According to an article in MoneySense dated 5/8/11, extra bathrooms and bedrooms may not be where the smart money is. Here is a list of some projects that, on average, provide the highest return...and some that don't.
Turning an attic into a bedroom will cost you just over $50,000, according to Remodeling Magazine, but you'll recoup just over 72%.
Spending just over $1200.00 you can replace your front door with a new steel door and get a 102% return.
Spending about $15,000.00 to replace all your windows and you'll see approximately $10,800 back in your pocket.
Replace existing cladding with vinyl siding at an average of roughly $12,000.00 and you'll recoup 72% .
Remodeling your basement at a whopping $65,000.00 will get you about 70% when you go to sell.
A second floor addition at an approximate cost of $165,000.00 will get you back about $107,000.00
Here are just a few of the projects that were not recommended if you are renovating for immediate sale, as they provide less resale value:
Sunroom additions average more that $74,000.00, and only recoup at about 48% (adding a back-up power generator has about the same return as a sunroom, but the installation cost is much less).
Remodeling a home office could cost you close to $30,000.00 , but only recoup about 45% of the costs.
And that additional bathroom- at the cost of about $40,000.00, only expect to get about 53% of your investment back.
Keep in mind that material and installation prices do vary by area- all costs used are averages.
Also from www.hgtvpro.com's Don Zemen- host of the home-improvement radio show Homefront with Don Zemen; A few of his top ten home improvement projects that can make life in a current home more enjoyable in the short term and pay big dividends for the homeowner time comes to sell:
Replace old, leaky windows with energy-efficient vinyl windows. Not only will new windows make the whole house look better, but Energy Star-compliant windows help save on heating and cooling bills all year long. For added safety and security, consider impact-resistant windows, such as SIMONTON StormBreaker Plus Models. Much like a car windshield, these laminated windows won't shatter if they're broken, thus reducing damage inside the home from storms or break in attempts. The clients may benefit from a discount on their insurance premiums, too.
Trim out exterior windows and doors. If there is old, rotting wood around doors (or no trim at all), suggest low maintenance all weather PVC millwork, which resists insects, rot and termites.
Bump out to a bay or bow window. Along with adding extra living space, bay and bow windows add instant visual interior and exterior value to homes. People value the extended space that can add room for a window seat, highlight a Christmas tree or simply bring more light into the home.