By Danielle Rexrode
THE ERICKSON TRIBUNE

When it comes to home remodeling, all improvements are not created equal. The right home improvements can pay off in the long run, but some could put you in the red. So how can you tell the difference?

Current standards
According to Stacey Freed, senior editor of Remodeling magazine, exactly how much you’ll recoup from your home improvement costs depends on several factors, including the direction of the broader housing market, the value of the homes in your neighborhood, when you plan to sell the home, and the nature of the project itself.

“It’s about keeping up with the Joneses, but not exceeding them by too much,” says Alan Hummel in an interview on Forbes.com. Hummel is a chief appraiser of Minneapolis-based Forsythe Appraisals and former president of the Appraisal Institute, a membership organization of professional real estate appraisers.

“If something isn’t up to the standards of other houses in the neighborhood, investing in improvements will bring a big return. If it’s already at that level, spending more may help you sell your home faster, but it won’t have a high rate of return,” he says.

True value
Kendra Todd, broker of the Florida-based Kendra Todd Group and host of My House is Worth What? on Home & Garden TV (HGTV), says there are five home improvements that will give you the biggest bang for your buck:

1. Upgrade the kitchen: Freshen up your cabinets with a coat of paint, or get new ones. Replace the countertops. Install a new sink, cabinet hardware, and flooring. Paint the walls using a shade that complements your tile or countertop colors. Don’t install new appliances unless yours are very old and worn.

Likely cost: $20,000–$25,000