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.
Some of the biggest returns on investment come from renovating the outside of a home—not the inside.
Siding: Updating siding of all kinds can increase home value. Take manufactured stone veneer, which has 153% ROI. More affordable options like vinyl will recoup 80% of the costs when it comes time to sell. In general, this kind of home exterior remodel costs roughly $12,000 on average, but you’ll make back most of that when it comes time to sell.
Roofing: The value a new roof adds will depend on the material it’s made of. Metal roofs cost almost $50,000 to install and you’ll probably only get less than half of that back. By contrast, new asphalt shingles costs are less expensive upfront and will deliver a 57% ROI.
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% percent.
New or renovated deck: You can get anywhere from 62% 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.
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.
Trading in your current heating system for one that’s more eco-friendly will lower your energy bills while you’re still in your home, and make it more appealing and valuable to potential buyers when you decide to sell. In fact, you stand to regain 66% of what you spent to have it installed in the first place—which shakes out to roughly $12,000 back from $18,000 when all is said and done.
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.
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.
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.
Renovating just before a move is worth it in cases of severe damage or decay—or if you're actually just making home improvements to flip and sell a property. If your home is in otherwise good condition, don't burden yourself with additional tasks when you're already busy packing. And if something needs to be fixed, try to plan to do it at least a few months before your big move.
Before a move, prioritize projects that involve repairing broken or old home features over ones with the highest ROI—because no amount of manufactured stone veneer will distract potential buyers from an interior that's falling apart. Only after you've tended to your home's biggest sore spots should you turn your attention to other potential renovations.
