Which home improvements give the best payback?

If you're thinking about remodeling your kitchen, or replacing your windows, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more.  Replacing windows adds to the look and feel of a home and also gets a nice return on investment.

The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won't get your money back. But if you're smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment.  Building a large addition that makes your home twice as big as the other homes on the block probably won't pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won't pay back as well as something more common to other homes in the neighborhood.

Another factor to consider is the cost of the improvements.  

The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:

• Kitchen remodeling - 90%
• Add a bathroom - 90%
• Bathroom remodeling - 80%
• Install central heating - 90%
• Install central air - 75%
• Add a deck - 70%
• Replace windows - 70%
• Add a room - 55%
• Build a pool - 45%
• Finish a basement - 40%