Home Improvements That Pay

Many big home improvement projects - once thought to be largely recouped upon sale - are losing some of their value as the real estate market continues its slump. Here are some projects that are still returning much of their original cost.

• Curb appeal projects such as new vinyl or fiber cement siding, as well as new windows are bringing higher returns than before.
• Local and regional trends matter. Backup power generators are a better investment in the Southwest than in the Northeast, for example. Consult real estate agents and appraisers and go to open houses to get the best sense of what improvements pay in your area.
• Some projects can lower your insurance bill. Electrical and plumbing upgrades, for example, can lower rates by 10% to 20% - see if your insurer offers discounts for wind, hail and fire resistant roofing; water leak detection and shut off valves; hurricane shutters; seismic gas shut off valves; backup generators; and central station burglar and fire alarms.
• Hire a home inspector and make any necessary repairs first. In many states it is illegal to conceal defects.

sources: NAR: Remodeling magazine; Chubb Group of Insurance Cos.; Burns & Wilcox