10 Renovations That Offer the Highest Returns

Renovating a home is an expensive and time-consuming endeavor, but if homeowners choose renovations carefully, it can be a valuable investment for their home. Each year, Remodeling magazine reviews the average costs of remodeling projects and their impact on home values in 150 housing markets across the United States. Of these projects, these ten are the most valuable home improvements you can make.

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   Garage Door Replacement (193% ROI)

A garage door likely isn’t the first thing that comes to mind when planning home renovations, but it’s an upgrade with a huge return on investment (ROI), and it’s practical. A garage door enhances the curb appeal of your home, making a lasting impression on potential buyers.

To get the most value out of a new door, Remodeling highlighted that four-piece doors with a minimum R-12 foam insulation and sturdy galvanized steel tracks are the soundest investment. The average cost of this renovation is $4,513 and can yield homeowners a 193% return on investment, which translates to $8,751 in value added to a home.

2. Front Door Replacement (188% ROI)

Another renovation that enhances curb appeal and has a significant ROI is replacing your front door. Like a garage door, replacing your current door with a high-quality one is essential for getting value out of the remodel.

To make an impressive first impression, consider upgrading to a large door with two side panels, ideally with windows, framing the door. This level of upgrade is considered a “grand entry.” It has a slightly lower ROI, but if you plan to live in your home, it’s an upgrade you’ll make great use of.

3. Stone Veneer (153% ROI)

Stone veneer is a way to give the exterior of your home a major facelift, and it comes with the benefit of a 153% return on investment. Typically, adding stone veneer to your property costs $11,287 and yields a return of $17,291.

4. Kitchen Renovations (49% to 96% ROI)

Kitchens are the heart of the home, and for many of us, they’re also areas we often daydream about redoing or updating because it would be both a functional and beautiful renovation. It’s also an upgrade that can increase the value of your home.

Unlike the first three renovations listed here, a kitchen renovation is unlikely to earn you additional cash on a remodel, but it will increase your home’s value enough to offset some of the renovation costs—depending on the type of renovation. Minor upgrades and full remodels yield different returns.

Minor kitchen upgrades can offer homeowners a 96% ROI, while a complete kitchen remodel will recoup 49% of an investment. When renovating your kitchen, you’ll want to assess your short- and long-term needs to determine which renovation will help you get the most value out of your spending.

For instance, if you know, you’ll be in your home for many years, investing in a functional kitchen remodel that meets your needs may be a more valuable and practical investment than giving your kitchen a simple facelift that’s typically done to appeal to home buyers.

5. Exterior Siding Update (88% ROI)

Another practical and aesthetically pleasing renovation that’s valuable for homeowners is to update the exterior siding of their home. Not only does it add protection from the elements and curb appeal, but it also typically brings a return of 88%, offsetting a significant portion of the project’s costs. The type of siding chosen for the renovation can impact the ROI, with fiber-cement siding the most cost-effective option.

6. Deck Addition (82% ROI)

Adding a deck to a home is appealing for many reasons, and the fact that it increases the value of your home is just one of them. Adding a simple, all-wood deck averages a cost of $17,615 and delivers an increase of $14,596 to a home’s value—as well as an enjoyable outdoor space for homeowners.

7. Bathroom Renovations (34% to 73% ROI)

Bathroom renovations can vary from minor upgrades like resurfacing a tub to adding a new bathroom. Minor bathroom upgrades have the most return on value, recouping property owners 73% of the renovation costs. More complex and expensive renovations have a lower ROI but can still increase the value of homes, offsetting the project’s costs. Complete bathroom remodels usually see an ROI of 45%, while a bathroom addition will bring an ROI of 34%.

8. Window Replacement (67% ROI)

Replacing windows with more efficient new windows can lead to a 67% return on investment.

This renovation also improves energy efficiency for homeowners, which can help keep utility costs down, making this a valuable investment from multiple perspectives.

9. HVAC Conversion (66%)

Another valuable and energy-efficient home upgrade is converting an old HVAC system to an electric system that is more efficient and doesn’t rely on non-renewable energy sources. This upgrade is appealing to home buyers, and for homeowners, it can also keep energy bills lower while keeping the home comfortable. Converting from a fossil-fuel furnace to an electric one costs $18,800 and brings an increase of $12,422 in a home’s resale value.

10. Roof Replacement (56%)

Replacing a home’s roof is a necessary and costly renovation, but it also increases the value of your home and brings peace of mind that you have a sound roof over your head. On average, replacing a roof with asphalt shingles costs $30,680, but it can add $17,461 in value to your home.

Final Thoughts

By prioritizing renovations that will enhance your home’s appeal and value, you can set yourself up with a sound investment without having to find the newest sweeps casinos in hopes of a huge financial windfall. Both you and future buyers will appreciate these investments for years to come.