If you’re thinking about remodeling your kitchen or bathroom(s) prior to selling your property, you will probably want to get your investment back when you sell your property.

You must consider, however, that when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom renovations will usually realize a nice return on investment – typically 90% or more. Things like adding rooms or installing a pool tend to pay back the least.

There are a number of factors that go into determining how well an upgrade/renovation project will pay back. Payback value depends a lot on the current market conditions in your area. If the real estate market is hot and properties are selling fast you can expect a higher payback value than you would get in a slow or depressed real estate market.

For Vacation Rental Properties the type of home improvement project you plan to do and how it fits in with the features and amenities of other vacation rental homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you may not get your money back. But if you’re smart about what you do, you can realize a good return on your investment.

The payback will be better on improvements that are in demand such as adding a second or third bathroom, adding air conditioning or remodeling the kitchen will provide a reasonably high return on investment. Building a large addition that makes your property twice as big as the other homes in the area probably won’t pay back very well nor will an improvement which is heavily customized to your wants and needs provide a reasonable return on the investment at the time of sale.

Another factor to consider is the total cost of the improvements related to the asking price of the property. Obviously, if you can do some or all of the work yourself you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.

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

Kitchen remodeling – 90%
Addition of a bathroom – 90%
Bathroom remodeling – 80%
Install air conditioning – 75%
Add/repair/replace a deck – 70%
Replace windows – 70%
Add a room – 55%
Install a pool – 45%

Of course, these figures are approximations and should NOT to be construed as guarantee in terms of return on investment.