But when it comes to resale value, all home improvements are not created equal. As a rule, kitchen remodeling projects and bathroom additions almost always pay back 90 percent or more of their costs. Other improvements fall somewhere less. If the market is slow, expect to see less payback than you would in a fast market. Converting a basement into a family room yields the smallest return on the investment.
Projects can be large or small.
Sometimes, the cumulative effect of small projects can pay back more in resale value than that of larger projects. Large improvements involve adding or upgrading living space. Today's fad may be tomorrow's standard. Decks may not have paid back very much in resale value decades ago, but as decks have become more desirable, their resale value has increased. The price of home improvements fluctuates depending on economic conditions and region.