The home we just purchased was in need of updates, so we've done a few things already, but would like to do more as long as we can sell it at a much higher price in two or three years. My hope is to finish the basement, update the cabinets, build a master bathroom and closet, and update the current bathroom with nice fixtures, all of which would yield a four-bedroom, two-bath home with walk-out finished basement. Is it possible to get a good return on my investment if I follow through with these improvements?
With the current state of the housing market, it definitely pays to consider improvements carefully and spend your time and money on the most cost-effective of the bunch. Generally, that means avoiding anything that's too dramatic a change, too personalized to appeal to the general home-buying public, or reconfigurations that subtract precious living or storage space. That being said, it sounds like you have a few viable ideas on your wish list. Before making a move toward the local home improvement center, however, be sure to browse Remodeling Online's 2007 Cost vs. Value Report , which provides recent data on popular improvements and corresponding costs recouped, according to U.S. region.