Best ROI Home Upgrades

Which home improvements add the most market value?

There are some heavier-lift projects that are known to improve a home’s value. The bonus with any of these is that they will also improve your time spent in the home. The downside is, by the nature of the job, they tend to take longer and cost more money. They may also leave a room inaccessible for the time it takes to finish a job.  

The best return on investment (ROI) upgrades for a home will vary depending on the specific home and market conditions. Still, regardless of the market, there are a list of projects that regularly come up in this conversation. Some upgrades that tend to have a high ROI include:

Kitchen renovations

A well-designed and updated kitchen is a major selling point for potential buyers. The scope of the project and your needs as a homeowner will determine exactly what goes into any kitchen renovation and the duration of the project. Some common elements of a kitchen upgrade may include:

• Cabinet replacement or refacing: New or refaced cabinets give your kitchen a fresh, updated look and provide additional storage space.
• Countertop replacement: Upgrading to new countertops, such as granite, quartz, or solid surface improves the appearance and functionality of your kitchen.
• Appliance upgrades: Replacing outdated appliances with new, energy-efficient models makes your kitchen more functional and can lower your energy bills.
• Lighting: Upgrading or adding lighting fixtures, such as pendant lights or under-cabinet lights improves the look and feel of your kitchen.
• Flooring: Installing new flooring, such as hardwood, tile, or luxury vinyl improves the appearance and durability of your kitchen.
• Backsplash installation: Adding a new tile backsplash adds a decorative touch and protects your walls from spills and splashes.
• Paint: A new paint color can give your kitchen a fresh look.
• Sink and Faucet: Installing a new sink and faucet changes the look of your kitchen and adds functionality.

It’s important to consult with a professional designer or contractor to determine the best kitchen upgrades for you. Keep in mind that kitchen remodels can be an extensive and disruptive process. It's important to plan ahead and have a realistic budget in place.

Bathroom renovations

Similar to kitchen renovations, updating your bathroom or bathrooms is a great way to increase the value of your home. A bathroom renovation ranges from small projects that take a couple of days to an overhaul that may take weeks. Exactly what your renovation includes depends on what you need out of it. There are, however, some common elements of a bathroom renovation may include:

• Vanity replacement: Updating the vanity with new cabinetry and countertops gives your bathroom a fresh, updated look and provides additional storage space.
• Shower or tub replacement: Replacing an outdated shower or bathtub with a newer, more modern model improves the appearance and functionality of your bathroom.
• Lighting: Upgrading or adding lighting fixtures, such as recessed lights or sconces, improves the look and feel of your bathroom.
• Flooring: Installing new flooring, whether it’s just an upgrade or a full demolition, improves the appearance and durability of a bathroom.
• Paint: A new paint color can give your bathroom a fresh look.
• Plumbing fixtures: Replacing old faucets, showerheads and toilets adds a fresh look and improves the functionality of your bathroom.
• Ventilation: Installing a new exhaust fan or adding a window helps improve the air quality and reduce moisture, which will help the bathroom from deteriorating.

Just like a kitchen, a bathroom remodel can be an extensive and disruptive process. If you’re considering a remodel, be sure to consult a contractor early so you can plan ahead.

Energy efficiency

Adding insulation, upgrading to energy-efficient appliances, and replacing windows can lower the energy demand of your home. These updates are particularly beneficial because they can be done rather quickly and upgrade your home’s market value as well as your experience in the home immediately. Living in a more energy-efficient home will not only lower your energy bills, but it will also reduce your environmental impact. It's a win-win situation. A professional can help you determine the best energy-efficient upgrades for your specific home and budget.

There are, however, some common jobs to consider:

• Insulate your home: Insulating your attic, walls, and floors helps reduce heat loss in the winter and keeps your home cooler in the summer.
• Seal air leaks: Seal gaps and cracks around windows, doors, and other openings. This helps prevent drafts and reduce the amount of air that escapes from your home.
• Replace old windows: Old, drafty windows are a major source of heat loss. Replacing them with energy-efficient windows can significantly reduce energy costs.
• Upgrade to energy-efficient appliances: Replacing old appliances with new energy-efficient models can lower your energy bills and reduce your environmental impact.
• Use a smart thermostat: A smart thermostat allows you to set the temperature of your home to automatically adjust when you're away from the house or sleeping, which can save energy.
• Install a solar water heater: Solar water heaters use the sun's renewable energy to heat water for your home.
• Add solar panels: Solar panels generate electricity for your home, reducing your reliance on fossil fuels and lowering your energy bills.
• Use energy-efficient light bulbs: Replacing traditional incandescent bulbs with LED or CFL bulbs saves energy while your lights are on, which helps lower your electricity bill.

Add living space

Finishing a basement or converting an attic into living space may increase the square footage and upgrade the market value of your home. You can also make an addition to a home to add a room or a bathroom. These are the go-to ideas when people think of adding living space, but there is something else to consider: outdoor living space.  

Outdoor living spaces, such as decks, patios, or porches, provide additional living space for homeowners and can be used for entertaining, relaxing, and enjoying the outdoors. A well-kept outdoor living space may not show up on tax assessments or online value estimators, but it still can add value. These spaces are more likely to be noticed by an appraiser when it comes time to sell and may increase the amount that a potential buyer is willing to pay for your home.  

It's important to note that, perhaps more than other parts of the home, the value added by an outdoor living space can vary depending on things like the quality of construction, the materials used, and the size and location of the space. So, if you already have a deck that could use some love, don’t be afraid to invest in quality, long-lasting materials. Additionally, the specific location of the house and the type of outdoor living space may play a role. For example, a house in a warm climate that has a large, covered patio with a pool may have more value than a house with the same features in a colder climate.

Curb appeal

Curb appeal is a fancy term to reference a person’s first impression of your home. It’s all about how your home looks from the street, how attractive it is to passers by. Simple improvements to your home exterior, such as landscaping, painting, or a new front door can make a big difference in the overall value of your home.

Some things you can do include:

• Clean: Start by cleaning the exterior of your home, including the windows, gutters, and siding. A good pressure wash with a light scrub in problem areas will be enough for most homes.
• Landscaping: Add some texture to your yard with flowers, shrubs, and trees.
• Lighting: Add outdoor lighting to your home to highlight key features and to create a warm and inviting ambiance.
• Paint or replace the front door: A fresh coat of paint or a new front door adds color and character to the front of your home and makes a great first impression.
• Fix any visible repairs: Make sure the roof and gutters are in good condition and fix any broken windows or cracked siding.
• Your driveway: If you have an asphalt driveway, you could think about resealing or re-tarring. If you are looking for something unique to build your drive, consider pavers, cobblestone, or other materials to create an attractive driveway that will enhance the overall appearance of your home.
• Outdoor furniture or accessories: Adding outdoor furniture, such as a bench or a table and chairs, creates a cozy and inviting atmosphere. You may also consider a water feature, a statue, or a flower bed to create some visual interest.