There are many reasons to make improvements to your home, such as adding to your enjoyment of the home or gaining extra space. Some homeowners make improvements because they hope to improve the home’s resale value. Is that a good strategy?

The answer is “it depends.” While improvements can add to the value of your home, many homeowners learn that the cost of improvements is usually higher than any increase in value.

Every year, Remodeling Magazine conducts studies throughout the country to compare the cost of home improvements with the amount they add to a home’s value. They take the data they gather to create a percentage figure that tells how much of the cost a homeowner can expect to recoup from a particular project.

For example, in Central Indiana during 2007, the cost of adding a bathroom averaged $39,522. However, that extra bathroom only raised the price of the average house by $22,774, so the study concluded that the average homeowner recouped just 57.6 percent of the cost of the bathroom.

Which type of project offered the biggest payback? According to the study, replacing your home’s siding increases your home’s value enough to recoup 79.5 percent of the cost. The next best investments were minor remodeling to your kitchen (73.2 percent), replacing your windows with new ones (71.7 to 72.1 percent), adding a wood deck (71.7 percent) and completely overhauling your kitchen (70.8 percent).

At the other end of the scale was adding a backup power generator, which added only 46.9 percent of the cost to the home’s value, followed by a home office remodel (49.5 percent) and a new sunroom (52.3 percent).

Sometimes, you can enhance your home’s value with small fixes. A fresh coat of paint can make a room look brand-new. Putting new hardware or doors on kitchen cabinets can spruce up the entire room. Even some basic landscaping can be a big boost.

Of course, every home and neighborhood are different. If buyers in your area expect modern kitchens, and yours still has avocado or harvest gold appliances, a renovation may pay off. By the same token, if buyers could care less about home offices, it doesn’t make much sense to install one. If you’re planning to sell in the near future, and are contemplating a major addition or renovation, ask a couple local real estate agents whether your plans are worth the investment.