Those who are remodeling are generally opting for less frills, cheaper finishes and room updates Instead of building huge master suites or home offices.  The trend is to better utilize space they already have. They’re seeking energy-efficiency upgrades and low-cost cosmetic improvements that make a home more comfortable and appealing.

There are two other trends that are impacting the extent  of improvements that are made.  One is expected payback (see below) and the other one is energy awareness possibly fueled by tax credits that are still in effect.

Tax Credits For ALL Homeowners

The IRS allows tax credits for energy efficient improvements, but with them come some fine print.  All of the information is available HERE

Renovation Payback

When it comes to major or minor remodeling projects most homeowners think they will break even at selling time.  Many wrongly feel that adding the in-ground pool will make the home more marketable.

The following data is derived from the study. (http://www.remodeling.hw.net/) The columns represent the project cost, value at the end of the project and the % of value retained upon sale of the home. From this year’s results , improvements to the exterior had the best returns and a new entrance way door had the best return of all the minor projects.