Written by Craig Graves, Hank Realty Group Realtor
When it comes to selling your home, not all renovations are created equal. While it’s tempting to pour money into making your home look exactly the way you want, it’s important to remember that buyers may not share your taste. Instead, focusing on renovations that increase your home’s value and offer the best return on investment (ROI) is key to maximizing your profit when selling your home.
Here are some of the top renovations that offer the highest ROI:
1. Kitchen Remodel
ROI: 70-80%
The kitchen is often the heart of the home, and buyers pay attention to it. A minor kitchen remodel can have a big impact. Focus on updating countertops, replacing outdated appliances with energy-efficient models, adding new hardware, and painting or refinishing cabinets. If you’re considering a more extensive remodel, ensure the design stays in line with the neighborhood’s typical home value.
2. Bathroom Renovation
ROI: 60-70%
Bathrooms are another key area that can influence a buyer’s decision. Simple upgrades like replacing old fixtures, regrouting tile, adding a fresh coat of paint, and updating lighting can make a big difference. If you’re considering more extensive renovations, like replacing the tub or expanding the space, you can also see a strong return, especially if the bathroom is outdated.
3. Curb Appeal & Landscaping
ROI: 100%
First impressions matter, and curb appeal is the first thing buyers notice. Simple landscaping improvements such as planting trees, installing flower beds, or adding outdoor lighting can greatly enhance your home’s exterior. Even a fresh coat of paint on the front door, replacing the mailbox, or adding new house numbers can elevate the appearance of your home.
4. Garage Door Replacement
ROI: 90-98%
Replacing your garage door is one of the highest-ROI renovations you can do. Not only does it improve the exterior aesthetics of your home, but it also adds functionality. Modern garage doors often come with insulation, windows, and enhanced security features that buyers appreciate.
5. Energy-Efficient Windows
ROI: 70-75%
Replacing old, drafty windows with energy-efficient ones is not only appealing to environmentally conscious buyers but also helps lower utility costs. Energy-efficient windows improve comfort, reduce outside noise, and increase the overall aesthetic of the home. Buyers recognize the long-term savings, making it an attractive feature.
6. Deck Addition
ROI: 70-80%
Outdoor living spaces are a big draw for buyers, especially if they’re looking for a place to entertain or relax. Building a deck or upgrading an existing one can provide a great return. Consider using durable, weather-resistant materials, and adding features like built-in seating or lighting for extra appeal.
7. Siding Replacement
ROI: 75-83%
Old, faded, or damaged siding can be a major turnoff for potential buyers. Replacing your siding can give your home a fresh, modern look while also improving its durability and energy efficiency. Vinyl and fiber-cement siding tend to offer the best returns due to their longevity and low maintenance requirements.
8. Attic or Basement Conversion
ROI: 60-75%
Converting unused spaces into functional rooms can significantly increase the value of your home. An attic can become a cozy bedroom or home office, while a basement can be transformed into a media room, gym, or additional living space. This renovation adds square footage to your home, making it more attractive to potential buyers.
9. Roof Replacement
ROI: 65-75%
A new roof not only improves your home’s curb appeal but also reassures buyers that they won’t have to deal with roof repairs anytime soon. If your roof is nearing the end of its lifespan, replacing it can make your home more attractive to buyers and increase its overall value.
10. Upgrading Insulation
ROI: 90-116%
Proper insulation is one of the most cost-effective home improvements, with an excellent ROI. Adding or upgrading insulation in attics, walls, or basements can make your home more energy-efficient, reduce heating and cooling costs, and create a more comfortable living environment. Buyers are increasingly interested in energy-efficient homes, so this upgrade can be a major selling point.
11. Smart Home Upgrades
ROI: 50-65%
Installing smart home technology, such as smart thermostats, lighting, and security systems, can increase your home’s appeal to tech-savvy buyers. While the ROI may not be as high as structural renovations, smart home features offer convenience and are a growing trend among buyers, particularly millennials.
12. Interior Paint
ROI: 50-60%
A fresh coat of paint can transform a home’s interior, making it look cleaner, brighter, and more modern. Neutral colors are often the best choice, as they appeal to a wider range of buyers and make it easier for them to envision their own style in the space. This is one of the most affordable upgrades you can make before listing your home.
13. Front Door Replacement
ROI: 75-90%
A new front door not only boosts curb appeal but also improves security and energy efficiency. Steel doors, in particular, provide excellent durability and insulation, making them a popular choice for homeowners looking to add value to their homes.
14. Upgrade Flooring
ROI: 70-80%
Flooring is one of the first things buyers notice when they walk into a home. Replacing outdated or worn flooring with hardwood, laminate, or luxury vinyl can have a significant impact on the home’s overall appearance and value. High-traffic areas like the kitchen and living room can especially benefit from new flooring.
15. Bathroom Additions
ROI: 60-65%
Adding an extra bathroom or a half-bath can be a great way to increase the value of your home, especially in homes with limited bathrooms. Buyers appreciate the added convenience, and the investment often pays off when it comes time to sell.
Thinking of making some home improvements before selling? The key is to focus on renovations that offer the best return on investment. Contact us at Hanks Realty Group to learn more about which upgrades can help you sell your home for top dollar. Whether you’re considering small improvements or major renovations, we can guide you through the process to ensure you’re making the right decisions.