Buying a house is the biggest investment most homeowners make. That's why it's good to think about cost vs. value when remodeling your home. You may find that the improvements you want are, in fact, a good investment: or you may decide that for the time you live in your home, the enjoyment and convenience of those improvements are well worth the price. When considering cost vs. value, here are some points to consider:

What is the highest market value for homes in your immediate neighborhood? How much would your home be worth in today's market? A general rule of thumb is to not improve your house to the point where the desired sale price would be more than the most expensive home in your neighborhood.

How long do you plan to live in your home? You would evaluate home improvements differently than if you plan to move in three, five or ten years.

Compared to other homes in your neighborhood, is your house up to date? How does it compare relative to features and space? Look at the landscaping and front entrance. How does it rate as far as curb appeal?

What are buyers in your area and price range looking for in a home? Find out about local trends and market preferences. To stay in touch with the real estate market, stay in touch with a real estate professional.

Remodeling magazine researched 12 remodeling projects by working with three top cost-estimating firms and more than 300 real estate agents in 60 cities nationwide. The results of the exclusive 1995-96 Cost vs. Value Report. In that report, figures for resale value are based on a mid-priced house in an established neighborhood and a one year turnaround from project completion.

Since no two houses or projects are exactly alike and cost and value figures vary by city and region, numbers in the report should be used as benchmarks.

The report, which includes project descriptions, design tips and cost and value figures by region and city, was published in the October 1995 issue of Remodeling magazine. Reprints are available through Hanley-Wood, Inc.

Cost vs. Value
National Average

To order a reprint of Remodeling magazine's report, send a check for $8.95 to:

Hanley-Wood, Inc.
Attention: Jay Schneider
One Thomas Circle, NW - Suite 600
Washington, DC 20005
Order Information Line (202) 736-3444

Spend the money to make sure the addition blends with the existing structure's materials and geometry. Be sure there is a lot of natural light.

Rethink the outdoor access and view: Add a new glass door, enlarge windows and/or add a skylight. As for layout, peninsulas isolate; islands welcome. You can't keep your guests out of the kitchen, so you might as well make it an inviting place.

Use a granite countertop and any future buyer will love it. Large mirrors are inexpensive and create an illusion of larger space.

It is extremely important to match all exterior and interior trim details, roof pitch, and window type, style and spacing. Make sure it's big enough.

Source: Remodeling magazine's 1995-96 Cost vs. Value Report

The Remodelers Council of the National Association of Home Builders publishes a brochure that provides advice for consumers on selecting a reputable and qualified professional remodeler, Writing a clear contract, and avoiding and resolving disputes.

For a free copy of the brochure, send a stamped, self-addressed, #10 business envelope to:

NAHB Remodelers Council
1201 15^th Street, NW
Washington, DC 20005-2800

If you feel you're simply indulging yourself when you purchase flowers, plants and shrubs for your lawn or garden, here's some information that will make you feel good: Landscaping your home brings quite a few economic and environmental benefits.

First, the economic benefits. According to Money magazine research, landscaping is one of the best home improvements you can make in that it provides a 100 to 200 percent recovery value. This means if you spend $2,000 when you sell your home.

According to the American Association of Nurserymen (AAN), a well-landscaped home sells more quickly and at a higher price than does a comparable home lacking plants, flowers and trees. For example, one study in South Carolina found that lots with trees sold for $1,500 more per acre than lots without similar vegetation. One reason trees add value to a home landscape is that over the years, they grow from being a small $30 investment to a large, leafy $300 purchases, trees and other landscape plants appreciate in value. Trees also add economic value to a home by helping to reduce heating and cooling bills. Trees work as nature's air conditioner and heat pump, providing shade in the summer and sheltering your home from frigid winds in the winter.

The second primary benefit of landscaping is environmental. A mature tree removes 26 pounds of carbon dioxide from the air each year and releases approximately 13 pounds of oxygen. Plants also control water runoff, a major source of water pollution. They also slow erosion and allow the water to be absorbed by the soil. Trees provide food and shelter for birds and other wildlife and can reduce temperatures as much as nine degrees Fahren-heit. It's nice to save money and help the environment, but the most important benefit of landscaping may well be the pride and personal enjoyment it brings. So go ahead and indulge your love of trees, plants and flowers. It will pay off in many ways in years to come.