Any type of room addition will add value and usefulness to a home. Historically, the best areas to remodel for overall return in satisfaction and investment include kitchens and baths, bedrooms, living/entertainment rooms, and complete guest quarter additions.
Kitchens and Bathrooms
Kitchen additions or bump-outs are always a great idea. A completely separate kitchen room addition is not normally done unless it's part of an apartment addition. A kitchen expansion or new bump-out will increase the usability and space of what's often the most important room in the house. Returns on kitchen investments can be 60-80% depending on the design.
Bedrooms
The number of bedrooms in a home is an important factor in determining a home's value. The more bedrooms, the more valuable the home. Houses with 3, 4, and even 5 bedrooms are in higher demand. The overall bedroom size and whether the bedrooms have bathrooms will also affect the home's value.
Living/entertainment rooms
Living/entertainment rooms are often where families and guests spend their quality time together. The ambiance and features of this area can provide a functional, relaxing, and visually stimulating environment that creates lasting impressions and memories. A good open floor plan, audio/visual effects, and material selections can change the entire feel of the home. The added square footage usually brings 50-60% return on investment- but it's usually more about the quality of life.
Complete guest quarter additions
Over the last decade, there has been a noticeable trend towards 'guest additions' that include a bedroom, bathroom, small living, and even a kitchenette. Many families decide to add to their homes to provide a space for their parents or college-aged children. This way, there is privacy for everyone within the closeness of a family environment. This also provides great alternative cost savings to purchasing and living in a completely separate house or apartment. Many home buyers are specifically looking for these separate but connected living areas, and the value of this type of addition is clear.