To paraphrase William Shakespeare: to remodel or not to remodel, that is the question.  I often speak with homeowners comtemplating "fixing up" their home in order to get top dollar for it when they sell.  Given the recent slowing in the market this poses a problem.  With home price appreciation leveling off to normal year over year increases instead of the 20%+ increases of the past couple of years the idea of plowing money into a home in order to sell it needs to be looked at very carefully. 

First, it is always prudent to put the best face on your property when preparing it for sale.  Things such as colorful flowers out front and a spruced up yard add to your home's initial curb appeal which is important...and generally inexpensive.  Next, fresh paint can be done inexpensively and will add to the appeal of your home.  Avoiding clutter and removing photos that personalize your home to you will enable buyers to envision it as their home. 

Now, comes the hard part.  If the exterior siding is worn and weathered, your windows are old inefficient single pane, your floor coverings and window shades looked fabulous in the 1970's, or your kitchen or bathroom(s) are outdated and perhaps not as functional as they ought to be then you are probably considering a much greater expense.  Will you be able to recapture that expense?   Depending on materials used, the extent of the remodel (purely cosmetic or involving structural issues as well), length of time until sale, and amenities in neighboring homes you may or may not be able to get 100% of your money back.

One interesting source that compares construction costs with resale value in 60 markets nationwide each year is RemodelingMagazine.com.   Of course, being a nationwide survey you need to keep in mind that values for various projects will vary regionally. 

If you are remodeling for yourself and your family then these considerations are ancillary because it is about creating the environment you want.  But when resale value is a major factor in your decision to remodel, the best course of action is to consult an experienced Realtor® about the amenities and home prices in your neighborhood and speak with a local contractor to get an estimate of costs.