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With the current state of the housing industry, many potential home sellers are wondering what to do to make their houses more likely to sell. Should you take on major housing improvements, like installing new siding or finishing your basement? Or should you settle for more minor improvements?

According to the Statesman, the smaller improvements are better:

Even a minor, mid-range kitchen remodeling project in the D.C. area would cost about $21,000, and a major “upscale” kitchen upgrade would cost $110,521, according to Remodeling magazine’s 2007 Cost vs. Value report. That report seeks to estimate the costs of common remodeling projects and how much of the investment will be recouped at resale.

“To sink those kinds of dollars into a property that you are planning on leaving is very risky,” said John Wuestman, a broker and an owner of suburban ReMax Advantage Realty. “Any thought of recapturing 100 percent of that isn’t true. … It’s more like 70 to 75 percent.”

Payoff for recent remodeling projects at resale varies depending on the project, Remodeling found. That mid-range kitchen upgrade, for instance, would add about $17,000 to the home’s resale price, recouping about 82 percent of its cost. The upscale version would add about $85,000 to the bottom line, for a 77 percent payoff on investment.

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It is logical to assume that when the house market is extremely shaky, then home improvement investments will take a sharp dive as a result. But the Pantagraph is reporting that participation in home improvement shows has nearly doubled over the last few years. Also the business of heating, ventilation and air conditioning hasn’t declined at all. As one of the people quoted in the piece said, ““HVAC is recession-proof.”

The mood seemed to be in favor of maximizing what you already own in a market when home sales are soft nationwide, vendors noted. People were looking for ways to cut their utility bills and add new amenities, such as sunrooms.

“People are definitely investing in their homes and fixing up what they have,” said Kevin Gattung, special promotions manager for Peoria Siding and Window.

He said attendance has doubled at the shows he has attended in Illinois so far this year.

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According to Reuters, home improvement retail stores are continuing to post weaker results, especially as consumer spending falls.

Home Depot Inc, Lowe’s Cos, and Sears Holdings Corp are the major companies expecting low fourth-quarter earnings.

While falling home sales and construction have been a major hit to results over the past year, these retailers have also been hurt as consumers aware of falling home prices pulled back from big-ticket projects such as kitchen remodeling.

There’s no indication in the article whether there will be any lay-offs.

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