Many home improvement projects begin with someone in the household saying, "Wouldn't it be nice ...?" What follows may be a wish for a remodeled kitchen or a room addition with space to accommodate every family member's needs. However, reality usually intrudes upon this daydream: There's only so much money and so much space. The trick is turning your dreams into reality. Start by evaluating your needs.

You need to update the out-of-date. If your kitchen still sports appliances and decor from decades past, now may be the time to make it current.

You need to replace fixtures or appliances. Sometimes a home improvement project grows out of an immediate need to replace broken or inefficient fixtures. If the sink, tub or toilet has to be replaced, many people take the opportunity to refurbish the entire bathroom.

You need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Potential buyers may not want to pay for the extras you have included, such as a hot tub or pool. It's best to keep changes simple.

Also keep in mind that people viewing your house may not share your tastes and therefore won't necessarily appreciate the time and effort you put into finding just the right shade of green paint for the walls.

Improving to sell is easier if you mentally put yourself on the other side of the proverbial fence: What is important to the home buyer?

If you're remodeling in order to stay in your home, you still need to avoid over-improving it. You'll probably sell someday, and even if your house is the best on the block, you may have a hard time convincing buyers to pay extra for the things you found so important. Keep the value of other homes in the area in mind whenever you consider improvements. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.

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