I’m looking to do a couple of home improvement projects within the next year and I am curious on what kind of impact that it will have on my home’s value? Elyse, Dexter

Very good question and one that is asked by many of us homeowners in 2010, because the rules have changed in our new economy and the answer may differ than in years past.

If you're planning to put your home on the market this year, the highest return for home improvements projects are consistent with previous years.

“The highest return for your buck has always been paint, soap and water”, says Plymouth real estate agent Sandi McColay. “It also makes sense to spend a $100 a month to de-clutter and put all junk in a storage facility”.

Figure 1 by Jamie and Marina's photostream

And the good news is that according to Remodeling Magazine Cost -vs- Value report 2008-2009, most home improvement projects are still increasing the value of residential homes in the Metro Detroit Market.

A couple of the best returns on investments are adding a deck addition or vinyl siding. Both can return approximately 80 percent in your home's value. In other words, if you spent $10,000 on a deck or siding, providing you sold your house within a year, your home's value would increase by $8,000.

Have drafty old windows? Replacing them with new vinyl or wood windows is also a good bet, with returns of more than 77 percent.

Considering a major or minor kitchen remodel or perhaps a bathroom remodel? Experts say that each of these projects can increase the value of your home more than 74 percent of the cost.

The bottom of the home improvement returns includes a home office remodel or backup generator, which bring less than 70 percent return.

One surprise according to Realtor Magazine is despite the recession and the perception of contractors lowering their prices, the average cost of projects has increased, although the percentage of that increase is less than previous years.

Figure 2 by Keith Osterman