Boise, do you Renovate?

I receive questions on what renovations are good for resale value. The important thing to remember that for renovations a 70% or better return is good. If you spend $10,000 and it increases your selling price by $7,000, you have done well. So you really shouldn't do renovations strictly as an investment, you do them for your own comfort and livability. Renovations are different than repairs or rehab work. If prospective buyers see an area in need of repair the amount deducted for that is often closer to double the cost of the actual repair. So it is more cost effective, in most cases, for you as a prospective seller to do the repairs.  Also, the return on many low cost items such as new paint, trimming bushes, removing excess furnishings and the like, far exceed the cost.

But with regard to renovations, here are five home improvements that provide a noteworthy return on investment, courtesy of ARAcontent.

"1. Skylights

You can lower your electric bill by installing skylights that will reduce dependency on artificial light and fill your home with natural light...They're also an effective privacy preserver for bathrooms where you might not want a wall window. Skylight and sun tunnels (skylights that use reflective tubes to bring sunlight into rooms without direct roof access) not only enhance the energy efficiency of your home, they just may make you feel better about living there.

2. Decks

Whether you go for wood or composite, adding a deck is a great way to boost resale value, expand your living space and up your enjoyment of your home environment. On average, homeowners who add a wood deck can expect to recoup more than 80 percent of its cost when it comes time to sell, according to Remodeling Magazine's 2009-2010 Cost vs. Value Report. Composite deck additions return about 71 percent at the time of resale.

3. Kitchens

It makes sense that the room where most families spend the bulk of their time would be a popular remodel - and one that pays off big in terms of value and comfort. Even a minor kitchen remodel - costing about $21,000 - will return about 78 percent of its value on resale, according to Remodeling Magazine. A major kitchen job, costing around $57,200, will recoup about $41,200, or 72 percent.

4. Baths

Whether you're tackling a major job that involves knocking out walls and changing fixtures, or just making cosmetic improvements like upgrading faucets and repainting, remodeling a bathroom goes straight to the heart of our craving for comfort. Americans view their baths as far more than a place to get clean and take care of other necessities. Even if you're not creating a home spa, improving the bathroom is sure to boost your home's resale value and increase your satisfaction with the room. Remodeling Magazine says the average bathroom remodel costs around $16,100 and returns up to 71 percent of that cost at the time of sale.

5. Basement/attic remodel

With more families staying put in the homes they have, rather than moving up to larger homes, many Americans are looking for ways to expand their living space while staying in place. Attic and basement remodels are great ways to add usable, livable space at a fraction of the cost of building an addition. The lingering effects of the Great Recession have multiple generations living together under one roof again, and many of these families create bedrooms, bathrooms or even family rooms in unfinished attic or basement space. Everyone appreciates the extra room, and attic renovations and basement remodeling yield resale returns of 83 percent and 75 percent, respectively, according to the Cost vs.Value Report."

I will add a couple caveats here, ALWAYS be aware of your surrounding neighborhoods and what is expected for your size of home. If you overbuild or over improve for your neighborhood your return will greatly diminish. Some renovations will help your home sell faster while not increasing your return.