Top 5 ROI Home Improvements

By Mary Butler

Pop went the housing bubble. But your dreams of fixing up your home and selling it for a healthy profit don't have to burst. Increase your home's value with these smart steps.

1. Build a deck. It's an inexpensive way to add living space--about $20 a square foot versus $150 or more per square foot to add a room to your house. According to Remodeling magazine's "Remodeling Cost vs. Value Report 2007," a wood deck reaps an 85 percent return on investment.
2. Update your kitchen. A full-fledged kitchen renovation--costing anywhere from $20,000 to more than $100,000--can be hard to recoup in the short-term. New countertops, sleek appliances, fresh paint, and modern cabinet door pulls and handles cost far less and add appeal and luster without breaking the bank.
3. Replace old windows. Energy efficient windows lower heating and cooling bills significantly and are high on the "must have" list for today's home buyers, who are seeking more green options. With a price tag in the $10,000 range, window replacement is a long-term investment.
4. Beautify bathrooms. A clean, modern bathroom--with stylish faucets and hardware, new paint, a reglazed tub, and updated flooring--can make your whole house seem nicer. Whether you undergo a full remodel or simply replace key components, the "Remodeling Cost vs. Value Report 2007" estimates the return on a bathroom investment at 78 percent.
5. Ditch dated home accents. This means replacing old carpet, stained and worn-out flooring, wallpaper, light fixtures, and tired landscaping. Clean up clutter and strive to give your home a fresh, clean, streamlined look inside and out.