Checking Your Remodeling Recoup Cost

by Mary Ann Romans | More from this Blogger

01 May 2008 04:05 PM

Do you ever wonder what upgrades to your home might add in terms of value? Even with a slumping housing market, you can still increase your home's resale value with the right renovation. As everyone knows, kitchen and bathrooms get the greatest recoup in investment overall, but some other numbers may surprise you.

Recoup value on projects can vary by region. This can make sense in some places, such as insulated windows in New England getting a greater recoup value, while not make sense in other places, such as upgrading an air conditioning system in Texas getting a small recoup value. Also, minor updates can sometimes recoup more value than major overhauls. Nationally, for example, just modernizing and updating your kitchen will get you more of a return on your investment than would a major kitchen remodel.

Any project that gains you more square footage generally has a high recoup value, especially when that square footage contains a new bedroom and bathroom. One family in my home state of Pennsylvania gained $178,000 in two years just by finishing off a basement. Because they provided the manual labor, the project only cost them $16,000. Isn't that amazing?

Siding replacement offers a pretty large gain on your investment across the country, so it is always a good idea to redo your siding if it is needed.

Additional outdoor living space, such as a wooden deck, can offer a high recoup value on your investment, provided that you have the backyard space to build such an addition. I have seen added value with wooden decks even when yard space was seriously compromised. This may go along with the current trend of the importance of bringing the indoors out and the outdoors in.

Among the lowest recoup values are projects around a home office remodel and the addition of a backup generator. Always remember, though that you have to balance the needs of your family with the needs for increased value in your home. if an improved home office allows you to make more money at home, it still might make a lot of sense to invest in that home office remodel. And as someone who has lived through a few power outages in our new home, having a back up generator can be wonderful, although I have to admit that we purchased a portable unit that can be taken with us if we move.

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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