When does remodeling make sense?

Many of today's homeowners are choosing to stay in their homes for a few more years rather than try to sell in a slower market. Quite a few of those homeowners are considering remodeling their current home with two goals in mind: make the home more accommodating for the next few years and add value that will be recouped when they do sell down the road. An extensive survey from Remodeling Magazine offers some insight as to which remodeling projects reap the most reward in resale value.

The survey is broken down regionally so, for our purposes I will look at the East North Central region where Chicago sits.

Here are some of the most common additions in a mid-range price, along with the percentage of cost recouped in a resale of the home:

Bathroom 68.2%
Deck (wood) 85.6
2nd story 78.3

As for remodeling, here is how some of the most popular projects recouped their expenses:

Bathroom 80.9%
Major Kitchen 79.3
Minor Kitchen 82.7
Basement 80.9

And finally, here are some numbers for replacement projects:
New Roof 61.9%
Siding 85.5
Windows 77.8

The old adage is that home buyers look at "kitchens and bathrooms." This evidence suggests that the cost of updating these rooms tends to be money well spent. Of course, each situation is different and professional consultation is highly recommended. If you have questions about a remodeling project you are considering and how it will affect your home's value, don't hesitate to contact me.