But this spring, when it came time to sell, he learned that the upgrades didn't matter to buyers desperate to snag a home -- any home -- in his neighborhood in Vienna, Va., a suburb of Washington. Over the past couple of months, Mr. Smith's house, as well as those of neighbors who did no updating, all sold for around $800,000 within hours of going on the market. "I didn't need to do anything special to sell my house," says Mr. Smith, a commercial airline pilot. "I feel I wasted my money."

As reliable as the daffodils, each spring the housing industry encourages owners to renovate their homes to enhance resale value. Remodelers talk about investing in new bathtubs or windows, while real-estate agents tout the value of new carpeting and countertops. It makes sense, at least on the surface. After all, with remodeling a $125.2 billion-a-year industry, and growing 7% annually, why not pour some money into upgrades, so your house will outshine your neighbor's?

But experts say that unless an upgrade is to correct something functionally obsolete -- say, to add a second bathroom in a four-bedroom house -- most remodeling projects return only a fraction of their cost. Studies by organizations ranging from consumer groups to trade magazines show that, on average, improvements made in the year before a home's sale return only about 70 or 80 cents on the dollar.

There are exceptions, of course. Studies have shown that larger, upscale remodelings in hot housing markets like Washington, New York or San Francisco can even turn a profit for the homeowner. But whether your house is in a sizzling market or one that is stagnant -- like Buffalo, Denver or Detroit, where a survey by Remodeling magazine found some projects yielding as little as 26% of their cost -- you have to be smart about the kind of improvements you undertake.

The trick is to bring your home up to neighborhood standards, but no higher. When you're planning to move in a year or two, "don't decorate to your personal level of perfection," says Raleigh, N.C., architect Sarah Susanka, author of "The Not So Big House." Many homeowners get carried away, putting in marble tile when ceramic would do, or buying a $500 faucet for a basement wet bar that few people use. "People tend to remodel things that are already perfectly acceptable," says Nashville, Tenn., appraiser Danny Wiley.

But how do you know the difference between an improvement that's excessive and one that will help sell your house -- and maybe pay for itself?

We asked a number of experts to tell us which modest upgrades would bring the best returns in today's market, and which are a waste of money. Since remodeling for resale value is a dicey proposition, we limited our inquiry to projects or products that cost less than $10,000.

Our sources include Mr. Wiley and Ms. Susanka; Chicago remodeler Jeff Radtke; Frank Anton, president of Hanley-Wood, a Washington trade magazine group that includes Remodeling; Henry Casden, a Monterey, Calif., real-estate broker; New York designer Samuel Botero; and Jennifer Gilmer, a kitchen designer in Washington. Here are their suggestions.

DO IT

Granite Countertop

-- Price: $3,600 for 90 square feet.

At $40 a square foot or more installed, granite is about 40 times as expensive as plastic laminate. But upscale home buyers have come to expect it. The good news: Because home centers buy it in bulk now, prices have fallen as much as 20% over the past two years. Although honed, light-colored granite is trendy, Ms. Gilmer suggests sticking with polished black stone. It's elegant-looking, and more durable.

Beige Carpet

-- Price: $6,375 for 2,500 square feet with a 10-year wear warranty.

Yes, how boring, but next to a paint job, nothing makes a house look fresher. Though the Federal Housing Administration demands a minimum of 3/8 inch pad and 23-ounce density carpet, that looks and feels thin. Instead, choose a half-inch pad and a 27-ounce density. And don't stray from earth tones. Ms. Susanka says one client insisted on replacing her worn-out "awful" bright green carpeting with the exact same shade. The house didn't sell.

Pull-Out Kitchen Faucet

-- Price: $300 for a European-style chrome faucet.

Faucets occupy center stage in a kitchen, so they attract buyers' attention. Trendy finishes like brass and nickel cycle in and out of style, so stick to standard polished chrome. Gooseneck styles high enough to put a pot under are currently popular, but pull-out styles with a hose are the most versatile. Forget redoing bathroom faucets, though. They're more a matter of personal taste, and a buyer may just junk yours.

Sculptural Cabinet Pull Knobs

-- Price: $3 a knob.

Kitchen cabinets are so expensive and subject to the whims of fashion, it's not worth changing them if you plan to move soon -- especially since they can be painted, refinished or refaced for far less cost. But switching handles is a cheap and effective way to update, especially since sculptural pulls in iron or bronze that resemble twigs, tiny forks and spoons, and even peas-in-a-pod are popular now. "They catch the eye like jewelry," says Mr. Botero, the New York designer.

Melamine Closet System

-- Price: $1,600 for a walk-in closet with three rods, six shelves and five drawers.

Coated wire systems are OK for mid-range homes, but upscale buyers shun them, says Mr. Anton, the magazine publisher. On the other hand, furniture-finished wood is overkill if you're remodeling for resale. Spring for shelves made of melamine-surfaced particleboard or medium-density fiberboard. Melamine is a plastic laminate available in different finishes; Mr. Anton recommends a wood-look finish. Most of these systems are modular, with a series of holes along the sides so you can adjust shelves and rods. Jewelry drawers and pull-down shoe racks are inexpensive add-ons that impress buyers.

Synthetic Entry Door

-- Price: $1,730 for a fiberglass door with beveled glass inserts and two side lights.

Front doors are the first things a buyer sees up close, so they shouldn't look dumpy. Five years ago, most synthetics looked fake, but improved veneers and finishes have made fiberglass and steel doors resemble the real thing. And though fiberglass dents and steel rusts, both provide better security with less maintenance than solid wood, especially if the door faces the sun. "Wood doors warp and weather," says Mr. Casden.

