The Hidden Value in Your Remodeling Project

The trade publication Remodeling magazine, in its 2006
"Cost vs. Value" survey of over 2,000 members of the
National Association of Realtors, found that "minor kitchen
remodels" have the best return on your remodeling
investment, at 85.2%.

That means for every $1,000 you spend, you add $852 to the
value of your home when you sell it. When you look at it
this way, it sounds like a losing proposition, doesn't it?

But depending on the type of remodeling project, there may
be a few additional ways you can benefit financially from
your remodeling project - ways that could easily push your
investment out of the red and into the black.

Taxes. Uncle Sam likes it when you spend money on certain
things, and home improvement is one of them. And you can
benefit two ways from tackling that remodeling project
you've been considering. First, the cost of the project
itself may be tax deductible. Second, if you take out a
home equity loan to fund the project, the interest on that
loan may be tax deductible as well.

Check out IRS Publication 523, "Selling Your Home," for
more information, and consult with a tax professional to
find out what will work with your particular financial
situation.

Energy efficiency. With oil prices rising as fast as they
have, heating your home is becoming an increasing financial
burden. (And it's not limited to oil heating - natural gas,
propane, and even wood prices have been rising, too.) With
your remodeling project, you have a few ways to help cut
your energy costs.

The first is on windows and doors. When selecting them, ask
your contractor to talk to you about types that will
improve your home's energy efficiency, especially compared
to what you have in your home now. Second, if you'll
actually be opening external walls as a result of your
remodeling project, check the insulation you have in place,
and ask your contractor about upgrading it. Third, if
you'll be upgrading any of your large appliances (like
refrigerators and dishwashers), check out the "Energy Star"
ratings provided on them to see how well they perform. And
finally, if a plumber's part of your remodeling project
plan, explore the options you may have to improve your hot
water heating situation.

When you start thinking beyond the initial cost of your
investment in a home remodeling project, you'll find the
rewards go well beyond the upgraded value of your home. So
when you start budgeting for your remodel, be sure to
factor in the long-term payoff as well.


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About G.M. Roth
Since 1986, G.M. Roth Design and Remodeling has been
designing and building award-winning projects. From kitchen
and bath remodeling to in-law suites, porches and decks,
clients get their "Dreams Delivered" by G.M. Roth. To find
out more about G.M. Roth, and how their commitment to the
Design/Build philosophy provides flexibility for your
project while preventing time delays and cost overruns, go
to http://www.GMRoth.com .