The kitchen is the most important room in the house since it's where much of the family interaction occurs. The average return-on-investment for improvements to the kitchen ranges from about 80 percent to 93 percent with average costs at $15,000 and up. If you don't know where to start, try adding new tile flooring, re-facing old cabinets, and/or updating appliances to new energy efficient models.

Bathroom renovations can yield a return of between 85 percent to 90 percent, with costs starting around $10,000. Adding a new bathroom can return as much as 85 percent, especially if you only have one bathroom to start with. And since it s more difficult to sell a home with only one bathroom, adding a second bath can make your home significantly easier to sell. Some good improvements include installing double sinks, tile floors and new bath fixtures and faucets.

Making home improvements can be a big undertaking. Larger improvements could include adding a fireplace, building a deck or patio, or adding a new heating or cooling system. However, you don't have to spend huge bucks to upgrade the look of your home. Smaller, less expensive improvements could include replacing old doors or installing a ceiling fan. Cosmetic improvements can also go a long way in the minds of prospective buyers.

There are some improvements that rarely pay off, such as adding a swimming pool. These improvements are fine if you and your family will enjoy them, but keep in mind that they rarely increase the value of your home. They may even make your home more difficult to sell.

You should also avoid making too many expensive improvements that go beyond what is typically found in your neighborhood. You don't have to cut corners, but owning the most expensive home on your block can be another obstacle when it comes time to sell your home.

One last piece of advice, avoid getting too fancy. Everyone's tastes are different, so choosing colors and materials that appeal to a broader range of people will make it easier when you need to sell. .