Real estate is an excellent long-term investment, but it’s important to carefully research home improvement projects to figure out which ones will generate the best return on that investment. A home addition is one of the most common ways to remodel a home, but there are a few things you need to know in order to make the best decision and properly plan before taking on any home addition projects.

Here are four things you need to do before beginning home addition projects.

1. Think Through Your Options

People have many reasons for wanting a home addition. In some cases, they’re considering building on to expand their kitchen or living room space. Adding onto your house may also be necessary to add bedroom space to accommodate a growing family. For some households, an addition can provide a much-needed guest room for family members who visit during the holidays.

Regardless of your reasons for adding on, this isn’t a decision to be taken lightly! Home addition projects can be complex and costly and don’t always generate a 100 percent return on investment. Take time to research the average ROI on any addition you’re considering. Also take time to think about whether you love your home and neighborhood enough to add on or whether perhaps it’s time to sell and look for something different. Sometimes purchasing a new home with the layout you require is a better investment than putting money into modifying your current one.

2. Keep It Consistent

If moving isn’t an option and adding on to your house makes good financial sense, take time to do research into other comparable properties in your neighborhood. It’s important that your finished project is consistent with other houses in your area. This applies to exterior changes (no one wants their home to be known as the one that sticks out like a sore thumb), but it’s particularly true of any increase in square footage or value that will send your home’s price far above others nearby. It could be a nasty surprise when you decide to sell your home at some point down the road and discover that there aren’t any good price comparisons because you’ve overbuilt for the area.

3. Research Which Home Addition Projects Add the Most Value

No matter how you’re thinking of adding onto your house, take the time to research various home addition projects and how much value they tend to create. For example, according to The Nest, a garage addition adds the most value of any home addition project. Building a deck to create more outdoor entertaining space also demands an impressive ROI of approximately 70 percent. Meanwhile, kitchen expansions and additional bathrooms also rate well in the returns category.

4. Understand Local Zoning Laws and Building Restrictions

Some home additions happen entirely on the interior of their current home’s footprint — turning a little-used sunroom or porch into an extra bedroom or home office, for example. Other home addition projects change the exterior of the house remarkably, either bumping the footprint out or building the home up.

Early in the planning stages of adding onto your house, it’s important to talk with your contractor about any restrictions that may exist in your neighborhood that may prevent you from adding on in the way you’re imagining. Some areas have height restrictions that prevent homeowners from adding on a second story, for example. In most places, there are rules that govern how close you’re allowed to build to your property line. The latter may restrict your ability to create an addition over a particular size or even prevent you from being able to expand your home’s footprint at all.

Home addition projects can greatly improve the livability and value of your house. However, it’s a process that should be taken with deep consideration and careful planning all the way through in order to ensure that you’re making the right choice and can obtain the maximum return on your investment.