Generally, home improvements that add to the curb appeal of your house offer higher returns when you sell. In the 2009 Realtor Magazine “Cost vs. Value Report”, siding projects, replacement windows, and adding a new deck topped the list of best value-added projects, with kitchen remodeling rounding out the top ten.

Adding or replacing siding

In addition to improving the appearance of your house and reducing maintenance and upkeep, the right siding can provide additional insulation, reducing heating and cooling costs. Of the various kinds of siding, adding high-end fiber cement siding recoups most value when reselling your home, weighing at a return on investment of 86.7%. Fiber cement siding comes in various finishes and surfaces, resembling stucco or wood, but is fireproof and termite resistant.

Mid-range vinyl siding offers the next best return on investment at 80.7%, followed closely by high-end foam-backed vinyl. The most popular type of home siding, vinyl comes in a wide array of colors and finishes, allowing a custom look for your home. Foam-backed vinyl offers especially good insulating protection, increasing your savings and making it an even better deal.

Replacement windows

Generally, high-end vinyl windows outstripped traditional wood replacements, but all of these home improvement projects gave a return on investment of between 76% and 79%. Again, replacing your windows can also save you money on heating and cooling your home, making this home remodeling project a financially sound decision even if you don’t intend to sell your home anytime soon. Be sure to look into Federal energy tax credits, available when you purchase and install certain kinds of high-efficiency replacement windows; they can save you hundreds of dollars on the cost of your project.

Decks

Installing a deck can recoup 81.8% of its initial cost to build; these projects can add a great deal to your enjoyment of your home and yard, as well. Maintenance-free decks of pressure-treated wood last longer; these are usually constructed of Southern yellow pine, though cedar decks are also popular.

Kitchens and bathrooms

Minor and major improvements to kitchens were also good investments, typically adding between 76% and 80% to the value of homes. Refacing kitchen cabinets is becoming more popular and can add more to your home’s value than more elaborate alterations; replacing outdated appliances with newer models was also cost-effective in most cases. While minor cosmetic alterations are often cost-effective, larger scale bath remodeling was not one of the top projects for recouping the initial investment.

Making your home a more pleasant place to live is always the most important reason for a home improvement project. But when planning to remodel or add on to your home, the money you can recoup may help you decide which home improvement project is right for you.