Compass Mortgage - What Home Improvements are Also Investments?

Home Improvements That Pay You Back

More than 30 percent of American homeowners will plan some kind of remodeling or home improvement within the next two years.

If you're one of them, think through your plans carefully with respect to current market conditions and mainstream tastes. Remember, not every dollar spent on improvements will increase the value of your home an equal amount. You may recoup only a fraction of your investment when it comes time to sell.

Type of improvement or renovation	Percentage recouped	Comments
Addition	100%	An extra room (or two) can increase the value of your home equal to the cost of the improvement.
Garage	75%	In the Northeast, a garage is a valuable feature. But don't go overboard on architectural style, unless it can be done cost-effectively.
New doors and windows	35%	Buyers can appreciate changes that improve the look of a home and improve energy efficiency.
Insulation	20%	It doesn't cost much, but despite its worthiness, it doesn't always translate into recouped dollars.
Skylight	Varies	It's hard to estimate how this improvement may affect profit upon sales. Consider how it will improve an unattractive area such as an attic or otherwise dark hallway.
Swimming pool	Varies	Don't expect a pool to increase the value of a home in New Hampshire. Some buyers may find it appealing, but other will factor in the cost of removing it with a reduced offer.

Before making major improvements to your home, talk to a real estate professional. Doing a little bit of research could spare you expensive mistakes if your home improvement plans are flawed. Also, you may be better off selling your current home and buying without all the trouble.

For questions on financing home improvements, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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