By Katie Adams, Yahoo Financially Fit Guide

Today's home buyer is in the driver's seat when it comes to demanding the best value in the current real estate market. If sellers want to maximize the worth of their properties by updating their home with a remodeling project, what will produce their highest return for each dollar spent?

Remodeling Magazine evaluated the top remodeling projects to see which ones rank as the best investment. Here is a list of the top projects that will return a high ROI (Return on investment) when you sell your house.

Siding Replacement (fiber-cement or foam-backed vinyl).

Siding may not be as exciting as a new kitchen or bathroom, but for high ROI it can't be beat. Fiber-cement siding nets an astonishing 87% ROI. A foam-backed vinyl product rates almost as high with an 80% rating.

Window Replacement (vinyl or wood).

Windows are an aesthetic feature and represent one of the easiest ways to lower home heating and cooling bills. Vinyl windows net an 80% ROI compared to 77% for wood windows.

Bathroom Remodel. The sky is the limit when undertaking a major bathroom remodel especially when tearing out walls, repairing joists and structural elements, and replacing a toilet and shower. Depending on the size and amenities you could expect to pay up to $50,000 or more. However, you can expect to recoup nearly 71% of the cost.

Major Kitchen Remodel. While a major kitchen renovation is usually the most time-consuming and expensive home improvement job (averaging more than $110,000), it's also one of the most profitable. Regardless of the size of your financial outlay, you can expect to get a nearly 71% ROI.

Deck Addition (composite product). With families spending more time at home, it makes sense to add a deck (composite, not wood). Expect to recoup 63% of your total job cost to boost your home's value by nearly $24,000 if you paid the average job cost of $37,000.

Don't forget federal tax credits for energy efficiency

As you begin to undertake any new remodeling project in 2010, be aware that selecting certain energy efficient products with the Energy Star label will earn you a 30% tax credit for the cost of the product up to $1,500. In some instances the cost of installation can be included in your tax credit amount.

This tax credit expires December 31, 2010 and must be used for an existing home that is your principal residence. New construction and rentals do not qualify. The key to your tax credit is the Manufacturer's Certificate which indicates the product's tax credit status. The residential energy tax credit is claimed on IRS Form 5695 for 2010 tax returns.Check with your tax professional for details.

The official Energy Star approved list of products include:

• Window, Doors and Skylights (Includes storm windows and doors.)

• Heating, Air Conditioning and Ventilation Systems (Includes all types of HVAC systems.)

• Roofs (Includes both metal and asphalt roofs.)

• Insulation (Attics, crawl spaces and walls.)

• Biomass Stoves (Use alternative fuels such as agricultural products, wood pellets, waste products and more for energy efficiency.)
  

• Water Heaters (Includes gas, oil and propane products.)

Learn more here: www.EnergyStar.gov