Returns on House Remodel Projects

Kitchens

• Whether you go big or small, you can typically recoup most of the cost of a kitchen remodel. According to Realtor Magazine, homeowners typically get back approximately 76 to 79 percent of what they pay on a kitchen remodel. The higher return is actually on more minor remodeling, like new countertops, than larger projects. Keep the potential buyer in mind as you remodel, and stay away from bold or bright colors in items that aren't easily changed.

Bathrooms

• According to Realty Times and the National Association of Realtors' National Center for Real Estate Research, adding an extra bathroom to your home can increase your home value by up to 24 percent, depending on the size of the bathroom and the amenities involved. If you don't have room to add a whole bath, remodel an out-of-date bathroom. You'll typically get about 75 percent of what you spend back, according to Realtor Magazine.

Additions

• Adding an addition to your home can increase your home's value and space, but ensure the addition is logical for the space and neighborhood. Adding a second story in a neighborhood of small one-story homes may not give you the return you want. Add items you know others want, like a garage or an upstairs laundry room. A garage typically adds about 12.9 percent to your home's value, and an upstairs laundry room can raise the market value as much as 15 percent.

Remodels to Avoid

• Although remodeling tends to add value to your house, not all remodeling projects are equal in the eyes of buyers. If you're looking to add value to your home, don't create special rooms unless they'll appeal to a lot of people. For instance, a gardening shed is a good idea if you have a large garden on your property, but a recording studio will only appeal to other musicians. If you remodel a room into a home office, make certain you can sell it as a bedroom too. Homeowners who remodel or create home offices typically only recoup about 55 percent of what they spent, according to Realtor magazine.