Best ROI Home Improvements for Your Home

Best ROI Home Improvements for Your Home

When considering home improvements, homeowners often look for projects that not only enhance the aesthetics and functionality of their home but also offer the best return on investment (ROI). Whether planning to sell soon or simply upgrading for comfort, selecting the right renovations can significantly impact the financial value of a home. This blog post delves into various home improvement projects that yield the highest ROI, offering practical advice on how to boost your property’s value efficiently.

Understanding ROI in Home Improvements

Return on investment in home renovations refers to the percentage of the cost that homeowners can expect to recoup when they sell their home. Factors influencing ROI include the quality of the work, the home’s location, and market trends. High ROI improvements not only appeal to potential buyers but also enhance the living experience of the current residents.

High-ROI Home Improvement Projects

Minor Kitchen Remodel

A full kitchen renovation can be costly and might not offer the best return. Instead, a minor remodel involving updates like replacing old appliances with energy-efficient models, refacing cabinets, and installing new countertops can significantly modernize the kitchen without a hefty price tag. According to industry reports, minor kitchen remodels can recoup about 72% to 77% of their cost.

Bathroom Renovation

Updating bathrooms can also lead to a substantial return. Simple upgrades such as modernizing fixtures, repainting, and adding new tiles can refresh the space significantly. For a slightly larger investment, replacing outdated vanities or adding an extra bathroom where possible can dramatically increase a home’s appeal and functionality, with an estimated ROI of 60% to 68%.

Energy-Efficient Insulation

With rising energy costs, efficiency upgrades are increasingly impactful on home value. Adding high-quality insulation helps reduce utility bills and makes the home more comfortable. Energy-efficient improvements are not only beneficial for attracting eco-conscious buyers but also offer long-term savings, making this a smart upgrade with an ROI that can vary widely but is often very cost-effective.


As explored in a previous post, well-considered landscaping enhances curb appeal and can make a home stand out in the market. Professional landscaping, or even simple improvements like adding mulch and planting shrubs, can return approximately 100% of the investment, depending on the initial state of the yard and the improvements made.

Exterior Improvements

Projects like replacing an old roof or installing new vinyl siding are less glamorous than interior remodeling but are crucial for avoiding buyers’ concerns about maintenance issues. These improvements can protect the structure of the home and improve its appearance, with an ROI often exceeding 68%.

Deck Addition

Outdoor living spaces have become highly desirable, especially in markets with warm climates. Adding a deck or patio extends the living space and allows homeowners to enjoy their outdoor environment, with an average ROI of about 72%.

Hardwood Flooring Installation or Refinishing

Hardwood floors are a popular feature due to their durability and timeless appeal. Installing new hardwood flooring or refinishing existing ones can recover 70% to 80% of the cost through increased home value.

Tips for Maximizing ROI

  • Prioritize Updates That Appeal Broadly: Choose neutral, widely appealing options in renovations to attract a larger pool of potential buyers.

  • Keep Budget in Check: Align the investment with the value of your home and comparable properties in your neighborhood to avoid overspending on improvements that won’t pay off.

  • Focus on Key Areas: Concentrate on improvements in key areas such as the kitchen, bathrooms, and exterior, as these are typically important to buyers.

  • Consider Local Market Conditions: Tailor your home improvements to what’s most beneficial in your specific market. For instance, in colder regions, heating system upgrades might provide substantial ROI, while in warmer areas, an outdoor kitchen might be more lucrative.
Investing in home improvement projects with high ROI can significantly enhance both the value and appeal of your home. By focusing on strategic updates that increase efficiency, functionality, and aesthetic appeal, homeowners can ensure they maximize their investment while making their home more enjoyable and marketable. Choosing the right projects, keeping future buyers in mind, and making smart choices about spending can turn home improvements into profitable investments.

Olga de Lange has 20 years of experience and a background in architecture, design, and development. Fortified by a degree in architecture, she has an eye for the aesthetic and practical aspects of selling a house in Boulder. Olga's deep understanding of the Boulder, CO, real estate market, combined with her personalized approach, ensures that your home-selling process is successful and a seamless and positive experience.

Work With Olga

Olga is best known by her clients for her knowledgeable and professional demeanor as she effectively manages the development and transaction process.

Follow Me on Instagram