Recoup Those Remodeling Dollars

If you've ever wondered how worthwhile it would be to replace the pink tiles and black sink and toilet in your bathroom, read on. Each year, the folks at RemodelingMagazine.com compare construction cost with resale value of common remodeling projects in 60 markets nationwide.

Note that these things do vary by region. Here's one telling example: A major kitchen remodeling will add about 99% of its cost to your home's value in Phoenix, but only 46% in Burlington, Vt. Yikes.

Without further ado, here are some average numbers for the nation. (Construction cost numbers include labor, material, subcontractors, and contractor overhead and profit.)

Interestingly, some remodeling jobs can reward you with more than their cost. As RemodelingMagazine.com explains, "This usually happens in markets where property values are rising very rapidly, but it can also occur when buyers regard certain types of remodeling projects as 'standard.' For example, in a neighborhood where most houses have two bathrooms, adding a bath to a home that has just one may increase the resale value of the home beyond the cost of construction."

The bottom line is that most remodeling jobs won't recoup all of their cost; don't undertake them just for their resale value. If you're going to spend $80,000 overhauling your kitchen with granite countertops, new cabinets, a fancy tile floor, and top-of-the-line appliances, understand that you might only get back $68,000 when you sell -- which may be years down the road. Until that time, make sure that you expect to get sufficient enjoyment and satisfaction from the remodeling.

If you're interested in homebuying and homeowning issues, visit our Home Center, which features lots of money-saving tips and even some special mortgage rates.

You might also want to check out these articles:

• 8 Tips for Dealing with Contractors
• Hire a Good Contractor
• 10 Contractor-Scam Warning Signs
• When and How to Hire Contractors
• 10 Home Enhancement Tips