Your list of home-improvement plans for 2005 might look like this: Finish the basement. Expand the master bedroom. Add a sunroom. Replace the windows. Redo the kitchen.

Whoa, slow down. Focus.

There are areas where you should concentrate your remodeling dollars if you want to increase the value of your home.

"The kitchen and bathroom are the areas to upgrade," said Thomas Stevens, president-elect of the National Association of Realtors based in Washington, D.C.

The association's most recent Cost vs. Value Report estimates most of the money spent on moderate upgrades in those two rooms will be recouped. The report can be used as a guide to help prioritize remodeling projects.

In the kitchen, start with the countertops. Keep in mind expectations are rising. Realtors and remodelers have noticed that high-quality materials, once reserved for large expensive houses, are making their way into modest homes.

"People, even on a tight budget, are putting in granite or the more expensive Silestone [engineered stone]," says Randy Metzler, owner of Metzler Remodeling and president of the Kansas City, Mo., chapter of the National Association of the Remodeling Industry. "I haven't priced Formica in about four years."

Brad Baker, who buys, renovates and sells homes as investments in the Kansas City area, uses granite countertops in nearly every kitchen he remodels because he knows he'll get his money back. Stainless-steel appliances also are a good upgrade.

But buying expensive kitchen cabinets isn't such a good investment, Baker says, because at first glance it's difficult to distinguish custom-made from budget options. Usually he'll paint cabinets or replace the hardware. If they're too beat up, Baker will buy new ones from a home-improvement store.

"Stock cabinets look terrific these days," Baker says. "They come in nice colors and finishes."

When it comes to flooring, people should throw away vinyl. People looking at houses usually groan when they see vinyl in bathrooms and kitchens because it makes a house feel dated, says Gregg Davidson, branch manager of the Reece & Nichols Realtors Plaza office.

"People should go for timeless and not for the hot new thing unless they can afford it," Davidson says. "They should think of things that are natural, that wear well."

House hunters are typically looking for hardwood or tile floors in kitchens. In bathrooms, people want low-maintenance flooring and wall surfaces, says Jan Burchett, executive director of the Kansas City chapter of the National Association of the Remodeling Industry. That means using tile with darker grout on the floor and one-piece slabs of marble or solid surfaces in shower stalls. Baker updates lots of master bathrooms, often installing dual vanities because so many couples want them.

Most house additions, such as creating a sitting area in the master bedroom, aren't good investments for resale. However, additions that enhance outdoor living are red hot — people tend to recoup all costs for adding a deck or patio when they sell their house, Stevens says.

Before adding rooms or embarking on other major renovations, consult with a remodeler and seek an assessment of resale value from a real-estate agent who analyzes the neighborhood.

Paul Steinberg and Cynthia Atwood-Steinberg decided that a major remodeling job, including additions, was worth the money. The cost of renovations for the 1940 stone cottage in northern Leawood, Kan., was about the same price as the house, but it is in a neighborhood where property values are rapidly rising.

Before gutting the first floor, the couple lived in the house a few years to gauge where to spend their money.

Because they entertain a lot, they decided to expand their small galley kitchen and add a family room where the single-car garage was.

"We could have moved to a big new house somewhere else," Atwood-Steinberg says. "But we've lived in one of those before. It didn't have the character and it never felt like home."