Economics of Home Renovations

There are only two reasonable conclusions from reading this study by G. Stacy Sirmans and David A. Macpherson (on the effect of various home features & renovations on resale prices):

  1. Home buyers should only consider fixer-uppers. That is where they get the best price, and that is how they increase the likelihood of a higher post-renovation resale price.
  2. Home sellers should replace all non-essential rooms with bathrooms — air-conditioned ones are best.

The overall findings are summarized below: