the amount, additions increase resale
value. Additions should be undertaken on
their merits. Ask yourself, "Will this
addition increase the quality of daily
life in my home?" After all, whatever you
do should be an IMPROVEMENT!
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