Home improvements have the potential to increase home value. But some home improvement projects cost far more than the value they would add to your house.
Some of the best ROI home improvements, like landscaping and garage door replacements, can make back their cost nearly two-fold. But others, including kitchen and bathroom remodels, rarely recoup their expenses.
Even if a home improvement doesn't have an ROI (return on investment) above 100%, it may still be worthwhile. The renovation may attract a larger pool of potential buyers, and in some cases, it can prevent minor issues with your home from developing into major ones.
What adds value to a home is highly dependent on local market conditions. You should talk to a realtor to understand how to increase home value based on your location.
If you don't have an agent yet, we can connect you to top realtors who know what buyers are looking for in your area. On top of getting local expertise, you'll get a low listing fee of 1.5%, up to half of what traditional realtors charge. Just answer a few short questions to get vetted agent recommendations sent to your inbox.
1. Standard lawn care service
| Average cost | $415 |
| Estimated increase in home value | $900 |
| ROI | 217%[1] |
Standard lawn service, such as fertilizer and weed control, is cheap and has a great ROI.
On a 5,000-square-foot lawn, six seasonal applications of fertilizer or weed control should cost you only a couple hundred dollars. However, you’ll recover more than twice that amount when you sell.
Standard lawn service has such a great ROI because it makes a big first impression on buyers. A lawn that is overgrown with weeds can scare buyers away, even if the rest of the house is in good condition.
As Adam Graham, Construction Industry Analyst at Fixr.com, says, “Regular front yard upkeep can attract more visitors and leave a favorable first impression.” By attracting a bigger pool of buyers, you’re more likely to get a higher sale price.
2. Garage door replacement
| Average cost | $4,513 |
| Estimated increase in home value | $8,751 |
| ROI | 194%[2] |
A garage door replacement also has an ROI of nearly 200%, although the cost is substantially higher than standard lawn care service. You should expect to spend at least a few thousand dollars on a new garage door.
Similar to lawn care maintenance, a garage door is important because it can make a great first impression on buyers. If a garage door is damaged or looks unsightly, it may drive buyers away.
However, if you already have a well-functioning garage door, then replacing it outright may not be worth your money. Instead, a new coat of paint is a cheaper way of sprucing up its appearance. Talk with your listing agent about whether investing in a garage door could boost your home’s value.
3. Entry door replacement (steel)
| Average cost | $2,355 |
| Estimated increase in home value | $4,430 |
| ROI | 188%[2] |
A new entry door is another way to make the exterior of your home look especially enticing to potential buyers. While getting a new steel door will set you back a couple thousand dollars, your ROI could be close to 200%.
As with garage door replacements, the best returns will be for homeowners whose entry doors are in poor condition. If your main door only needs some cleaning and a fresh coat of paint, you won’t increase your home’s potential sale price by much by replacing it.
Again, find a real estate agent who you can talk to about the condition of your entry door. They can provide guidance about what type of doors buyers are looking for and whether getting a new door could potentially bring in more potential buyers.
4. Manufactured stone veneer siding
| Average cost | $11,287 |
| Estimated increase in home value | $17,291 |
| ROI | 153%[2] |
Manufactured stone veneer siding can make your home look a lot more attractive to buyers, and it significantly increases curb appeal. With an ROI of over 150%, stone veneer is one of the best ways of increasing your property’s value.
You’ll get the best return if you’re replacing a cheaper siding material, such as vinyl. Also, if your current siding is damaged, opting for stone veneer will likewise give you an excellent ROI.
However, manufactured stone veneer is expensive. Before tackling this sort of project, your realtor can run a comparative market analysis (CMA). This can help you determine if new stone veneer siding could help you achieve a higher sale price, based on whether homes near you have this feature and how much value it added to those homes.
5. Hardwood flooring refinish
| Average cost | $3,400 |
| Estimated increase in home value | $5,000 |
| ROI | 147%[3] |
Hardwood flooring refinishing has the highest ROI of any interior improvement on our list. By investing approximately $3,400 in refinishing, you'll increase your home's value by approximately $5,000. That's an ROI of 147%.
Hardwood flooring tends to be more popular with buyers than other types of flooring, such as carpet and laminate, because it has a reputation for durability and being easy to clean up.
If you can't afford to refinish all of your hardwood floors, you can save money by focusing on areas that are likely to make the biggest impact on buyers. Such areas may include the front entrance hall, the kitchen, and the living room.
6. New wood flooring
| Average cost | $5,500 |
| Estimated increase in home value | $6,500 |
| ROI | 118%[3] |
New wood flooring can add a significant amount of value to your home, with an ROI of about 118%.
As Andrew Fortune, realtor and owner of Great Colorado Homes, says, “Since flooring is the most trafficked part of the home, replacing the flooring has the greatest impact on a home’s value. New floors make the home appear as if no one has lived there yet.”
Even if you’re not planning on selling anytime soon, new flooring can significantly increase your enjoyment of your home. One survey found that 90% of consumers said they have a greater desire to be home after getting new wood flooring.[3]
However, new wood flooring can be expensive. If you already have wood flooring that is simply worn, your money will likely go further by simply getting it refinished. Refinishing has a lower overall cost but higher ROI.
