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Remodels holding more value than home prices

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Remodeling Magazine's 2008-2009 Cost vs. Value Report, produced each year in conjunction with Realtor Magazine, contains good news about the value of remodeling projects. The recent Cost vs. Value Report showed that renovations on a nationwide basis held their value better than home prices did in 2008. According to the National Association of Realtors (NAR), home prices declined 7 percent in 2008, while the value of homeowners' investments in remodeling dropped only 2.8 percent in 2008. During slow real estate cycles, many would-be sellers postpone their move and remodel instead. This makes sense as long as the projects are selected carefully for maximum return on the investment. It's important to avoid renovations that would overimprove the property for the neighborhood. One benefit of remodeling sooner rather than just before selling is that the homeowner is able to enjoy the improvements before moving on. All too often, sellers wait until right before they put their home...