Determining whether a home improvement will add value to your home can be tricky. There are many factors to consider. Some factors are tangible like the cost of making the improvement. Other factors are less tangible and harder to quantify, like the improved quality of life the home improvement brings you and your family.

When making a dollars and cents evaluation, first consider the costs involved in making a home improvement. Be sure to factor in the costs for materials, labor, building plans, building permits and any changes to your
homeowner's insurance.

Then consider how these improvements will impact the value of your home positively or negatively. (Not all home improvements add value. Some can even decrease the value of your home.) Remember, your return on investment can vary as the real estate market changes. And the value of a home is not always reflected by the selling price. (In a "seller's market" your home's value may be lower than the home's selling price.)

Remodeling Online (http://www.remodeling.hw.net/pages/remodelingonline/index.nsp?) evaluated 15 home improvements in their annual Cost vs. Value Report. This report analyzes the percentage of cost returned for a home improvement when comparing cost to construct versus added resale value. Of the 15 improvements evaluated in the 2003 report, only a deck addition had a positive return (104.2%).

Improvements with returns in the 92.6% 98.1% range in 2003 included: siding replacement (98.1%); bathroom addition, mid-range (95%); attic bedroom (92.8%); and bathroom remodel, upscale (92.6%). These evaluations were conducted in what is considered a seller's market.

It may be that the money you plan to invest in a home improvement would be better spent toward a new house. Selling your current house and buying a new home with the features and amenities you desire may actually save you money. I can help you research the local real estate market to help you make this decision, send me an e­mail at paul@aragonestates.com to schedule a time for us to meet that is convenient.