Which Home Upgrades Deliver the Highest ROI

Jan 24

When it comes to improving your home, not all upgrades are created equal. Some renovations can significantly increase your home’s value and deliver a strong return on investment (ROI), while others may cost more than they’re worth. Whether you’re planning to sell your home soon or simply want to make smart improvements, here are the top home upgrades that deliver the highest ROI.

1. Kitchen Remodel

The kitchen is often considered the heart of the home, making it one of the best areas to invest in. You don’t need to do a complete overhaul to see great returns—minor kitchen updates can deliver an impressive ROI.

High-ROI Kitchen Upgrades:

Replace old appliances with energy-efficient models.
Refinish or paint cabinets for a fresh look.
Upgrade countertops with granite or quartz.
Install new fixtures like faucets, handles, and lighting.

Average ROI: Minor kitchen remodels can deliver up to 70-80% ROI.

Pro Tip: Keep the design neutral and modern to appeal to the widest range of buyers.

2. Bathroom Renovation

Bathrooms are a close second to kitchens when it comes to ROI. A clean, modern bathroom is a major selling point for buyers. Like kitchens, you don’t need to gut the space—strategic upgrades can go a long way.

High-ROI Bathroom Upgrades:

Replace outdated vanities with sleek, modern designs.
Install new fixtures like faucets, showerheads, and lighting.
Update flooring with durable tiles.
Add energy-efficient features, like low-flow toilets and showerheads.

Average ROI: Mid-range bathroom renovations yield around 60-70% ROI.

Pro Tip: Adding a second bathroom or converting a half-bath to a full bath can significantly increase your home’s value.

3. Curb Appeal Enhancements

First impressions matter, and a home’s exterior is the first thing potential buyers notice. Simple upgrades that boost curb appeal can make a huge impact.

High-ROI Curb Appeal Upgrades:

Paint or replace your front door. A bold, fresh color can make a big statement.
Upgrade landscaping with low-maintenance plants, mulch, and edging.
Install outdoor lighting to highlight pathways and landscaping.
Power-wash or repaint your home’s exterior if needed.

Average ROI: Enhancing curb appeal can deliver up to 70-90% ROI, depending on the upgrades.

Pro Tip: Adding a new garage door or fresh siding can provide excellent ROI and instantly improve your home’s look.

4. Energy-Efficient Improvements

Energy-efficient upgrades are increasingly attractive to buyers, as they lower utility costs and make a home more eco-friendly.

High-ROI Energy Upgrades:

Install energy-efficient windows to reduce heating and cooling costs.
Add attic insulation to improve your home’s energy performance.
Upgrade to a smart thermostat for better climate control.
Replace old HVAC systems or appliances with energy-efficient alternatives.

Average ROI: Energy-efficient improvements can yield 50-75% ROI, with savings that continue over time.

Pro Tip: Highlight energy-efficient features when listing your home, as they’re a big selling point for buyers.

5. Basement or Attic Conversion

Converting unused spaces into functional rooms adds square footage and value to your home. Basements and attics are prime areas for these upgrades.

High-ROI Ideas for Conversions:

Finish a basement to create a family room, home office, or rental suite.
Turn an attic into a bedroom or loft space.
Add storage solutions, like built-in shelves or closets.

Average ROI: Finished basements and attics can deliver 60-70% ROI, depending on the scope of the project.

Pro Tip: Ensure the space feels light and welcoming by using bright lighting and neutral colors.

6. Fresh Paint and Flooring

Sometimes the simplest upgrades make the biggest impact. Fresh paint and new flooring can instantly transform your home and appeal to buyers.

High-ROI Upgrades:

Paint walls in neutral tones like beige, gray, or white to appeal to more buyers.
Replace worn carpets with hardwood, laminate, or luxury vinyl plank flooring.
Refinish existing hardwood floors for a polished, updated look.

Average ROI: Fresh paint and updated flooring can deliver up to 80% ROI.

Pro Tip: Neutral colors make rooms look larger and brighter, helping buyers visualize themselves in the space.

7. Deck or Patio Addition

Outdoor living spaces are becoming increasingly popular. Adding a deck or patio can expand your usable square footage and provide a great space for entertaining.

High-ROI Outdoor Upgrades:

Build a wooden deck for a cost-effective addition.
Create a stone or paver patio for durability and style.
Add seating areas, pergolas, or fire pits for extra appeal.

Average ROI: Outdoor spaces can deliver 60-75% ROI, depending on materials and features.

Pro Tip: Enhance outdoor areas with lighting, planters, or cozy furniture to make them inviting.

So you’re selling your home and don’t know what to upgrade first?

When upgrading your home, focus on projects that balance cost, functionality, and style to maximize ROI. Kitchens, bathrooms, energy-efficient upgrades, and curb appeal are consistently at the top of the list for value-boosting improvements. By prioritizing smart renovations, you’ll not only enjoy a more beautiful home but also see a strong return on your investment when it’s time to sell.