They say the average US household has lost 40% of its wealth in the last 5 years, largely due to plummeting home values. Often, when people can’t sell, they renovate. Either they are trying to make the house they are stuck in more livable, or make it more attractive to a potential buyer. And no matter what they spend, they tell themselves it’s not an expense, but an investment.
It’s the magic phrase uttered by almost anyone who’s ever considered the cost of home remodeling: “We’ll get it back when we sell.” Unless you keep those projects practical, though, you might just be kidding yourself. Bankrate.com
Then they list the types of remodels you might want to avoid:
- Home Office: Will cost you up to $29,000 but you’ll only get 46% back upon sale.
- Backup Power Generator: Hey, they had that windstorm in Ohio a couple of years ago, and my mom was without power for 2 weeks! But this once-in-a-blue-moon convenience costs about $15K, and you will get back 45.8% upon sale.
Adding a Sunroom: Costs $75K, and you will get back about half of that.
- Upscale Master Suite Addition: Succumbing to HGTV envy will cost you upwards of $220K and, again, you could make half of that back.
- Adding a Bathroom: $20K to $40K, depending on your tastes, and a 53% return.
- Garage Addition: Dad’s dream is expensive, up to $90K, and you will get a 54% return.
There’s more at the original article, so check it out!