Essential maintenance and upgrades are important for any home. Buying a home means investing time, effort, and money — it is only fitting that you take care of your most significant investment. But what about when the style is starting to look a little dated or the home’s setup isn’t working for you? If you’re looking at completing some home improvements, now may be the right time to start. Do essential home maintenance and other upgrades long before you plan to sell, but keep your return on investment (ROI) in mind. The highest ROI home improvement projects will add value to your home, whether you end up selling in the next six months or ten years later.

Not all home improvement projects are equal, though. A fresh coat of interior paint is easier than renovating a whole outdoor space. Most importantly, some add more value to your home. It is wise to prioritize changes that could potentially raise the home value, especially if you’re looking at commanding a top sale price.

Here are several home upgrades worth considering to maximize your return on investment and overall enjoyment of your home.

Exterior Home Upgrades

Average cost: Varies

Return on investment: Varies

Boost the home’s curb appeal by upping the ante outside. Sometimes it’s as easy as pressure washing, a new coat of paint, and some new landscaping. Those are all projects you can do yourself or hire out. Other exterior upgrades have the biggest return and are critical to your home–like roofing. To give you a benchmark, homeowners paid a national average cost of $29,124 in 2023 to replace asphalt shingles and added 61% to the home’s value, or $17,807. Selecting a different material for roof replacement changes the cost variables, as does geographical area.

Exterior home improvements aren’t limited to updating your roofing or landscape. Window and door replacements count as exterior upgrades, too. A fiber-cement siding replacement had a 88% return on investment in 2023 because of its aesthetic improvement and more desirable material.

If you’re interested in high ROI home improvements, the outdoors is the way to go. Consider:

A New Wood-Clad Garage Door

Replacing a perfectly functional automatic garage door may not seem cost-effective, but at a 103% ROI, it’s hard to pass up. Wood cladding mimics the look of traditional carriage-house doors. The style lends a country ambiance or can be adapted to a sleek and modern design. Either way, the warmth of wood on a large exterior expanse of space adds visual drama and interest. Paint or stain the door to complement the home’s design style, and enjoy the results.

A New Wood Entry Door

If your home’s entry doesn’t evoke an emotional reaction, it might be time for an entry door replacement. Traditional entry doors are made of wood, but more modern ones are now composite or metal materials. Steel adds a layer of security, especially as it can function as a storm-resistant door. Updating the entry door can gain you a 100% ROI. The newest designs have modern features like an integrated window and iron grill. If there’s room, double doors make an elegant statement. Just stay true to the home’s style and know that realtors and appraisers will recognize the value of your upgrade.

An Outdoor Wood Deck

Outdoor spaces have become increasingly important for family enjoyment and entertainment in recent years. Adding extra living space through a wood deck is limited only by creativity, inclination, and budget. Functional decks include built-in bench seating and beams overhead for shade structures. Be it multi-level and encompassing a large part of the backyard or rising in the trees off a home’s second story, outdoor decks add livable space.

Natural wood requires routine maintenance to keep it in tip-top shape. Lower the maintenance burden by choosing a wood that will weather naturally to a muted grey sheen. Even though wood substitutes are readily available, it’s hard to replace the benefits of natural wood in look, price, and installation. 

Exterior home upgrades are vital if you want to sell your house as soon as possible. These projects help raise not only your home value but also your curb appeal or potential buyers’ first impressions of your home.

Over the past five years, exterior home upgrades are consistently among the top five remodeling projects with high ROI.

Garage Door Replacement

Average cost: $4,300

Return on investment: 103% ROI

Since 2018, garage door replacements have been at the top of Remodeling Magazine’s National Cost vs. Value lists. As of 2023, the magazine estimates that homeowners receive an average return over 100% of their renovation budget upon house resale.

If you already have a motorized garage door opener, upgrading your garage door becomes much cheaper. Popular garage door trends you may consider are steel garage doors for a low-maintenance option or glass-paneled garage doors for a clean, contemporary look. Wood is also trending to give homes a more traditional or carriage look.

