What to Know Before You Remodel Your Home

If you own a home, chances are you've looked around and wanted to change a few things. Maybe your family has grown and it seems your space is too small. If you're tired of looking at the kitchen that looks like it was pulled out of the 1950's, maybe that's on your mind as well. The cost of remodeling is huge, so know where the best place is to spend your hard earned money. If you want to sell, there are a few remodeling projects that can help add dollars to your price, and quite a few that you won't earn a return out of.

Before you start on a remodel project, determine what it will cost. If you want to sell down the road, or if you're remodeling to sell, the best return will be in the kitchen and/or the bathroom.

A kitchen remodel can cost anywhere from $15,000 to an endless amount. Studies have shown that you can recoup anywhere from 97%-111% of the cost! A bathroom project will cost you less, but the return is also less. Anywhere from 61%-79%.

From there the costs and the returns will go down. Thinking of an attic bedroom? Plan on spending roughly $30,000 and receiving about 77% of the cost. A master suite, if done correctly can cost upwards of $70,000 and return 71%.

Adding space can cost a lot as well. If your family has grown and you want to add on another room, plan on big costs, and a lot of work. The return on that isn't necessarily guaranteed to bring you a lot of money if you plan on selling. A typical $50,000 family room addition can recoup about 74% of the cost. Finishing a family room in the basement, while cheaper at approximately $45,000 will only recoup about 54%.

Now these figures are based on higher income, higher real estate areas such as San Diego and Philadelphia. If you want more details on your area, you can find out more information here: http://www.remodeling.hw.net/content/CvsV/CostvsValue-project.asp?articleID=381305§ionID=173

If you're handy, or have friends that are, you can remodel a home or a room for considerably less. Just make sure you know what you're doing! There is nothing worse than seeing a "home made" remodel job in which the results turn out worse than they were in the beginning. If you're investing in your home, invest in someone who is good at what they do. Remember to pull out the proper permits as well, to save yourself from getting in trouble with your town.