Question: I am contemplating remodeling to my home and would like to know what projects will increase property values if I decide to sell my home within three years.
Answer: The home-improvement contractor magazine, Remodeling Contractor, annually lists the projects, based on a nationwide poll of average costs and returns on investment when your home is resold.
Again, this year the greatest return on investment for a home-improvement project is in adding a fireplace. According to the magazine, the average cost of adding a fireplace is $3,350, and the return on the investment on resale is 138%.
The second best investment is adding a full bath at an average cost of $8,200, with a return of 122%. A minor kitchen remodel that costs an average of $7,300, returns 92%, while a major kitchen remodel that costs $19,500, returns 90%.