Make bank on your home without breaking the bank
Exterior home improvements have the highest returns on investment (ROI).
Garage door replacement, in particular, has the highest ROI of 194%.
Energy-efficient heating and appliances will also boost home value.
Whether you’re in the early stages of preparing to sell your home or just about to put it on the market, you may be wondering what the best return on investment home improvements are. The truth is that some renovations have a higher ROI than others, and all are definitely not created equal. Learn how to get the best ROI on your next project, including exactly which offers the biggest bang for your buck.
Interested buyers are often on the hunt for homes that look great from the outside, are on trend inside, and won’t rack up high energy bills. Before setting your sights on a huge to-do list of home improvement projects, speak with a local home remodeler to assess the best way to get the biggest bang for your buck.
If you're planning to move in the next year or two, a remodel may not be worth the time, money, and work required. However, if you plan on enjoying your home for several more years, remodeling your dream space will be well worth it.
Some of the biggest returns on investment come from renovating the outside of a home—not the inside.
Siding: The cost of replacing siding is well worth it, adding extra value to your home in almost any situation. For example, the cost of stone siding ranges from $87,500 to $125,000 on average, but the ROI is generally 153%, sometimes more. More affordable options like vinyl will recoup 80% of the costs when it comes time to sell.
Roofing: The ROI on a new roof can vary, depending on the material it’s made of. For example, the cost of a metal roof is $11,800 on average, with the ROI of a metal roof being between 60% and 70%. However, asphalt shingle roofs have a slightly lower ROI of about 57%, mostly due to their expected lifespan.
New garage door: Installing a new garage door practically pays for itself when you do eventually sell—the ROI for this project is a whopping 194%.
New or renovated deck: You can get anywhere from 68% to 83% back on the cost to build a new deck or renovate an old one. Using pure wood is more costly but will get you that bigger ROI, while composite options will still recoup more than half of your spending.
If you’re looking for a high-ROI project that doesn’t require too much work or extra cost, consider a fresh coat of paint for your whole home. The ROI of a new interior paint job is around 107%, but there’s a catch—this ROI is only attainable when the job is done flawlessly, so consider hiring a painting pro near you for this job.
If you’re an avid DIYer with the patience of well, watching paint dry, you can paint your room like a pro for a fraction of the cost. Just remember that the more perfect the paint job—wall condition, paint color, and edging—the higher you can expect your ROI to be.
Believe it or not, it’s the little kitchen changes that will win you the most money in the long run. In fact, the ROI for major kitchen remodels range from just 38% to 50%, while the minor ones can win you back as much as 96% of what you spent. Focus on small fixes like refacing or refinishing existing cabinets, installing new sinks and countertops, and opting for more energy-efficient cooktops and appliances. A local home remodeling pro can guide you on the best upgrades for your kitchen space.
When it comes to getting more money from your living room, turn your attention to the front door and windows. Swapping these features out for new ones, especially if they’re showing signs of wear and tear, is a big boon for increasing home value. Replacing an entry door offers a 188% ROI, and window replacements between 63% and 67% depending on the material—with wood options on the lower end and vinyl on the higher end.
If your bathroom is no longer with the times, consider giving it a facelift, if only for the 73% ROI you’ll get from doing so. You don’t even need to make drastic changes to reap those benefits. Simply changing the wallpaper or showerhead will be enough to entice potential buyers, but you may want to go the extra mile with bigger renovations if your tiles, tub, or toilet are particularly out of date.
While knowing the best return on investment home improvements you can do, it’s just as important to know what projects to avoid sinking money into, especially if you are looking to sell soon. While these home upgrades might be worth it if you choose to live in your house for the next five to ten years, the ROI is so small that you won’t recuperate near enough not to feel the financial burden.
Adding a pool: If you want to add a pool to your backyard for personal use, that is fine, but the ROI on adding a pool is only 7% to 8% on average. If you’re considering moving and don’t already have a pool, skip this project.
Large bathroom addition: The cost of adding a bathroom ranges from $5,000 to $75,000, with the high end reaching as much as $120,000. While adding a bathroom might be in your plans if you stay, the cost often outweighs the value added, recouping only between 30% and 50%.
Custom features: While personalized home improvements like wine cellars or home theaters can enhance your enjoyment of your home while you live there, they may not be the best investment if you plan to sell in the near future. Since these projects can get expensive, you’re better off leaving these off the improvements list if moving is in the future plans.
Bold or unique designs: Adding a cheetah-print carpet in the basement might be your dream upgrade, but that bold choice might deter some potential buyers. If you're considering selling your home soon, consider modest designs and colors, opting for white, gray, beige, and taupe tones for walls and flooring.
Which improvements you decide to make will depend on your budget, how much longer you’ll be living there, and which features are in the worst shape.
You don’t need to renovate aspects of a home that were recently replaced or are in otherwise good condition. Instead, save your money to improve features that could use it—even if it’s not for one of the projects listed above. You won’t recoup as much of the costs for remodeling a laundry room, for example, but you’ll still get back roughly 40%, especially if the space really needs the TLC.
Let’s say you’re not moving out soon, or you’re moving right away, or maybe you’re trying to do home renovations on a budget. All of this will impact how you choose your projects.
For instance, roof replacements might have a larger ROI than a bedroom remodel, but you could still be better off picking the latter if you’re not planning on leaving right away. Or, if you’re financially restricted, consider doing one big project that will greatly recoup costs—like installing a new garage door—rather than a few small ones with lower ROIs.
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We made an appointment, she arrived right on time. I had many knives, scissors as well as few tools to be sharpened. She worked in the back of her truck the bulk of the afternoon. She gave me sleeves for everything. My kitchen knives were beautifully sharpened. They haven't been that sharp...
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