Use Zillow.com to research the estimated value of the homes in your neighborhood. Evaluate how your existing house compares to the neighborhood average and what the upside potential will be with improvements.
If you are remodeling an existing living space then the increase in value is derived from the value or cost of the improvements themselves. If you are increasing the amount of living space with a bump-out, addition or garage/basement conversion then the projected increase in value is based on the incremental square footage combined with the value of the improvements you are making. Doing this analysis will help you determine the upside potential for the value of your house and will also help you to establish a cap on your remodeling budget to avoid over-investing relative to what the market will bear.