There are quite a few homeowners out there that have unrealistic ideas about the potential returns on common home improvements. If you're thinking about selling, there usually is some amount of home improvement that you'll need to do to get the best price possible. Remember that not all home improvements have great returns, however, and that you'll want to stick to improvements that are more likely to pay off for you.

Your Kitchen

According to market data, improvements on the kitchen offer more than a 40% return on investment in many cases. This is one of the most important areas of the home for buyers and you'll want to make sure you do what you can to make it as good as it can be.

Getting better appliances is almost always advisable. At the moment, stainless steel appliances are all the rage and adding them can increase interest in your home. Remember that fashions change, however, so talk to your realtor about what kind of appliances people want to see and consider adding them.

The Bathrooms

Bathroom improvements sometimes net even higher returns on investments than do kitchen improvements; on the order of over 50%, in some cases. Again, look at what's fashionable and see what would work with your home. Steam showers, spa tubs and other improvements can do a lot for a home and can offer great returns on the money you spend.

Paint

Painting your home can easily bring in around 30% returns on investment. Your realtor will likely recommend that you stick to neutral colors that won't put anyone off. It's easy for people to imagine a white room painted red, but people who hate red will react to a room painted that color and may actually lose interest in the home just because of the color choice.

Landscaping

Don't forget the exterior. The first thing people see when they come to see your home will be the yard and other outdoor environs, and you need to make certain that they are in tip top shape. Remember that you will not get a second chance to make the first impression on a buyer and a bad first impression can completely eliminate any possibility that they'll make an offer on your house. According to industry data, the return on investment for landscaping is around 7% or higher.

The Floors

The floors don't have the highest return on investment on the average; around 20%. The flooring can make a big impression on people, however, and flooring can determine to a great extent whether or not they particularly like the house. Again, ask your realtor for advice about what type of floors are piquing the interest of buyers and what you may do to your own flooring to make your home more desirable.

Other improvements you may want to take a look at including adding a fireplace, improving the windows and painting the exterior of the home. Your realtor will be able to give you advice about which improvements are most important for your particular property.