(MONEY Magazine) – 3 GREAT UP GRADES

1 PORCH BRINGING THE INSIDE OUT

2 KITCHEN THE RIGHT MOVES TO MAKE

3 BATHROOM SENSIBLE LUXURY

THERE'S A SHORT-TERM AND A LONG-TERM question to ask before renovating your home. The short-term one is easy: What changes will make your house a better place to live? But the long-term one is equally--if not more--important: What renovations will add value to your home and help increase its selling price?

In today's market, with talk of bubbles and peaks, getting the most renovation bang for your buck is as important as ever. The top projects are kitchen and bath remodels. They pack the biggest financial punch because they are the rooms that age fastest in both style and technology. Outdoor improvements are further down on the list but are growing in popularity: Nearly half of the respondents to an American Institute of Architects' study reported designing more porches and patios last year.

To see these ideas in action, we looked at two homes in similar semirural markets on the East Coast. As you'll notice, it's important that the project suit the property. A 1948 Cape Cod in New York's Hudson Valley needed simple touches to bring it up to date. The gut renovation of a circa-1770 farmhouse in Bucks County, Pa. was a larger endeavor. No matter what your place requires, each project offers wallet-friendly ideas every remodeler can use.

porch redux

Want to make a popular--and affordable--upgrade? Take it outside.

While outdoor rooms have been a popular addition, they're not without pitfalls. Trying to make an outside space look too much like an inside one can wreak havoc on your budget as you pile on more materials and amenities. Rustic is the name of the game here, so keep things simple, as our homeowners in the Hudson Valley did with a space that sits on top of a garage, 15 feet from the ground.

96% PAYBACK FACTOR AT SALE TIME

After demolishing the original structure (an unpainted slab of concrete sheltered by a blue plastic roof that made anyone standing under it look green), the owners set out to build a 12-foot-by-15-foot screened-in porch. They brought in a contractor to paint the floor and construct a new wood frame and metal roof (purchased at Home Depot). French doors lead from the porch to the sunroom, where new windows allow more light in, a hardwood floor replaces wall-to-wall carpeting, and the ceiling has been raised to add a sense of space as well as to reveal the more rustic-looking rafters.

MAXIMUM EFFICIENCY PORCH

SOURCE: Payback factors come from 2005 regional cost and value estimates from Remodeling magazine.

After gutting and renovating the existing farmhouse, owner and architect Donald Billinkoff added some new construction in the form of a screened-in porch. Initially, he thought about insulating his 12-foot-by-33-foot space and installing removable glass panels, but that would have added $20,000 to the price. Instead, he used metal screens reinforced with a rail-height wood bar for safety (the porch sits above the ground on 11-foot columns), which cost around $200.

96% PAYBACK FACTOR AT SALE TIME

Once the structure was up, Billinkoff put in a durable yet attractive mahogany deck. He also sprang for a 42-inch, built-in stainless-steel grill (not shown) that also includes a rotisserie. Running a gas grill under the porch's 15-foot ceilings would be a problem, so a dual-fan range hood was also installed. For seating, the architect designed his own all-weather upholstered couches, which cost $2,000--a far cry from similar designs retailing for $5,000. Ten outdoor lights--purchased at Home Depot for $128--are aimed at the cedar ceiling, giving it a warm glow at night.

MAXIMUM IMPACT PORCH

95% PAYBACK FACTOR AT SALE TIME

Anyone who cooks enjoys a kitchen of their own design, but if recouping costs at sale time is also a concern, consider classic or neutral themes for fixtures, cabinets and countertops. In the renovation below, the homeowners jettisoned all the relics from the '60s-era kitchen--such as the laminate cabinets and the linoleum floor--keeping only the room's basic layout. To open up the space, the owners removed the old dining room wall and replaced it with a five-foot breakfast bar with stools that tuck under the counter when not in use. They also eliminated a small pantry to gain an additional three feet. A 35-inch rolling cart made from butcher block serves as a work and storage area. Two halogen pendant lights hang over the bar, which has cabinets that open on the kitchen side.

Don't go overboard when outfitting a new kitchen. These homeowners kept their cool--and their budget in line--by spending smart, not spending a lot. The cabinets? From IKEA. The sink is an American-made Elkay model and was less than half the price of a basin from Switzerland that wasn't much different except that it was Swiss. Buying a faucet that was on a display in a store shaved 10% off the price.

MAXIMUM EFFICIENCY KITCHEN

kitchen factor

Want to maximize your return? Keep it classic and wide open.