7. Landscape maintenance
| Average cost | $4,800 |
| Estimated increase in home value | $5,000 |
| ROI | 104%[1] |
Landscape maintenance, which includes mulch application, mowing, pruning of shrubs, and planting flowers, has a reasonably good ROI of 104%.
Landscaping is one of the easier ways of increasing your home’s curb appeal. That's because it doesn’t disrupt your ability to use your property, and it can be undertaken in small steps rather than as one big project.
While you can hire a landscaping company, this is one of the few projects on this list that is relatively easy for DIYers. By doing this project yourself, you could potentially reduce the cost of selling your house while improving your ROI.
Because of its ease and its ability to make a good first impression on buyers, landscape maintenance is one of the more popular ways of increasing home value. In fact, according to the National Association of Realtors, 74% of realtors recommend landscape maintenance before selling a house.[1]
8. Upgraded insulation
| Average cost | $2,500 |
| Estimated increase in home value | $2,500 |
| ROI | 100%[3] |
Upgraded insulation doesn't have the highest ROI, but it's still worth considering if you're moving soon. Particularly in cold climates, upgraded insulation can be a big selling point for homeowners worried about their energy bills.
As Saddat Abid, marketing expert at Property Saviour, says, “Value-adding will highly vary with the season and market. For instance, the value perceived in energy-efficient windows, better insulation, or a new roof can be much greater during the winter months in the northern states.”
When upgrading your insulation, you'll probably want to focus on your attic first. Since heat rises, much of it tends to escape through the attic. By better insulating it, you'll make the most dramatic difference to your energy bills.
9. Roofing
| Average cost | $12,000 |
| Estimated increase in home value | $12,000 |
| ROI | 100%[3] |
Replacing a roof is an expensive undertaking. And it'll likely only increase your home's value enough for you to break even on the investment.
Despite the relatively low return, if your roof is nearing the end of its lifespan, it’s probably going to be an important repair to make before selling your house.
For one, a damaged or leaking roof can lead to other issues, such as water damage and mold. These issues can be even costlier to fix. In some cases, they may even make your home uninhabitable, which will dramatically lower the fair market value of your home.
Also, many buyers will be hesitant about buying a house with a damaged or old roof given that they'll be the ones who'll have to replace it in the future.
By replacing your roof, you ensure you're not limiting your pool of potential buyers. The more potential buyers you have, the more competition there may be for your home, which can help increase its final sale price.
How to decide which renovations to complete before selling
Trying to decide which home improvements to complete before selling can be difficult, especially if you have a limited budget and a short timeline. Here are five things that can help you narrow down the projects you should focus on before putting your house on the market.
- Determine a budget: Your budget will help you determine what home improvement projects are feasible. Dudi Shamir, real estate investor and co-founder of Proven House Buyers, says, “As a general rule of thumb, home sellers should expect to spend around 1% to 3% of their home's value on pre-listing repairs and improvements.”
- Know your timeline: You don’t need to fix everything when selling a house, especially if you’re short on time. Major projects provide more opportunities for delays, which could make it harder to sell on your timeline. If you’re in a rush, focus on quick updates and cosmetic improvements.
- Focus on high ROI renovations: More expensive renovations don’t necessarily have the best ROI. In fact, big-ticket improvements like a bedroom addition or kitchen remodel rarely increase your home’s value enough to justify their cost.
- Prioritize dealbreakers: Some serious issues can scare buyers away and negatively impact an appraisal, which can make it difficult for buyers to secure financing. Graham says, “Neglected repairs that are often deal breakers include roofing issues, foundation problems, malfunctioning plumbing or HVAC systems, and signs of water damage.”
- Consult a realtor: A real estate agent will be your best resource for learning how to add value to your home and how to sell a house that needs repairs. Your realtor will know what buyers in your area are looking for, which can help you prioritize projects that are likely to have the highest ROI and help your home sell faster and for more money.
FAQ
What renovations increase home value the most?
Garage door replacements and manufactured stone veneer siding increase home values the most, according to one national study.[2] However, the value of renovations varies by market, so you should find a real estate agent who knows what buyers are looking for in your area before you undertake a home improvement project.
What renovations do not add value?
Additions to your home, such as a new primary suite or bathroom, along with major kitchen and bath remodels, tend to have the lowest ROI of major renovations. While these projects can be impressive, they typically cost tens of thousands of dollars and are rarely worth the investment when selling.
Does new flooring increase home value?
Yes, new flooring can increase your home value, but only certain types of flooring. Hardwood floors generally add the most value to a home, while you're unlikely to recoup your costs with carpet or laminate flooring. Refinishing existing hardwood is one of the best repairs you can make before selling.
Does new paint increase home value?
New paint won't increase your home's value by much, but it can help bring in more potential buyers when you’re selling your house. By increasing the number of buyers interested in your home, you're more likely to sell your house for a higher price.
How much does a kitchen remodel increase home value?
While a kitchen remodel can add several thousand dollars to the fair market value of your house, you're unlikely to recoup the costs of the remodel. For some houses, a kitchen remodel has an ROI of over 100%, but on average, you're better off investing in less costly improvements.
How much does a bathroom remodel increase home value?
Bathroom remodels are expensive and rarely add as much value to your house as they cost. While a bathroom remodel can be a good idea for increasing your own enjoyment of your home, there are more important repairs to make before selling your house.
