We talk to borrowers who tell us that they have just spent alot of money in updating and remodeling, and it quickly becomes obvious that they assume that the value of their home has just jumped by that amount. Unfortunately, it doesn't work that way. Some monies spent are simply maintenance and some are replacements for existing features that buyers would expect to be regularly replaced.

Much depends on what has been ungraded, improved, or remodeled. A kitchen remodel with high-end or more modern countertops, new cabinets, and new appliances tupically bring a higher value, but it won't be equal to the full cost of the remodel. Kitchens can cost between $50,000 and $100,000, but the value added is typically only about 80% of that cost. Put in a new deck and you can re-coup about 77% of the cost. Adding a second or third bath typically can net you an increase in value of 85% of the cost. Of course, these as averages, not guarantees.

What doesn"t add value? Landscaping, for one. Basic "curb-appeal" will always draw in prospective buyers, but when it comes to lush landscapes, prospective buyers will focus on the cost to maintain the landscaping and the time that will be needed to keep it looking so great. A lush yard is lovely, but most buyers won't pay extra for a "lovely yard,"  in this situation.

The basic maintenance projects, which aren't colorful and exciting, are the ones that are most important: Keeping the roof in good repair and making sure that the basement is dry. A new roof doesn't add value unless it represents am upgrade. Otherwise, it is just maintenance.

The market determines the values. What may add slight value in middle America may add substantial value in Seattle of San Francisco.