Key to Remodeling? Know Your Objective

By: Lisa Schmeiser: REALTOR® Magazine Online
Homeowners stand to recover 80 percent of the money they put into renovations, but National Association of the Remodeling Industry President Paul Winans says the extensive cost of improvement projects makes them practical only if the owner plans to stay put for five or more years.

Remodeling Magazine's 2004 cost vs. value survey indicates that minor kitchen remodels cost more than $15,000, and homeowners will shell out anywhere from $21,087 to $41,587 for a new bathroom.

Homeowners should make a list of why they want to remain in the property and refer to it during the remodeling process, recommends Winans.

Meanwhile, those who plan to remodel and sell the home at a profit should formulate a strict budget and follow it, because over-improving can hamper a sale.

Homeowners should also keep in mind that improvements tend to increase property value, so they should contact their insurance companies to get additional coverage.