Lendingtree.com

Most agents and brokers will tell you that value is relative and real estate prices can vary widely from one neighborhood to another. Likewise, when it comes to value adding features on your home, what is desirable in one area of the country may not be fashionable in another. A feature like rain gutters, while a necessity in Seattle, are rarely used in a place like Los Angeles. However, agents and contractors will agree there are certain home improvements you can perform that will always provide a good return on your investment and increase the resale value of your home.

There are three ways to look at value when it comes to performing home improvements:

1. Consider only how much the improvement increases the value of your home.
2. Consider the cost of that improvement compared to the amount of the value increase.  This is known as recouping cost.  For instance, if a home improvement costs $10,000 and increases the value of your home by $8,000 it is said to recoup 80 percent ($8,000 / $10,000 = 0.80 = 80 percent).
3. Consider the intangibles that are harder to monetize: the enjoyment you receive from a particular improvement like adding a porch swing, or the health benefits you receive from improving the air quality in your home.

LendingTree.com has compiled a list of the top ten value adding home improvements as published by the National Association of Realtors and Remodeling Magazine.  While we do not take into account the third value consideration and the intangibles, the list below shows a few great ways to improve your home’s aesthetic, curb appeal and overall value.

1. Master Suite - Turning your master bedroom into a master suite is a popular remodel and one of the best ways to add value to your home. Bedrooms aren’t just for sleeping anymore. A master suite can include sitting areas, direct access to walk-in closets, and of course, the master bath. Master suites can increase your home value as much as $67,000 and recoup as much as 65% of their costs on average.
2. Family Room Addition - Family rooms are a desirable addition to modern homes. They can increase the value of your home as much as $50,000 on average and recoup approximately 65% of their costs.
3. Basement Remodel – People who have basements are tapping into that storage area and turning it into living space including bedrooms, family rooms, play rooms, and even bathrooms. A basement remodel can add as much as $46,000 to the value of your home on average for a mid-range remodel and recoup 75% of its cost.
4. Kitchen – Technology changes so quickly that anything more than a few years old looks dated. Since your kitchen is likely the one room in your house to contain the most gadgets, remodeling this room can add significant value and utility to your house. Kitchen remodels can recoup as much as 72% of their costs.
5. Attic – A great way to turn this wasted space into livable space is by adding a small bedroom or converting this space into usable storage. Attics can add over $40,000 worth of value to a home and recoup over 80% of their cost.
6. Sun Room – A popular trend today is having a room that doubles as an indoor-outdoor area, also known as a sun room. Some sun rooms have entire walls that can be rolled up, opening the room to the outside completely, while others are more simple additions, acting like screened in porches or decks. A sun room will recoup approximately 50% of its cost.
7. Garage – Families with multiple automobiles require two or more garages. Some people with boats and RV’s also like to keep their vehicles safe indoors. As such, adding a garage for these purposes will add value to your home. A two car garage can add as much as $36,000 to the value of your home and recoup 62% of its cost.
8. Bathroom – most agents will tell you the master bathroom is the third most important room to potential buyers, behind only the kitchen and master bedroom.  Turning your bathroom into a master bath suite with jetted tub, standing shower and dual sinks can increase the value of your home.  Also, adding an additional bathroom to a home that has only one can also add resale value.  A bathroom addition will add over $20,000 of value to your home and recoup 60% of its cost.
9. Home Office – With scores of people telecommuting or opting to work from home rather than at the corporate location, a home office is quickly becoming one of America’s favorite additions. This addition will recoup almost 50% of its cost and increase the value of your home nearly $13,000.
10. Roof Replacement - Many potential buyers will cross your home off their list if they think roof repairs will need to be made in the near future. At the same time, replacing your roof can add value to your home and make it more energy efficient. A new roof will increase the value of your home nearly $13,000 and recoup almost 67% of its cost.

Photo Credit: alancleaver_2000 on Flickr