Your Best Budget Guide to Home Improvements

Now is not the time to sell your home.  According to the Commerce Department's New Home Sales Report, home sale prices went down 33% between September 2007 and September 2008, and the median sales price dropped from $221,900 in August to $218,400 in September this year.  However, just because you're not selling your home doesn't mean you should forget potential consumer interests when making changes.

Consider the upgrades you can enjoy now that will also help your home's resale value a few years down the line.  "In the long run, it's kitchens and baths," says Dona Crowder, a realtor with Pacific Union in San Francisco.  While she acknowledges it's hard to measure the effects a remodeled kitchen can have on the eventual selling price without considering market conditions, location, overall condition and style of renovation, "If someone actually had some taste in remodeling, I would say at least 3 to 1."  But she adds the familiar caveat, "Except in a market such as this."  

Crowder also says that if you're staying put for a while, you should attend to the roof, floors, electrical and plumbing.  "If you're going to be living there, why not enjoy them?"  These infrastructural improvements will come in handy when you're trying to sell and an inspector starts investigating all the nooks and crannies, says home inspector Jason Wahlberg.  "The reason for home inspections is that we really do see the things behind the scenes that buyers can't see."  While electrical and plumbing adjustments might not be as glamorous as that new hot tub, it can make a difference in the final sale.  "There are types of things that will reassure people," says Wahlberg.  

Here are the five upgrades with the highest national average returns, according to the 2007 Cost vs. Value Remodeling Report from Remodeling Magazine. (The average percent return on initial investments and average job costs are in parentheses.)