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Remodeling Online's 2006 Cost vs. Value Report
1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
The return on investment on a mid-range bath modernization is 102% of its cost. Kitchens can add about 90% of their costs to the home's value.

Another home improvement that can pay off is window replacement. Not only does this job return about 90% on investment when the house is resold, it saves on energy bills every year.

As a rule, upscale improvements pay off at lower rates than mid-range or inexpensive ones. And making a house bigger and more luxurious that those of your neighbors will also cost a lot more than they'll return when the house is sold.
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