The following comes from Remodeling magazine's 2004 survey that compares the cost of construction to likely return on investment (ROI)at resale, minor kitchen remodels rule, returning 92.9 percent of your investment, followed closely by new siding at 92.8 percent. For the most up to date Portland numbers click here
- Kitchens typically suffer the most wear and tear. And because kitchens tend to follow style and color trends, they often seem dated sooner than other rooms in the home. The most popular minor improvements include adding functionality with dual sinks and cooking stations, and cosmetic improvements such as under-cabinet lighting, marble or granite countertops and ceramic tile
backsplashes. To add space, consider a walk-in pantry or breakfast alcove.
- Bathroom additions ranked high in the survey as well. A midrange addition (approximately $20,000) returned 86.4 percent; an upscale addition ($40,000-plus) fetched an 80.1-percent return. But finding space to add a bathroom can prove tricky; for best results, consider a contractor.
- Family rooms came into vogue after many American homes were built; hence, you may face sacrificing other spaces (rooms, closets) to create one. To enlarge the space, try lowering the floor, opening the ceiling or expanding out with box-bay windows. According to the survey, adding a family room can be a wise (80.6 percent ROI) but costly ($50,000-plus) investment.
- Bedrooms are always listed first in real estate descriptions for good reason: we spend nearly half our lives there. If you can put one in your attic, you're likely to recoup 82.7 percent of the estimated $35,000 cost of installation. Consider stacking your bathrooms to cut costs. Properly placed dormers and roof windows can help offset the add-on appearance.
- Master suites have become more the rule than the exception in most hot real estate markets. If you are converting a bedroom into a master suite, try to locate the closet as a buffer between bedroom and bath, and enhance the suite effect with recessed lighting, sconces and built-in adjustable reading lights. A midrange master suite ($70,000-plus) will return 80.1 percent; an upscale master ($135,000-plus) a bit less, at 77.6 percent..
- Decks expand your living space, and you rarely lose by making your home larger, be it exterior or interior renovations. A $7,000 deck addition placed fourth in ROI at 86.7 percent.
- Unused/renewed spaces might not top the list of money-smart remodeling projects, but a basement makeover ($47,000-plus) can still command a 76.1-percent return. A sunroom addition ($30,000-plus), which made the survey for the first time, might fetch a 70.8-percent return.
- Windows quickly and inexpensively add to a home's volume, and volume is the buzzword in real estate these days. So it's no surprise that your return on new glass is excellent, whether you're contemplating a midrange window replacement (less than $10,000) at 84.5 percent or an upscale replacement ($15,000-plus) at 83.7 percent.