Six Home Improvements to Increase Property Value

Any time you are thinking of starting a home improvement project it's important to know what kind of return you can expect for it. Some remodeling projects will make your home more enjoyable to live in but will not do much in terms of raising the actual property. This may be absolutely fine if you like your home and have no intention of moving any time soon but if there's even a possibility of the property going on the market it's important to know what kind of return you can expect from the investment.

This reader is looking to get the most bang for their buck:

"I'm planning to move in the next six months or so and I want to make some improvements to my home before I put it on the market, what can I do that will actually let me raise my asking price?"

Here are 6 areas you can look at improving that will show you an increase in property value, actual percentage of return can vary.

6) Deck - Building a deck can be a good home addition. Returns usually range 65%-90% with 73% being a safe amount. This is an improvement that can vary a lot depending on what materials are chosen and the complexity. A nice deck will also provide a good selling point for a home and will help it to stand out.

5) Windows - The addition of energy efficient windows can generate a return of 60%-90% with 80% or 81% being most common depending on the type of window being used. On top of the increase to property value, this is an improvement that will result in a savings in energy costs and may qualify for tax rebates.

4) Adding a room - While the actual addition of a room will add square footage and improve the property value, it can be very expensive and usually results in returns between 50%-83%. However, a more cost effective alternative may be to transform an existing space into a living area. Most common methods for this involve remodeling a basement or attic. If these aren't an option then closing in an attached garage or Arizona room may be a good way to go.

3) Siding - Installation of vinyl siding can show a return as high as 89% - 94%. The highest returns will be seen in cases where the existing siding is very old or there is none. This can be a good time to evaluate your current insulation, adding this as an upgrade can help lower your heating and cooling costs which will improve the long term returns.

A nice kitchen adds value but be careful with high end upgrades.

2) Kitchen - This room is considered to be the home's heart. Improvements here can not only raise the property value but increase the likelihood of the property selling. Return on investment figures estimate that you can recoup 60%-120% of the remodeling costs with a 98% return being very common. As a point of caution though, in most homes, an expensive, high end remodel isn't as likely to get as high of a return as a mid-range one, especially when it doesn't fit with the home or is unusually expensive for the neighborhood. Generally speaking, a modest improvement in this area will give the highest return. Consider updating appliances, adding fresh paint, updating cabinet hardware, replacing old faucets, a new counter top or updating the lighting to get the biggest return for the money you spend and give your kitchen a real "wow" factor.

The best bang for your buck is in the bathroom.

1) Bathroom - Remodeling a bathroom or adding a new one, particularly if your home only has one bathroom, generally provides the highest return on investment. It is estimated that 80%-130% of the costs associated with a project like this can be recouped and 101% is considered a realistic return on many projects. Turning an extra room or other unused space into a new bathroom can take some time and be costly if there aren't water supply lines nearby already so be careful when choosing a location. Improvements that will provide the best return include tile flooring, tile surround for the tub/shower, adding a recessed medicine cabinet with lighting, updating hardware and updating faucets.

While some of these projects, or at least parts of them, can be done by the average home owner. For improvements beyond your ability though it's a good idea to find a skilled general contractor.