Aside from the curb appeal benefits, replacing your garage door can help reduce your energy costs. Old garage doors are more likely to leak out air and heat, making your home less energy-efficient, especially during winter. 

Manufactured Stone Veneer Siding

Average cost: More than $10,000 (Dependant on home size and location)

Return on investment: Around 102% ROI

Upgrading your house siding using manufactured stone veneers is another mainstay in many home improvement lists with the best ROI. Since 2018, manufactured stone veneer exteriors are estimated to recoup at least 90% of your budget, and now are seeing above 100% in 2023.

Premium stone veneers are virtually impossible to tell apart from natural stone but are much cheaper. They allow you to add a high-quality architectural look and raise the aesthetic appeal of your house exteriors without paying a premium price.

Moreover, you don’t have to add these stone veneers to the entire exterior wall. Installing it on key areas, such as front entrance archways or at half-wall height around the front looks beautiful. The difference in texture between the upper and lower halves of your house facade provides contrast and has a broad appeal among modern buyers.

Aside from manufactured stone veneers, other house siding upgrades do have a high ROI. Vinyl siding rose in ROI in 2023, up to 95%, while fiber-cement siding replacements provided 85% average ROI.

Backyard Deck Addition

Average cost: Over $17,000

Return on investment: Almost 50% ROI

Forbes noted that contractors and architects reported increased demand for decks, patios, and other outdoor living area upgrades during the pandemic. While demand for that feature has waned as other trends rose, decks and patios are still considered nice to have for many buyers. Your chosen materials affect how much you’ll recoup. If you want to maximize your ROI, then pressure-treated wood is the best material to use. Composite deck materials cost more, and even though by average dollar amount, their recoup cost is higher, the difference between installation cost and resale value drops their ROI to 40%.

Roofing Replacement

Average cost: More than $29,000 for asphalt roofing

Return on investment: Almost 61% ROI

Repairing and upgrading your home’s roof is always a highly recommended home improvement project. Roofing replacements and repairs are even more critical if you live in areas that receive lots of rainfall or are prone to experiencing hurricanes. Your state may have specific laws about how often roofs must be replaced, such as in Florida.

Roofs in severe weather areas are more likely to wear faster. If you decide to replace your roofing material, go for durable and weather-resistant materials like asphalt or metal. 

Remodeling Magazine recommends using fiberglass asphalt shingles with felt or synthetic underlayment. This project can cost an average of $29,256 but allow you to recoup $17,147 if you sell your house.

Metal roofing replacements are popular in certain areas, but their higher cost to install can be a barrier. The national average for a metal roof ran $47,414 and had an ROI of around 49% ROI. There was no available data on tile roofing, but 2023 estimates placed them at $8,202–$24,645 to install. Of course, each roofing material has its own pros and cons that may justify their hefty investment for you.

Landscaping Upgrades

Average cost: Varies

Return on investment: Varies

Landscaping your front yard is one of the most popular ways to boost your home’s curb appeal. More than 94% of real estate agents say that better front yard landscaping helps raise your house’s ability to sell quickly.

Moreover, at least 75% of real estate agents noted that houses with beautiful landscaping could be worth between 1% to 10% more than ones with no landscaping. That is equivalent to at least $2,600 to $26,000 per house with an average price of $266,000.

The potential ROI and cost on this varies too widely to place a figure on it. The size of your yard, the work required, and scope of desired work all play into the landscaping project. Sprucing up the plants along a walkway to the front door is much less than leveling out a backyard, adding a sprinkler system, planting new trees, and some grass. It also makes it harder to do an apple-to-apple on recouped costs when the home sells.

Ultimately, attractive landscaping does help a home appeal to more prospective buyers. If you are tackling your home’s landscaping yourself, here are some tips to ensure a beautiful yet budget-friendly front yard.

• Plant easy-to-maintain perennials and shrubs to avoid dead or withered plants.
• Choose low-maintenance plants and plants native to your area to ensure their growth.
• If you live in areas with cold winters, look for freeze-proof plants or those that can grow back even after a harsh winter.
• If you live in areas with dry climates, choose succulents and other drought-resistant plants.

