If you’re thinking about remodeling your kitchen or updating a bathroom, you want to get your investment back when you sell your home. 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. Things like adding a room tend to pay back the least.

There are numerous factors that go into determining how well a project will pay back. Payback value depends a lot on the current Panama City Beach real estate market conditions. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.

The type of project you do and how it fits in with other homes in the neighborhood can have a big influence on payback too. If you put your money into the wrong type of improvement or over improve you won’t get your money back. But if you're smart about what you do, you can actually 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. A good rule of thumb is you want to be in the cheaper half of houses in the neighborhood rather than the more expensive half.

Another factor to consider is the cost of the improvements. If you can do 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. However, if you can’t deliver the same quality of work as a professional you should not even attempt. A flawed update will turn buyers off because they will wonder what else is flawed and has there been any other corners cut. Studies show for every flaw a Buyer sees they think there are 10 they did not.

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%