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One of the best things that you can do with your equity is to put it right back into your home. It's a clear win-win: You enjoy the benefit of an improved living space and tangibly enhance your home's value at the same time.
But not every project will increase the resale value of your home. So it's a good idea to choose wisely when it comes to home improvements if you're looking to increase the value of your home.
Here's how Remodeling Magazine rates jobs in terms of one-year return on investment (ROI):
| Project |
ROI |
Average Price Tag |
| Minor kitchen remodel |
88% |
$8,655 |
| Second-story addition |
83% |
$73,553 |
| Bathroom remodel |
81% |
$9,135 |
| Bathroom addition |
81% |
$13,918 |
| Family room addition |
75% |
$30,960 |
| Major kitchen remodel |
71% |
$31,090 |
| Deck |
55% |
$8,022 |
Tips:
- Don't over improve. It's difficult to recover the investment in a home that is already more valuable than most others in the neighborhood.
- Keep whimsy in check. Eclectic tastes likely won't appeal to mainstream homebuyers.
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