In the real estate world, there are two types of home renovations: those that increase the home value and those that don't. Some renovations are just for the enjoyment of the owner, like painting children's rooms in favorite colors. But for big-ticket items, it's always a good idea to choose home improvements that both make you happy and significantly increase the resale value of your home. Whether you're crafting a dream home or flipping properties, it pays to understand renovation ROI.