Laminate Wood Floors

-- Price: $1,630 for a 15-by-15-foot room.

Made of either thin wood veneers encased in plastic, or photographs of wood on a plastic base, laminates have also become more realistic-looking in the past couple of years. Some are even embossed on the surface to imitate wood's texture. Because you can wet-mop it, laminate has become more popular than real wood for areas subject to spills, like kitchens and basements. It can't be refinished three or four times like real wood can, but if you're moving soon, who cares?

Ventless Gas Fireplace

-- Price: $400 for solid oak corner-style fireplace that runs on canned gel fuel.

Though hardly essential, fireplaces add a lot of romance to a home, even in warm climates. But buyers don't really want a fireplace in the family room anymore, where it competes with the television as the room's focal point. Rather, they prefer one in the master suite, if possible visible from both the bed and the bathtub. Some new models don't need natural-gas hookups. Bonus: They're portable, so if the buyer doesn't like it you can take it with you.

Body-Spray Shower Head

-- Price: $2,383 for shower tower with two telescoping overhead sprays, four moveable body sprays and a hand-held spray.

Multiple-shower-head systems do everything from misting to massage. They're still rare enough to "get a buyer's heart beating faster," says Mr. Radtke, the Chicago remodeler.

Garage Storage System

-- Price: $220 for hanging storage wall starter kit with 11 hooks, a wire basket and a shelf.

A recent survey by real-estate brokerage Century 21 found that the garage is the most important amenity to buyers, outranking a large kitchen, formal dining room or big backyard. And what they prize most about the garage is its storage capacity. But you don't need to add pricey cabinets, which can easily push the bill for a storage wall into the thousands. Just give buyers the idea of how they can personalize, while you get your hoes and rakes off the floor.

SKIP IT

Wet Bar

-- Price: $1,875 for a 35-inch-wide teak wet bar with stainless-steel sink.

Novel in the '80s, wet bars have become cliches now. And many homeowners who've had them for years find that they use them more often to fill up watering cans for their houseplants than to wash martini glasses. Unless you plan to turn a corner of your basement into a wine cellar, don't bother. "Buyers just don't care about them anymore," Mr. Casden says.

Concrete Countertop

-- Price: $9,000 for 90 square feet.

They're trendy, they're pricey and they're everywhere -- and many buyers just hate them. After all, they need resealing twice a year and are prone to cracking. Moreover, they tend to bring out the inner artist in homeowners, and that's not necessarily a good thing. Owners have been known to incorporate everything from computer chips to toy plastic people into the design.

Chandelier

-- Price: $3,591 for a 40-inch-high traditional-style Italian crystal chandelier finished in gold leaf.

If you put in crystal chandeliers, you've automatically alienated buyers who like contemporary pendants, and vice versa. "People make outrageous mistakes here, and expect the next buyer to pay for it," Mr. Wiley says. Stick with simple recessed can lights, or better still, plug-in lamps that move with you.

Structured Wiring

-- Price: $5,000 for rewiring a 2,500-square-foot home.

Generally speaking, electrical upgrades bring small returns, since they're invisible to buyers. But in the late '90s, structured wiring for computers, cable television and telephones became one of the most requested upgrades in new-home communities. Then wireless systems came along, and people started ditching wired phones for cellphones. While no one knows if these events will eventually make structured wiring obsolete, it's just not the hot button it was a couple of years ago.

Sauna

-- Price: $4,220 for a four-person cedar sauna with wall-mounted heater.

In vogue when everyone was outfitting exercise rooms in the '90s, their appeal has run out of steam, Mr. Radtke says. Even in chilly Chicago, he says, buyers aren't clamoring for them anymore.

Low-Flow Toilet

-- Price: $290 for 1.6-gallon pressure-assisted round-front toilet.

Manufacturers at trade shows flush ping-pong balls down low-flow toilets to prove that they work, and the toilets have certainly improved over the past two decades. But that hasn't changed the public's distrust of them. Legally, you'll have to put in a low-flow model if you're adding a bathroom -- according to the 1995 National Energy Policy Act -- and it's the green thing to do. But if you're upgrading an existing bath and happen to have an old, working 3.5-gallon model, some buyers will consider it a prize.

Krypton-Filled Triple-Pane Windows

-- Price: $7,220 for 10.

From an energy-saving standpoint, krypton- or argon-filled triple-pane windows are smart choices if you plan to stay in your home a long time. But if you plan to move in a year or two, don't expect buyers to shoulder the extra cost for some gas and dead air. Some relatively inexpensive vinyl windows perform acceptably, but "shout cheap," according to Ms. Susanka. "Let the next owner replace the windows," she says.

Heated Floor

-- Price: $450 for 15-by-15-foot slab-on-grade room.

A hydronic floor-heating system consisting of tubes running through concrete makes bathroom floors feel toasty. But since buyers can't see it when they tour your home, "they'll be 'Yeah, whatever,'" says Mr. Radtke.

Lever Doorknob

-- Price: $355 for lever entrance set in finishes including brass, bronze, nickel and chrome.

New doorknobs on an entry door can make your home look inviting, but stay away from lever styles. Even though they're used often in new homes and are useful for people with arthritis, Mr. Casden says many buyers dislike them because they can catch on pockets.

Indoor Swim Spa

-- Price: $5,000 for a 14-foot-long spa.

Small prefab pools that let you swim or walk against a current are the latest successors to hot tubs. They're unusual enough to attract some buyers, but others could be turned off by the need for regular maintenance and worries about leaks and humidity.

"Unless you really want to swim year-round, it's a bad move," says Mr. Radtke.

Article provided by Real Estate Journal.com.