When it comes to increasing the value of your home, not all renovations are created equal. Some improvements offer a better return on investment (ROI) than others, making them smart choices for homeowners looking to maximize their property's value. Here are the top five home improvements that can deliver the best ROI, backed by stats, expert insights, and cost estimates.
1. Minor Kitchen Remodel
A minor kitchen remodel consistently ranks as one of the best ways to increase your home’s value. According to Remodeling Magazine's 2024 Cost vs. Value Report, homeowners can expect to recoup around 77.6% of their investment on a minor kitchen update. This typically includes new cabinet doors, countertops, and appliances, which can modernize the space without a complete overhaul.
SHANE'S TAKE:
A fresh, updated kitchen is one of the first things buyers notice. You don’t have to gut the kitchen to see a big ROI; just focus on the most visible elements.
2. Bathroom Remodel
Updating a bathroom is another high-ROI project. On average, a midrange bathroom remodel offers an ROI of 71.5%, according to the same Cost vs. Value Report. This typically involves replacing fixtures, adding new tile, and updating the vanity and lighting.
SHANE'S TAKE:
Bathrooms are personal spaces, and buyers are drawn to clean, modern designs. Even small changes, like new fixtures or a fresh coat of paint, can make a big difference.
3. Adding a Deck
Outdoor living spaces are in high demand, and adding a deck can be a great way to capitalize on this trend. A wood deck addition typically recoups about 65.8% of its cost, while a composite deck offers an ROI of 63.1%. A well-built deck not only adds usable space but also enhances curb appeal.
SHANE'S TAKE:
Outdoor spaces have become increasingly valuable to homeowners. A deck can extend your living space and appeal to buyers looking for outdoor entertainment areas.
4. Energy-Efficient Upgrades
Energy efficiency is a growing priority for homebuyers, and making upgrades like adding new windows, insulation, or a smart thermostat can offer a strong ROI. According to the National Association of Realtors (NAR), energy-efficient improvements can provide an ROI of up to 75%. Plus, these upgrades often lead to lower utility bills, making them even more appealing.
SHANE'S TAKE:
Energy-efficient homes are increasingly popular as buyers look to save on long-term costs. Simple upgrades can make your home more attractive and boost its market value.
5. Curb Appeal Enhancements
First impressions matter, and enhancing your home’s curb appeal is one of the most cost-effective ways to boost its value. Simple upgrades like new landscaping, a fresh coat of paint, or updated lighting can offer an ROI of up to 70%. The National Association of Realtors' 2023 Remodeling Impact Report highlights that landscape maintenance alone can recover around 100% of the cost when selling.
SHANE'S TAKE:
Curb appeal is crucial. Buyers often decide whether they like a house within seconds of seeing it, so investing in your home’s exterior is always worthwhile.
