Foreclosures are below market a lot and if you upgraded it, should be easier to sell to those who want a move-in ready home. But price is still king and again, can't expect a lot of appreciation in a still low market. However, many buyers want a move-in ready home and lending on a property that is not move in ready can be difficult. So, that gives you a leg up.
Remember and keep in mind that what you want now to buy will be at a low price too and factor that into your price thinking.