Projects That Pay

When it comes to your home, every new light fixture, appliance and even the kitchen sink can become a gut-wrenching investment decision. What change will increase the value of your home more: The sensible beige tile or the fuchsia with hand-painted details that you really want?

These decisions have become even more significant during a housing slump that has stoked competition among home sellers. For people on a budget, finding the most effective way to continue to increase the value of their home depends in part on the size of the property and its age, contractors and architects say.

"If you live in a $1 million home, $10,000 is not going to cover the cost of new kitchen cabinets or do anything for the master bath," said Bob Weickgenannt, president of Starcom Design Build in Columbia. "But if you live in a home that's worth $450,000 to $650,000, you can probably do your countertops and your master bath."

Before launching a project, owners should consider whether they plan to stay in a home for a short time -- less than three years -- or are making a long-term investment, said David Lupberger, a home improvement expert for Service Magic, a contractor referral service.

"If you are in there in 10 years, does it matter what the return on investment was?," he said. "They are putting espresso makers in bathrooms, heated floors, heated towel bars. If that is the kind of thing you are looking for, then go for it."

The calculations are different for people who may be selling within three years, Lupberger said. The time-consuming task of customizing a home to personal tastes should take a back seat to more generic improvements that could bring in a buyer, he said.

"Why would you put all of that energy into a place you're not committed to?," he said. "The emotional investment is not there."

It can take years to recoup the cost of a renovation, so consider it a long-term investment, contractors said. In the Washington region, remodeling a 5-by-7 foot bathroom, including replacing all fixtures, costs $16,028, according to Remodeling magazine's 2007 Cost vs. Value report. It will increase the resale value $12,932, or 80.7 percent. A minor kitchen remodeling costs $21,109 and will recoup 81.9 percent of its value.

"When the market was good, the return on a kitchen [remodeling] was 150 percent right away," said Tim Burch Jr., president of Burch Builders Group in Warrenton. "I think in the long run, you definitely get your money back. And you have to remember, you get to live in it. That's the real advantage of it."

And don't forget landscape upgrades, said Stephen Vanze, a principal with Barnes Vanze Architects in the District.

"Landscaping has a big impact on the value of your home, it has a big first impression," he said. "Your yard is the biggest room in your house, if you think about it."

Here are some suggestions on some investments you can make in your home with a $1,000, $10,000 or $20,000 budget.