How to Add Value With an Addition to Your Home

Determining how to add value to your home

Although a large-scale addition to your home may seem like an impressive and foolproof way to add value and attract a good price from buyers, smaller additions and improvements are usually a better choice. Homeowners need to weigh their decisions carefully. An addition pricing a home above the neighborhood's average can hurt the seller's profit, and smaller improvements increasing curb appeal can boost value quickly and easily.

Things You'll Need

• Shrubs
• Plants
• Kitchen fixtures
• Bathroom fixtures

Instructions

1. 

   A new entry door is a valuable addition to your home.

   Consider the average amount of money recouped from home additions when choosing your own project. According to Remodeling Magazine's annual report on cost versus value of various mid-range remodeling projects, a new steel entry door tops the list of money recouped with 128.9 percent. Rounding out the top five are: adding an attic bedroom, adding a deck, replacing vinyl siding and doing a minor kitchen remodel.

2. Decide how your addition could improve your quality of life while still living in your home versus how much value you hope to add when you sell it. The cost of projects might be more palatable if you plan to stay in your home to enjoy it, considering that many additions and remodeling projects recoup less than 80 percent of the cost.

3. 

   Adding a manicured front garden can boost home value.

   Focus your money and attention on simple improvements to your home if adding value is your top priority. Add well-manicured shrubs and plants to the front of your home, keep landscaping and lawns neat, and eliminate clutter and eyesores to improve the curb appeal and value of your home for remarkably less money than a major structural addition.

4. 

   An updated kitchen is attractive to buyers.

   Prioritize the kitchen and bathrooms when considering adding to your home. Buyers look for updated kitchens and bathrooms, and homeowners tend to recoup 70 to 80 percent of their costs.

5. 

   An updated bathroom or just new fixtures adds value.

   Increase value by adding smaller, less-expensive additions to your kitchen and bathrooms. Install new light fixtures and add high-end faucets and towel racks to maximize value while minimizing cost.

References

• Family Financial Education Foundation: Boost Your Home's Value While Staying Within Budget
• Remodeling Magazine: Cost vs. Value Report 2009-2010