Projects that don't pay for themselves
Planning a home renovation? Do it for your own enjoyment, because there's no guarantee you'll get all of your expenses back when you sell.
That's one lesson from a 2014 Remodeling Magazine study. The magazine looked at prices on 35 popular home renovation projects -- and just how much of that money homeowners can expect to recoup when they sell.
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In the study, prices were based on national averages for time and materials supplied by skilled professionals. (No DIY jobs here.) While some projects moved the needle on home value more than others, most didn't return 100 percent of the renovation cost at resale, according to the report. And the six projects that yielded the least at resale all returned less than 61 cents on the dollar.
If you renovate, "you have to understand that it may not add the value to your home that it cost you," says Mark Ramsey, broker with The Ramsey Group at Keller Williams Realty in Charlotte, North Carolina.
So "be happy you did it and got to enjoy it," he says.
Here, according to the 2014 Remodeling Magazine study, are the six home renovation projects that bring the smallest return at resale, from worst to sixth-worst.