Make improvements to your home to make it competitive. All other things being equal a buyer will purchase the home with up-tp-date kitchens, bathrooms, and other upgraded amenities.  Remodeling can make your home more competitive, and the cost of many improvements can be recovered when your home sells.

Remodeling your home to bring to up to today's standards will in many cases pay for itself when you put your house on the market.  However, by no means will every project return all or even part of the money you put into it.  In fact an extravagant improvement can even make your home harder to sell.

In every neighborhood the limits on what a home can sell for are well-defined.  If the houses range from $200,000 to $225,000, no matter how many rooms, baths, hot tubs, fireplaces, or skylights you add, your top resale price will be close to $225,000.

To get an idea of which improvements pay the best returns Money Magazine consulted a large national real estate appraisal firm.  The appraisal firm evaluated thousands of comparable homes sold over a three-year period, interviewed dozens of independent appraisers, real estate agents, builders, architects, and homeowners around the country, and the consensus of the top ten common home improvements in order of their return is listed below.

Top 10 Home Improvements

1. Remodeled Kitchen  (Average Value: 80-120% of cost)
2. Extra Bathroom  (Average Value: 75-100% of cost)
3. Fireplace  (Average Value: 70% of cost)
4. Deck or Patio  (Average Value: 50-70% of cost)
5. Central Air Conditioning  (Average Value: 40-80% of cost)
6. Additional Room  (Average Value: 50-70% of cost)
7. Basement or Garage Conversion  (Average Value: 30-60% of cost)
8. Aluminum Siding  (Average Value: 30-50% of cost)
9. Swimming Pools  (Average Value: 20-50% of cost)
10. Recreation Room  (Average Value: 30% of cost)