Will the money I put into my remodel or addition be reflected immediately in the value of my house?

I do a lot of small scale residential remodels and additions and this question comes up very frequently.  The simple answer is, no.  In fact this has almost never been the case in modern history.  Just recently the “Cost vs. Value” has started to make some forward progress since the beginning of The Great Recession but even now currently stands at 60.6%.  That is, that percentage of the money you put into your house will be reflected immediately in its resale value.

So, I always tell my clients that this type of investment should be considered a long term one, and not short term “flip it” one.  And, in my opinion, “flipping” should be left to professionals with a lot of experience.  Even then, it can be very risky.  Your main investment should be thought of in terms of the added daily quality of life it will bring.  This cannot be easily measured.