Room Additions

Room Additions Add Space--and Home Value

by Gabby Hyman

Want to increase your living space and add value to your home? Start making room addition plans. Recent surveys show that many room additions increase the value of your home while recouping a high percentage of expansion costs. Bathrooms, bedrooms, kitchens, and family room additions are popular choices among homeowners.

Additions that Pay Off
A 2007 master bedroom addition also yielded a high return on investment, expanding the home with a 24-by-16-foot room including a walk-in closet and whirlpool tub. The expansion recovered 69% of the average cost, increasing the home value by $68,172. The best news is that the Remodeling Magazine survey revealed that all expansion or addition projects returned at least 60 percent of their costs in increased home values. Other expansion or remodeling projects that performed well were bathroom additions (yielding an average $24,000 in resale values), deck additions (returning a hefty 84 percent of costs in increased resale value), and siding replacements (recouping 83 percent of costs through increased home value).

Regional Differences Affect Expansion and Addition Values
If you simply want to increase home value, plan a project that suits your locale. In New England, for example, bathroom additions return a strong 65%.Family room additions fetch the highest return (nearly 85 percent) on investment on the West Coast, yielding an average $78,647 increase in valuation. Homeowners who planned expansions in the South Atlantic states found high success with bathroom additions, recovering on average more costs than the rest of the country. Residents in the American Southwest also fared well with bathroom additions. They recovered on average 75.6 percent of room addition costs compared to the national average of 66 percent. No matter where you live, when you add living space to your residence--for whatever purpose--you'll almost certainly increase the net value of your home.

Source:
2007 Cost vs. Value Report
Realtor.org
Remodeling Magazine

About the Author
Gabby Hyman has created online strategies and written content for Fortune 500 companies including eToys, GoTo.com, Siebel Systems, Microsoft Encarta, Avaya, and Nissan UK.


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