One of the discussions that I often have with potential sellers of homes is whether they should improve the salability of their home by doing different remodeling projects.  Normally, I recommend that they do repairs that would normally be required as the result of a building inspection.  But, doing major projects such as updating kitchens or adding bathrooms is another discussion in which case the cost may not be in their best interests.  

The "Cost vs. Value Report" published each year in conjunction with Remodeling magazine, gives you a guide on what various home projects will pay back at resale. The Cost data comes from Home Tech Information Systems which collects current cost information quarterly from a nationwide network of remodeling contractors and employs an adjustment factor to account for regional pricing variations.   

You can review the stats for 2010-2011 by clicking here.  The Missouri area is located in the W. North Central Region.

Construction cost figures include labor, material, sub-trades, and contractor overhead and profit. Resale values are aggregated from estimates provided by the National Association of Realtor members.   Also, remodeling costs will vary significantly by area.  Plus, it is important to realize that the final product in remodeling may meet the seller's criteria but perhaps not the buyer's.  In many cases, the best approach is to sharpen your price and let the buyer perform their remodeling that meets their standards.

Ron Gorman, Realtor Coldwell Banker Gundaker St. Louis Office 4320 Hampton Ave  St. Louis, MO  63109 Office: (314) 351-6005 Cell: (314) 570-5125 Fax: (314) 667-3016 Email: info@stlcityhomes.com