86% PAYBACK FACTOR AT SALE TIME

"My wife wanted a room that didn't leave her feeling isolated from family activities or guests when she cooked," says Billinkoff. "The way the space is integrated into the dining and living areas, she can cook and still feel like she's part of the action." The room is organized around a 15-foot-long, 42-inch-deep island with seating on one side and a sink, two Miele dishwashers, and two rolling dish carts on the other. Two wall ovens, a stove and a refrigerator line the back wall. A series of seven-foot-tall cabinets house a television and audio gear and separate the kitchen from the dining/living area.

To save money, Billinkoff ordered cabinetry from a local carpenter and used lumber-core plywood, which costs about one-third the price of maple, but still has a high-priced look. He also turned to a commercial fabricator for 22 linear feet of stainless steel for the counters, backsplash and sink. Billinkoff recommends going prepared with detailed drawings and knowing exactly what you want. He's also a self-described Home Depot fanatic, and he built his own lamps from their stock. The result is a 13-foot-long, eight-fixture unit that cost a quarter of the price of a deluxe version. "If you have an eye," says Billinkoff, "big-box stores have interesting materials that allow for a lot of creativity."

MAXIMUM IMPACT KITCHEN

bathing beauty

Blend simplicity and luxury, and you'll clean up in the resale market

The original hudson Valley bathroom consisted of nothing more than a toilet and a cardboard accordion door. By pushing out a wall three feet, the owners gained some storage space and room for a shower and sink. A skylight was added to enhance the sense of space in an otherwise not so big room.

Subway tiles (from Home Depot, of course) line the walls of the newly constructed bath in Bucks County.

Towels are kept in a wooden shelving unit picked up at a flea market for $50. For lighting, the homeowner used the same store-bought fixtures he installed in the kitchen.

104% PAYBACK FACTOR AT SALE TIME

The bathroom door is a custom sliding unit, which saves space: It doesn't require as much clearance as a swinging door. Pricey items--such as the river stones that cover this shower floor--were used sparingly.

97% PAYBACK FACTOR AT SALE TIME

Using teak wood as a surround for an otherwise standard bathtub gives it a luxe boost. But luxury doesn't equal wasteful spending: The Kohler sink, tub and toilet were all purchased directly from wholesalers, who can often cut you a deal, saving you a bundle vs. retail prices.

MAXIMUM EFFICIENCY BATHROOM

MAXIMUM IMPACT BATHROOM

in the details

Not everything has to be a major project--a few well-placed accents can make all the difference in any home

WORK WITH WHAT YOU'VE GOT Old materials can make an eye-catching accent in any room.

Wall to wall To create more bathing space in the Bucks County structure, Billinkoff added a two-story, three-sided tower that houses both an upstairs and a downstairs bathroom. The tower was built along the side of the original house, and instead of covering the newly created fourth wall with bland, basic plaster, Billinkoff left it exposed, so that one of the walls of the bathrooms is actually the exterior stone of the original farmhouse.

KNOW YOUR HARDWARE STORE OWNER His advice can be invaluable--and it's free.

Under the wire The screening of the porch in Hudson Valley was reinforced with quarter-inch safety cables that act as a guardrail. The owners considered purchasing a cable system similar to the kind found on ships, but that would have required handing over $2,000 to a ship-parts maker. At $50, a set of steel cables from Ace Hardware is every bit as safe and costs a lot less.

BOOK SHELVES AREN'T JUST FOR LIVING ROOMS They can also spruce up a hallway.

Book smart In the Hudson Valley house, the owners added built-in bookshelves to give a room more color and depth. Sounds crazy, but it's true: Adding a bookshelf to a wall can reduce some of its "wallness" and make the room seem more spacious. Thinking of relocating? Get shelves that anchor to the wall but can be taken intact to a new house when moving day comes.

final appraisal

What local real estate brokers say about each renovation project

MAXIMUM EFFICIENCY

As the agent who sold the owners the Cape, Julia Crowley of Coldwell Banker Currier & Lazier is impressed with the new and improved version, describing it as a "sophisticated country house with a beautiful kitchen and an elegant bath." She also likes the way they turned "an afterthought of a deck into a relaxed, multiseason space."

REALTOR'S APPRAISAL NOW: $490,000

REALTOR'S APPRAISAL IF UNRENOVATED: $339,000

RENOVATION COSTS: $140,000

MAXIMUM IMPACT

Local Century 21 Alliance realtor Michael Marino characterizes the kitchen as "outstanding," the bath as "tasteful and well-integrated," and the screen porch as "awesome"--adding $60,000 to $100,000 to the value of the house. "It's a unique property in a rural area," he says.

REALTOR'S APPRAISAL NOW: $1.4 million

REALTOR'S APPRAISAL IF UNRENOVATED: $250,000

RENOVATION COSTS: $525,000