Interior Home Upgrades

The best part of interior home projects is they can be done anytime, whereas exterior home upgrades may depend on the weather and season. Fall months are generally low seasons for general contractors, so it may be the right time. Hiring contractors during their slow months can help their business. You might also get some seasonal discounts, too!

Although most home upgrades that offer the best ROI are exterior projects, interior home improvements do have enough cost recovery to make them worth considering. That’s especially true for outdated designs that may not appeal to modern buyers.

Minor Kitchen Upgrade

Average cost: Around $26,700

Return on investment: 86%

Kitchen remodels are popular recommendations for homeowners who want to improve their resale value and the overall function of the home’s most important space. After all, the kitchen is one of the most used rooms in the house. It has to work well and match the home design.

Kitchens are also one of the most easily worn down parts of any home. Between hot pans being set on countertops, plumbing that leaks, liquid spills, and overstuffed cabinets, kitchens show their age quickly.

If you have a limited budget and cannot or do not want to do a major kitchen remodel, limit your upgrades to the critical areas first. If you stick to your budget, you can recoup around 86% of your total costs.

What can you do for a minor kitchen remodel? Remodeling Magazine recommends replacing laminate countertops and installing a mid-priced sink and faucet. Replace the flooring with more resilient flooring materials, like floating vinyl planks, ceramic, and other tile options. A new coat of paint on the walls or cabinets and the ceiling can make your kitchen look like a whole new place. You may even budget for new lighting fixtures or stainless steel appliances.

Bathroom Upgrades

Average cost: More than $24,600

Return on investment: Around 67% ROI

Like kitchens, bathroom renovations are popular home upgrades. Again, like kitchens, the water pipes and constant use make bathrooms more susceptible to damage and need repairs.

Maximize your bath remodel by sticking to a midrange budgetl. Although bathrooms are much smaller than kitchens, renovating one can cost as much or even more than your kitchen if you’re not careful.

A mid-range bathroom remodel gives you a 67% average ROI. If you can stick to a budget of $24,600, you can recoup just over $16,000.

But what about if you need a bathroom remodel for accessible purposes? A more universal design, with accessible showers, toilets, and lighting, costs an average of $39,000 with a 46% return.

If that budget does get away from you and you spring for a full master bathroom remodel with upscale features, it can quickly become one of the more expensive renovations. Homeowners paid an average of $79,600 with a 37% return. On the upside, a full remodel replaces all the bathroom flooring and fixtures, adds a tile shower, and, if room allows, adds a new tub. 

Other trending options are to install a solid-surface vanity counter and sink and put in a recessed medicine cabinet with matching lights.

Master Suite Addition

Average cost: $157,000

Return on investment: Varies

Master suite additions may be a costly project, but depending on your local real estate market, there is potential for a high ROI. Estimates place a midrange master suite addition between $50,000 to $157,000. Meanwhile, an upscale version of the project can set you back over $325,000.

A 24×16-foot master bedroom suite addition still falls under the mid-range category. This gives you enough space for a small walk-in closet and dressing area, an ensuite bathroom with a soaker tub, a ceramic tile shower, and double sink counters.

As for the potential ROI, look at the local real estate numbers of average price per square foot. Take how square footage you have added to the home and multiply it. That’s a rough idea on the average return when the home sells. Generally, it’s between 23-30%.

Depending on your budget, here are some design ideas to further elevate your master bedroom:

• Install a bay window with banquette seating.
• Choose an eye-catching light fixture.
• Use mirrors and sliding cabinet doors to give the illusion of a bigger space.
• Ensure the room gets a lot of natural light.
• Have a door leading to the backyard or deck.

Hardwood Floor Upgrade

Average cost: $3,500 for refinishing

Return on investment: Up to 147%

The state of your home’s floors can make or break a potential sale. Real hardwood floors offer up to 70% to 80% ROI for your home. Those in good shape, like being recently refinished, add even more value. Just by installing new hardwood floors, an average cost of $5,500, you can realize an average ROI of 118%.

