According to Remodeling magazine’s “Cost vs. Value Report” in 2002, the payback on improvements was measured by comparing the costs of various types of projects in the nation’s top 35 markets to home values. A panel of more than 200 real estate agents and appraisers participated.

Nationally, the results showed that homeowners recover about 80 percent of home improvement costs through an increase in the home’s worth. In hot markets, the increased value of the home may exceed improvement costs.

Generally, homeowners recovered nearly 90 percent of costs for remodeling bathrooms, 67 percent for kitchens, 75 percent for master suites and 79 percent of basement remodels.

Homeowners recovered 94 percent of costs for bathroom additions, nearly 80 percent for family room additions, and 94 percent for adding a second story.

Recovery of costs of siding, window and roof replacement were, respectively, 79, 74 and 67 percent.

In general, highly visible improvements, such as remodeling and additions, added most to the value of the home. Projects such as roof repair and foundation work, while improving the structural integrity of the home, added less to home value.

Source:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/05/27/REGSHQ1Q281.DTL