Top 10 Home Updates That Pay Off : HGTV FrontDoor Real Estate

Wondering if you'll be able to recoup the cost of your next home remodeling project? It's tough to know in today's market.

With uncertainty ruling real estate, it's not surprising that seven of the top 10 projects in the 2009-2010 Remodeling Magazine Cost vs. Value Report are exterior upgrades. About 4,000 real estate agents and home appraisers were surveyed for the report.

It makes sense. With so many houses for sale, a fabulous exterior is exactly what a home seller needs to lure in potential buyers.

Find out what 10 projects have the best return based on their cost and the value they add to your home.

Update #1: Start with your front door >>

Value of Remodeling Projects Down

Overall, the average value of home improvement projects declined for the 33 projects in 80 cities that the magazine condenses into a single number for the Cost vs. Value report.

"That one cost-to-value ratio number has been dropping since 2005," says Sal Alfano, editorial director of Remodeling Magazine. "The rate of decline has slowed, which is a good thing, but this is such an odd year that the data is hard to interpret. Take the results with a grain of salt because of the unusual market this year."

Projects found at the bottom of the list include home offices (48 percent return) and sunroom additions (51 percent return). What do they have in common? Both are expensive and don't have broad appeal.

Sunrooms aren't used as much as kitchens or bedrooms. And, while a home office is great if you work from home, it won't add value when you sell, especially if you took away a fourth bedroom to create your workspace.

Check Local Figures Too

Along with its national figures, Cost vs. Value also offers complete regional and city data, which can be downloaded for free at www.costvsvalue.com. However, even the local information should be used carefully.

The survey, Alfano says, provides a baseline estimate of value, not a guarantee that you'll actually recoup any particular value for an individual remodeling project.

"None of it should be taken literally by a homeowner," he warns. "The fact is that they're averages and hypothetical and the areas we survey cover MSAs [Metropolitan Statistical Areas] that are huge and you have neighborhoods where prices fluctuate."

The best way to use to data is as a measuring stick. Decide whether you're in an upscale or mid-range neighborhood and then use the average local prices to make sure the price you expect to pay for your next project is reasonable.

See the Top 10 Home Updates That Pay Off >>

Copyright 2009 Hanley Wood, LLC. Reproduced by permission. Complete regional and city data from the Remodeling 2009 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.

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