Renovations are expected to increase the market value of a home but depending on the kind of work that has been done and the location of your home, the increase in value may or may not be higher than what you have spent. Doing some research first on how your expenses would compare to the actual increase in market value of your home may be worthwhile if you want to sell your home soon.

Location is also a factor in determining the increase in market value for a particular kind of renovation. For example, you might be able to recover the complete costs of the installation of a vinyl siding via the increase in resale value in Knoxville, Tennessee. However, the increase in market value for the same work in other cities except for Pittsburgh, Pennsylvania, would only be 90 percent of the value in Knoxville. And in Pittsburgh the improvement in market value would even be less, which is 70 percent of the Knoxville value.

However, a key factor in the increase in resale value is which part of the house has been remodeled or renovated. According to various studies, the kinds of renovations that may provide you with the best return in market value include the remodeling of the bathroom, the renovation of the master bedroom, and replacement of the siding. These are followed by the renovation of the sun room, a two-story addition, remodeling of the kitchen, and renovation of the attic bedroom.

These are also followed by the replacement of the roof and the replacement of a strategically positioned window. Other renovation activities that may also be worthwhile but lesser in value include the remodeling of the basement, the addition of a bathroom, and the renovation of a family room.

However, there are activities that are less costly but have a large impact on your home’s market value.  Repainting the house is one of the most powerful ways of increasing the resale value at a much lower cost compared to other projects. Real estate agents estimate that you will get a 29 percent return on the amount that you have invested for this particular work.

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