Through a survey of real estate professionals, the report tries to measure how much and how fast the expenditure will add to a home's resale value. But the results obtained from these surveys is highly variable, extremely suspect and fraught with potential conflicts of interest, says Harney. Some of the results don't make sense from a state or regional perspective, either. That same renovation, however, returns a whopping 125 percent in New Haven. The margin of error might have something to do with the methodology, says Harney, which isn't backed by actual sales transactions or appraisals.
Similar discrepancies show up in nearly every state and region.
Compare your home to similar homes in the neighborhood, and apply common sense to the decision. For example, if your home has only one bathroom while most homes have two or more, then it might make sense to install one. Maybe a half-bathroom will suffice. 2 - Expensive Isn't Always Better. Sometimes the cheapest renovations offer the highest returns.