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One of my neighbors recently did major, upscale remodeling to her kitchen. She told me it’s the best improvement you can make to your house if you plan to sell it. I didn’t have the heart to tell her that isn’t true. According to “Remodeling Magazine,” you’re much better off fixing up the exterior of your house. Not only will you get more people interested in buying your home, but you also will recover most of the costs.

In the magazine’s “Cost vs. Value Report,” it found that in Alaska, homeowners got the most bang for their buck by replacing siding and windows and adding a new deck. Between 2008-2009, homeowners recouped 96 percent of their costs for installing fiber-cement siding, 93 percent for vinyl window replacement and 97 percent for wood deck additions.

While many potential homebuyers will be won over by a new kitchen with granite countertops, stainless steel appliances and a sub-zero fridge, these things won’t necessarily get them into your house for a viewing. You also won’t recover as much of the cost. Homeowners who did upscale kitchen remodeling recouped only 81 percent of their expenses.

Renovations that add curb appeal have the highest returns. More than ever, consumers appreciate the value of products that are low maintenance and energy efficient. This especially is true with the rising cost of energy.

In addition, building a new deck or replacing windows or siding costs $12,000-$16,000. Major kitchen remodeling can range between $30,000 and $75,000, while upscale remodeling can cost more than $100,000.

One of the trends discovered in the study was that big, expensive projects lose value at a higher rate than less costly ones, so be careful not to “over-remodel” your home. If your kitchen needs updating, you can recoup about

95 percent of your costs with minor remodeling. Instead of completely gutting your kitchen, it might be more cost-effective to replace outdated appliances with mid-priced, energy-efficient models and replace cabinet fronts, drawers and hardware.

If your home is in the million-dollar range, homebuyers might expect a gourmet kitchen and a master bathroom with a Jacuzzi. But if your home is in the lower range, you might want to hold off buying a $4,000 steam shower. Also, try not to go over the top in design choices. You might think bright purple tile and matching striped wallpaper are delightful, but you’ll have a better advantage if your home appeals to the majority of homebuyers.

You also might want to weigh the pros and cons before building an enormous addition to your home. Additions tend to have the highest cost with the lowest return on investment. In Alaska, a bathroom addition costs about $45,000, but you will recoup only about

76 percent of the cost. The return on investment for a $122,000 master suite is 74 percent, and for an $82,000 sunroom, the return on investment drops to 60 percent.

This lack of return might be because people are moving away from wanting McMansions and toward houses that offers a good use of space. As economic times become tougher, more consumers are recognizing that bigger is not necessarily better, especially when more square footage means more space to heat and maintain.

According to the “Remodeling Magazine” study, the most effective ways to lure potential buyers into your home also might be the least expensive. An attractive entryway and good landscaping are two of the most cost-effective ways to improve the appearance of your home. While a new entryway can cost between $1,000 and $5,000, it can increase the perceived value of your home by more than $20,000.

If you don’t have that much to spend on a new door, apply fresh paint and install a new lock set, doorknocker and house numbers. This will set you back less than $300 and can work wonders.

How much you can spend on landscaping also varies dramatically and usually depends on what you have to start with and how extravagant your choices are. On average, nice landscaping can increase the value of your home by 5-10 percent. How much you should spend depends on how much you think you can get for your house.

If you don’t plan to sell your home soon, remodeling projects can be based more on your personal needs versus an immediate return on investment. If you work from home, turning an unused bedroom into an office makes more sense than worrying about what would be most appealing to potential homebuyers when you sell in 15 years.

In trying to decide if you should dive into a renovation project, it’s also worth noting that while construction costs in Alaska are higher than many other regions of the nation, it outperformed most states by about 14 percent in being able to recoup construction costs at the time of sale.

Melissa Brown is an associate professor of applied business at the University of Alaska Tanana Valley Campus. She can be reached at ffmcb@uaf.edu. This column is provided as a public service by the TVC Applied Business Department.