Investing in your home

When making significant changes to your house consider more than cost of the project, also consider whether that cost can be recovered when it comes time to move. Think about whether the improvement is really that - an improvement - and not a drawback to a future sale.

In the category of home improvements, bigger is not always better. Look to your neighbors when adding rooms or contracting for a major remodeling project. You do not want to out-price yourself in reference to the surrounding homes. Spending too much for upgrades will be harder to recoup if the neighboring homes are valued much lower than yours.

Pools versus landscaping

Depending on the area you live in and construction costs, a standard size, in-ground pool can be anywhere between $30,000 and $50,000. Rarely does a homeowner recover the cost of installing a pool.

According to Janice Busovne, a real estate agent with Carriage Hills Realty in Niceville, a pool can add some value to a home, but realistically a seller cannot expect to get a return on that investment by adding $50,000 to the price of their house. If you want to enhance the outside of your home, Busovne said, a better investment would be building a deck or adding landscaping.

"Dollar for dollar, pound for pound (landscaping) is one of the best things you can do," she said, adding a deck is also a great idea. For climates like Florida, residents can spend more time outdoors, and a deck is just an extension of the indoor living area. These projects can be even less expensive and offer a better return on investment if you do the work yourself.

Kitchen remodeling

This can be the best investment for upgrading a home. Remember to not price yourself out of a good thing. When choosing features for the new kitchen select good quality materials that keep with the price range of the whole house. While granite countertops and restaurant quality appliances look great, you cannot recover those costs without overpricing your house. Prepare to spend between $15,000 and $30,000 depending on the extent of the remodeling including flooring, cabinets, appliances (stove, refrigerator, and dishwasher), and counters.

Unlike in the past when kitchens were situated away from living areas, today's casual dining and focus on family has brought the kitchen into the forefront and it has become the heart of the home. It should be both functional and comfortable.

Bathroom additions

Another good investment depending on the new features you want to add, including tile floors, new sink and tub fixtures, cabinets, and mirrors. The same precautions should be taken when remodeling or building on a new bathroom - do not price yourself into debt. This project can range in price from $10,000 to $15,000.

If you do not want to spend that kind of money on a remodeling, Busovne suggested doing simple, inexpensive upgrades that will enhance the look of the room.

"It is as easy as framing the mirror, or accessorizing," she said. Setting out matching towels, a little fresh paint and other little aesthetic touches can do wonders in a drab room.

Room additions

The key to this project is to research what other homes in your area and price range offer. Would a den be a better addition than another bedroom? If adding a bedroom, should you include a master bath? Where should you put the addition to take advantage of natural landscaping and views? As with bathrooms, kitchen and bedrooms, any additional square footage to a house can be factored into the selling price.

If adding a room, Busovne said you should consider the law of diminishing return. The major portion of this sort of project, she said, is labor - pouring concrete slabs or setting walls - not materials. Instead of adding a small 100-square-foot room that could cost $30,000, you can build it double that size for only $35,000 or $40,000 and definitely add that to the price of your home.

Flooring

Installing tile floors in kitchens, foyers and bathrooms is another excellent investment especially since this sort of home improvement can be a do-it-yourself project.

When considering any home improvement project, think about whether it is just for you as the homeowner, or can it be a major change in the home that enhances its overall value. Weigh the cost of the upgrades against a reasonably increase in the future asking price of your home because of those upgrades. One of the best guidelines when deciding what project to tackle is look at other homes in your neighborhood. Try to bring your home up to the same standards of these other homes, especially newer houses that include the most up-to-date features and appliances.