We sold our first home in Florida after 15 months that seemed more like an eternity. We had built the house 10 years before in an up-and-coming subdivision that remained, a decade later, heavy on the “coming” but short on the “up”!

It’s always tough to sell a “used” home in an area where there is constant construction, because buyers have their pick of brand-new houses. After that experience, we know just what kind of dedication, and even creativity, it can take to sell your home at a good price with a minimum amount of hassle.

But wait: Are you sure you want to sell your house? If you’ve been offered a job in another city, of course you have to sell. But if your family is just outgrowing your present home, it might make more sense, money-wise, to do some renovations or build an addition, especially these days when so many homes are for sale all across America.

Should you renovate or sell? This is a question that can be answered with mathematics.

Dolan Tip: Find out what the average selling prices of houses in your neighborhood are at houseappreciation.com. If a renovation would raise the market value of your house so much that you’d exceed that average price by more than 10%, don’t renovate—instead, sell and move because you’ll find it’s very hard to earn your investment back. You’ll either keep your house on the market for months, maybe years, or you’ll accept a lowball offer and take a loss. House hunters who come to your neighborhood will, if they’ve been following our advice, be reluctant to buy your house if it’s the best house in an okay neighborhood.

On the other hand, you may find that adding a new bedroom and bath to your house will still keep your market value in the ballpark in your neighborhood.

If you’re thinking of making improvements, you might want to start with the ones that add the most resale value. This isn’t always the best strategy. But if you’re considering selling in a few years, these are the improvements that will give you the most investment bang for your buck, according to data from Remodeling magazine:

1. Minor kitchen repairs. A minor kitchen remodel will give you back all of the money you put in plus about 87%. With a major kitchen remodel you’re going to get a bit less, because you’ll have more expenses.
   What constitutes a “minor” repair as opposed to “major”? We consulted home repair expert Lynda Lyday, a licensed carpenter.
   “A minor repair is painting, wallpapering, tiling, putting up cabinets and countertops yourself,” says Lyday. “Major is breaking out walls, putting in an island, anything that requires calling an electrician or plumber, or putting in major appliances.”
2. A two-story addition earns back approximately 83% of your expenses.
3. An additional bathroom earns back about 81%.
4. Major kitchen remodeling earns back 80%.

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