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Home Sellers, Put Down Your Toolbelts!
If you're planning on selling your home soon, put down the tool belt and forget the big renos. If you're going to sell within a year, the annual Cost vs.Value report says most renovations are just not worth it. The report, published by Remodeling Magazine in November 2007, compares the estimated costs of 29 major renovation projects with the estimated boost they'll give to the home's resale value in 60 markets across the county.

From modest deck additions to pricey two-storey add-ons, the report finds a national average of just 72% immediate return on investment for all renovations. Whether it's a finished basement, kitchen upgrade or new master suite has little effect on the numbers. It also doesn't seem to matter if you approach your project with the best materials money can buy or plain and practical. Either way, the projected profits still fall an average of 28% below cost when it comes time to sell.

Of course, there are plenty of regional differences that give rise to a few exceptions. Putting a new 16 x 20 wood deck on your San Francisco home for instance, can set you back about $12,812 but increase your resale value by $13,836. That's a cool profit of $1,024.

It's also important to keep in mind that numbers like this never tell the whole story. Material costs will vary as will style and quality of workmanship. The type of neighborhood you live in, the desirability of the market as well as the available housing in the surrounding area will also play a part in the resulting profit margin for any reno. So if you have a strong gut

 

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