Returns on Home Remodeling

According to Remodeling Magazine's annual "Cost vs. Value Report, remodeling a home not only improves its livability but its curb appeal with potential buyers. Among the hottest improvement projects in 1995 were updated kitchens and baths, home-office additions and more amenities in older homes in order to compete with new homes on the market.

The highest paybacks come from the latter projects, according to the magazine's 1995-96 survey of more than 300 real estate professionals. "The resale market is tough right now and you need to give your home every competitive advantage you can, one agent said.

While home offices are a relatively new remodeling trend, adding one to a house recoups 58 percent of the costs, according to the survey.

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