You might have heard about homeowners who've greatly improved their net worth by remodeling homes and then selling them. But, while remodeling can add value, there is no guarantee that a future buyer will pay you enough to recoup your investment.

In particular don't over improve your property for the neighborhood. Buyers are not willing to pay more than the property was worth on the open market.

Some homeowners fall into the trap of thinking that their home is worth what they paid for it, plus the money they've invested in remodeling projects. This logic is often faulty, and can result in unwise investments.

Replacement cost value is not the same as market value. Market value is the price a ready, willing and able buyer will pay for a property. This is the only value that's relevant when you're selling your home. Replacement cost value is an important consideration when you've evaluating how much insurance coverage you'll need to replace your home if it burns down. But, it may have little bearing on the selling price of your home.

To realize the most from your remodeling efforts, stick to classic designs and finishes. Trendy designs may look outdated five or 10 years from now when you decide to sell.

Don't invest in a major renovation if you're planning on selling in the near future. It's highly likely that you won't be repaid for your investment.

Stick to cosmetic facelifts if the sole purpose of your investment is to fix your home up for sale.

To view Chicago area houses and condos for sale, go to:
http://www.chitownads.com/index.php?kid=5&catname=Real+Estate

To sell or rent your Chicago area condo or house, go to:
http://www.chitownads.com/index.php

For Chicago neighborhood and area information, go to:
http://chitownads.com/chicago/relo/index.php