The lesson here is that when you're prioritizing your renovations, make sure you consider which ones add the most value to your home. Here are some guidelines:

• Chose improvements that are most popular with prospective buyers. Kitchens and bathrooms are at the top of the hit list according to statistics gathered by the Appraisal Institute of Canada. The institute also has a useful on-line guide on their website which shows you the return on any renovation you are considering. The guide is called "Renova" and can be accessed at www.aicanada.ca.
• Keep your home in top shape. Homes that are not looked after deteriorate rapidly in value. A leaky roof, for example, can cause damage to your hardwood floors. Siding that is in bad shape can lead to squirrels and other pests getting into your attic and causing further damage.
• When the time comes to sell, put your maintenance operation into high gear. Painting the exterior, repairing the roof, and re-doing the gutters will ensure that buyers get a positive impression.
• Rental suites are a big plus: As mentioned above, renovations that make it possible to derive rental income are generally big plusses for potential buyers.
• Avoid amateur reno jobs. The "do it yourself" reno market is all the rage in Canada right now, but if you put an addition on yourself, and the roof leaks, a prospective buyer won't be impressed. If you can't do a professional job yourself, hire somebody who can.
• Invest in energy efficiency. With rising energy prices, you can be sure that the payoff from investments in insulation will give a return that keeps rising. If you improve your energy efficiency, you also may be able to qualify for a grant through the Government of Canada Office of Energy Efficiency. For more information, visit their web site at http://oee.nrcan.gc.ca/corporate/incentives.cfm?attr=0