Top home updates not only enhance your home’s beauty but also boost its resale value significantly. Remember the joy of turning a house into your own home? While the emotional satisfaction is immense, these updates also come with a financial upside.
From the elegance of granite countertops to the personal touch of your preferred paint color, every update has its unique appeal and return on investment (ROI). For those who value solid statistics before making a decision, these top home updates promise both aesthetic improvements and a valuable increase in your property’s market worth.
Drawing from insights provided by Remodeling magazine’s annual “Cost vs. Value” report and incorporating practical examples and expert advice, we delve into the top home updates that promise the best financial returns.
15 Top Home Updates That Give the Best ROI
1. Garage Door and Exterior Upgrades
Surprisingly topping the list with a staggering ROI, garage door replacements and other curb appeal projects dramatically increase a home’s resale value. For instance, a mid-range garage door replacement averages a 194% return nationally, with figures soaring to 314.7% in New England markets. Similarly, steel door replacement, manufactured stone veneer, and fiber-cement siding replacements offer significant paybacks, underscoring the importance of first impressions.
Expert Insight: “The exterior of a home strongly influences buyers’ perceptions, setting expectations before they even step inside. It’s vital to present a house that looks inviting from the outside,” says Clayton DeKorne, chief editor of JLC Group.
2. Minor Kitchen Remodels
The kitchen remains the heart of the home, and even minor updates can significantly impact its appeal to potential buyers. A minor kitchen remodel, which might include refacing cabinets, upgrading appliances to more energy-efficient models, and installing new countertops, offers a 110.8% return in New England. These updates ensure the kitchen feels contemporary and functional without necessitating a complete overhaul.
Real-Life Success: Deborah Katz and her brother achieved an $81,000 profit over the asking price for their inherited home after investing in minor kitchen and bath remodels, emphasizing the effectiveness of targeted renovations.
3. Bathroom Remodel
Bathrooms are key areas for home renovations, ranking just behind kitchens for adding value to your home. By renovating your bathroom, you can expect to recover more than 90% of your investment when you sell your house. Whether you opt for small upgrades or a complete overhaul, investing in your bathroom is a smart financial decision for any homeowner.
4. Adding a Deck
Expanding outdoor living space by adding a deck or patio enhances enjoyment and proves to be a financially savvy upgrade. On average, homeowners can expect to recover 80% of the costs associated with deck additions, with some projects even seeing a full 100% ROI.
5. Interior Painting
A fresh coat of paint is one of the most cost-effective ways to rejuvenate a home’s interior. Choosing modern, neutral colors can transform the space, potentially offering a return of over 100% on the investment.
6. Window Replacements
Replacing old, inefficient windows can significantly improve a home’s aesthetic appeal and energy efficiency. With a recoup value of over 76%, this update not only attracts buyers but also enhances the property’s overall value.
7. Landscaping
Well-executed landscaping can dramatically improve a home’s curb appeal, offering a great return on investment. A mix of colors, heights, and textures can create an inviting exterior without requiring extensive maintenance.
8. Replacing Vinyl Siding with Stone Veneers
Switching out vinyl siding for manufactured stone veneers not only boosts curb appeal but also offers a high ROI, with figures reaching over 97% for an average replacement cost.
9. Basement Remodel
Transforming an underused basement into a functional living space can add significant value to a home, with an average 90% return on investment.
10. Central Air-Conditioning Installation
Upgrading to a central air-conditioning system enhances comfort, reduces energy costs, and can increase a home’s value by approximately 10%, making it an attractive feature for potential buyers.
11. Water Filtration System
Installing a medium-end water filtration system offers not just a 90.1% ROI but also provides better-tasting, cleaner water directly from the tap. With an average cost of $3,000, it’s an upgrade that pays back significantly while saving money and reducing waste from bottled water purchases over time.
12. High-End Patio
A sophisticated patio upgrade can recoup 90.81% of its investment, with an average cost of $10,000. Patios expand living space affordably, offering versatility for entertainment, relaxation, or enjoying the outdoors without the need for extensive construction.
13. New Driveway
A high-end driveway update sees a 92.64% ROI, improving first impressions, safety, and curb appeal. It can also address practical issues like drainage and add valuable parking space, all while providing a smooth surface for activities.
14. Outdoor Kitchen
Especially popular in climates conducive to year-round outdoor living, an outdoor kitchen facilitates entertaining and enjoying the outdoors while cooking, pairing well with patios or decks to create a full outdoor living space. This update is highly valued for its enhancement of the outdoor entertaining experience.
15. New Front Door
The upgrade with the highest ROI, a new front door, not only boosts curb appeal but also security and energy efficiency, making it a practical and aesthetic top choice for homeowners looking to invest in their properties.
Making Informed Decisions
Before diving into any renovation endeavor, homeowners must understand that the return on investment (ROI) for top home updates can differ significantly by region and market. Seeking advice from seasoned real estate agents is key to uncovering which enhancements will most effectively boost a home’s market value in a particular locale.
By strategically investing in the right renovations, homeowners can significantly elevate their property’s attractiveness and financial upside. Concentrating on top home updates with the greatest returns ensures that renovation activities are gratifying and economically advantageous.
