Hi Taina,
Just sold a property in Adair. It's probably close to where your property is. I sold it for $275k a few weeks ago. You probably received my "SOLD" flyers. We have a lot of demands in the area because it is affordable. It may or may not be worth refacing the kitchen and bathroom. I would like to help you. Do you want me to provide you with market analysis?

Charita King
562-276-8681
Century 21 My Real Estate
charita_king@yahoo.com

I can't comment on your geographic area in particular, but will tell you that most buyers want a house that is updated and move in ready regardless of the zip code. Buyers often overestimate the costs associated with improvement projects and will reflect this in their offer. Generally, sellers will get a greater return by making the changes prior to listing--as long as you don't overspend. Just make sure you make choices that are neutral and will appeal to your targeted buyer.

Foreclosures are, and will be competition, I would start with touring around five houses, see how yours competes, stacks up. Houses with 2bd, 1ba, less than 1000 sq.ft. might be selling under 185k. Interview three Realtors and see what they say. Identify the top five negatives in your house. Your buyers will most likely focus on those. Reduce risk by increasing you knowledgre on the subject.
If your kitchen and bath are on the top five list, you are not underwater, then consider it. I am sorry, but I give the buyer and their agent more credit than a paint and carpet whitewash. They might be able to paint and carpet the 2bd, 1ba foreclsoure down the street and bank 15k savings.

Spend your money on new paint, carpet, landscaping,and things that make your property show better. Save your renovation money for your new home purchase.