Q.
I want to remodel, but how do I find out whether I'll recoup the cost during resale?
A.
Before you plan on doing any more remodeling to your home, first you may want to consider a couple of things to determine if it's really worth it.
Obvisously, it's a bit unrealistic to expect to get all your money back from a renovation project once it's time to sell.
But if you want to make a home improvement project investment that will pay off once you decide to sell, be sure to do your homework before beginning the project.
Find out how much your house is worth.
In order for you to get back the cost of the remodel at resale, the value of the house after the renovation should be comparable with that of other homes in your neighborhood.
When renovating for resale, be sure to choose only certain luxury items you want or need.
A new steam shower or marble bath may be high on your list, but it may make your moderately priced home more difficult to sell.
Read up on the Taxpayer Relief Act of 1997.
One of the new laws lets most homowners take a generous tax exemption on profits from the sale of a primary residence.
Call the IRS at 800-829-1040 to find out how this law could affect your profits at resale.
A special note from Vickie Hughes --
I wrote this article strickly because I just recently completed the remodel of my personal home in Huntington Beach.
Should you need referals for GOOD contractors and vendors, I would be happy to e-mail a list upon request!
