Question: What are the best and worst home improvements people can make in their homes with regard to added resale value?
Answer: Surprisingly, the best investment a person can make in a home, with regard to adding value to the property, is the addition of a fireplace, if none already exists. The Remodeling Contractors' Magazine stated in a recent issue that an investment of $3,250 for the average fireplace installation would return $4,000 on resale, or an increase of 23%. Homes without a fireplace will usually greatly benefit by the addition of even a low-cost fireplace.
The worst investment, with regard to recovery on the resale of the home, is that of a swimming pool. This study, of course, was made on a nationwide basis and would include the Eastern and Midwestern sections of the United States. But even in California, swimming pools, from the standpoint of resale value, are not great when compared to other home improvements. The reason? Many individuals definitely do not want a pool because of the cost of maintenance and the fear of injury to children. This seriously restricts the sales of many homes, even though the swimming pool may add a great deal to the quality of life of the owner.