Home remodeling adds value, utility

Q: I don’t see the point in remodeling a home. The building materials deteriorate over time, the stylish new fixtures fall out of style, and you just have to do it all over again in 10 years. You just can’t rely on a home to be a good investment, in my opinion. So, why spend a ton of money on remodeling? — Franklin S., Cincinnati

A: That’s a valid question. How much value is actually added to a home by remodeling work? How much money should you spend, if any?

Because certain remodeling projects can run in to the tens of thousands of dollars, a little research before deciding what to improve is well worth the effort. For example, Remodeling Magazine and Bankrate.com recently published a list of the top 10 remodeling projects in 2006 and the return those projects brought when a home was sold.

Replacing a home’s exterior siding with a fiber cement siding was the No. 1 project, with owners recouping 88 percent of the cost, on average. In some cities, 100 percent of the project cost was recouped when the home was sold.

Minor kitchen remodels and bathroom remodels hit Nos. 4 and 5 on the list, respectively.

Remodeling is often about more than just numbers, however.

Updating an old kitchen, replacing windows and doors and adding insulation can give your home a fresh look and reduce energy costs. These types of repairs can also qualify for a federal income-tax credit of up to $500, if completed before Dec. 31, 2007.

More information on the credit can be found at the Alliance to Save Energy Web site ( www.ase.org/taxcredits).

So, while it’s important to look at possible remodeling projects with a critical eye, don’t completely dismiss their value. Sometimes the financial returns aren’t as important as the happiness one gets from a house that feels more livable.