ROI

Home Remodeling/home additions as an investment, not a cost (ROI)

People often wonder, "Is it worth the money to remodel my home?" The answer? "Probably." The reason home improvement and remodeling is a $230 billion industry is because people find value in home improvement projects.

You may not, however, recover the full amount of the remodeling investment right away. Typically you can expect between 80% and 90% back on your home improvement investment dollar within the first year or two. With the right home improvement project, you can increase and even make money on the improvement the longer you stay in the home.

Like a turbine quietly creating energy, the power of compounding works its own power for the homeowner over the long haul. By being in the home a longer period of time, you give the real estate market time to increase and you leverage the remodeling investment as property values grow.

However, you should consider three things when deciding if a home improvement project is a good investment:

* How your project impacts your home's appraised value
* How long you plan to be in the home
* How strong the resale market is in your area.