"How much

of that cost you can recoup will also depend on the market conditions

in your area and possibly on how soon you can sell after the remodeling

is completed," he added.

The remodeling

report Faulkner cites focuses on projects ranging from remodeling a kitchen,

bathroom and master suite to family room, bedroom and second floor add-ons.

The report provides an average cost for the renovation or remodeling work

and also calculates the average amount the homeowner can expect to recoup

if the home is sold within a year of the project's completion.

A minor kitchen

renovation will differ from a major one, says Faulkner. The minor project,

which could include updating the kitchen with vinyl or ceramic tiling

and adding under- cabinet lighting, was found to have the most "bang

for the buck" at resale time a national average return of 94 percent

of the project's estimated cost of $9,182.

the report found that a major kitchen renovation, which includes a total

remake right down to installing additional shelving, upgrading appliances

and adding a second sink and cooking area, generated an 87-percent return

on a national average cost of $24,486, he said. "Keep in mind that

these averages are based on if the home is sold within a year of the project's

completion," he noted.

"When

it comes time to sell your home, very often your real estate professional

can help you determine how much value you can add to your home through

renovations and remodeling," he said. "When you're aware of

the costs and value of various property improvements, you can help increase

the chances of your home selling quickly and for the price you want,"

Faulkner added.

According to

the report, add-ons to homes such as family rooms, additional bedrooms

and even second floors were found to recoup more than 80 percent of their

national average cost at resale time. The report found that homeowners

who opted to spend a national average of $32,958 to add on a 16-by-25-foot

family room can expect to recoup $27,830 if the home is resold within

a year of the renovation.

"Meanwhile,

ambitious homeowners who spend a national average of $60,732 to add a

second story to their home can expect to recoup 84 percent of their investment,

or $50,761, if the home is sold within a year of completing the addition,

Faulkner noted.

The report

also found that the home improvements that proved nationally to have the

least potential to recoup their costs included a deck addition (70 percent

of the cost is recouped); window replacements (68 percent of the cost

is recouped); and the addition of a home office (64 percent of the cost

is recouped).

"It's

also important to remember that how much value a renovation or remodeling

project adds to a home will also depend on a number of factors specific

to its location," Faulkner explained. "For example, how much

you can expect to recoup from a remodeling project may depend on your

market area's housing stock, current market conditions, buyer preferences

in a certain area and the location's climate."

According to

Faulkner, if you plan to move within a year or two, it's wise to limit

yourself to relatively inexpensive touch-up projects you can do yourself

or have done for little cost. "Cosmetic improvements will easily

give your home a fresh look, add to its market value and create a favorable

impression that will make it easier to sell," he said.

"The market

value of your home is determined mainly by the value of the homes around

it, regardless of renovations," he said. "Of course, if you

plan to stay in your home forever, recouping your costs is not a factor.

You can let your imagination and budget be your only limitations."

The Fayette

County Board of REALTORS is one of more than 1,600 local boards and associations

that comprise the National Association of Realtors. As the nation's largest

trade association, NAR is "the Voice for Real Estate," representing

nearly 700,000 members involved in all aspects of the real estate industry.

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