Upgrading from laminates to hardwood floors can be costly, though. The project can cost anywhere between $6 to $12 per square foot, including material and labor costs. The wood type and flooring style you choose can also bring the price up or down.

Here are a few affordable hardwood floor options:

• Pine: Rustic feel, light beige to golden amber color, starts at $4.50 per square foot
• Bamboo: Hard and durable, pale yellow to green color, starts at $5 per square foot
• Hickory: Ideal for high-traffic areas, wide color variation, starts at $6 per square foot

Simply refinishing existing hardwood floors can also raise your total home value. You may even potentially recoup 100% of the costs upon a successful sale.

Basement Renovation

Average cost: $20,000

Return on investment: Around 70% to 75%

When it comes to home improvements, finishing or renovating your existing basement is always a good idea. A finished basement can put your house in a higher price bracket, thanks to the added heated square footage.

Homeowners typically spend an average of $20,000 to finish an existing basement. However, depending on the materials, decor, and other project requirements, the budget may exceed $30,000. Even with the high costs, the silver lining is that you stand to recover up to 70% of the costs.

Keep your basement renovation costs down by choosing materials carefully and logically. Hardwood floors may be great for the rest of the house but are terrible for basements due to the moisture.

A finished basement can be used as an additional living space, a game area, or a guest bedroom. Another great idea is to turn your basement into an independent living space with a walkout so that you can rent it. If you do decide to rent out your remodeled basement, you can slowly recoup your budget without selling the entire house.

Better Home Efficiency Upgrades

Home improvements that boost energy efficiency are among the most significant house upgrades of the past few years. People love their efficient smart homes. Innovative home systems, greater accessibility to alternative energy sources, and potential tax credits are fueling the interest. 

Not only that, but energy-efficient homes are also more environmentally friendly and offer healthier, clean living conditions for the residents.

Here are six home upgrades to improve your home’s energy efficiency.

Vinyl Window Replacement

Average cost: Nearly $20,000

Return on investment: Almost 69%

Upgrading your windows improves both your home’s aesthetic appeal and energy efficiency.

An old, drafty, and creaky window is not only terrible to hear and look at, but it can also contribute to higher heating bills. Window drafts can let out up to 30% of your home’s heating or air conditioning, which significantly reduces the efficiency of your HVAC system.

Vinyl windows are ideal replacements for old windows. It offers nearly 70% in returns, and the average project costs are less than $20,000. New wood windows are good options, too. However, it offers a slightly lower ROI at 61% while costing over $20,000.

Front Entrance Upgrade

Average cost: Starts at $2,000

Return on investment: Around 65%

Front door upgrades are instant curb appeal enhancers. You can go as simple as changing the front door material and freshening up the paint job.

The home renovation trend in 2023 is to create a grand entrance. Think wider doors with dual sidelights, or custom entry doors with upgraded light fixtures. This can cost over $10,000, with a 50% average return.

If you have a limited budget and want to improve curb appeal and energy efficiency, switching to a steel door is an option. This project costs a little over $2,000 and offers 65% ROI aesthetically. In terms of energy efficiency, you can yield as much as 100% ROI.

Just like your window upgrades, a new steel door would help you maintain your desired home temperature.

Solar Panels Installation

Average cost: About $18,000 on a 6kW system

Return on investment: Around 20% in the first year

Installing solar panels is one of the biggest trends in sustainable construction. Having solar panels in your home brings down your electricity bill, sometimes to $0 depending on the system. Federal tax credits are helping encourage these energy-efficient home upgrades.

Best of all, you don’t have to sell your house to recoup the installation costs. Some estimate having solar power will save you $50,000-$90,000 in utility bills over the life of the system. In some states, owners can cash in on your investment by selling the solar energy back to your local power grid.

And if you are looking to sell your home, you’ll find that over 80% of home buyers now include solar panels and other energy-efficient home additions in their list of must-have features. Owned systems can bump a home’s overall appraisal value by 4.1%.

Insulation and Sealant Upgrade

Average cost: Around $2,400 for spray foam

Return on investment: Up to 100%

Insulation and sealant upgrades may sound too simple, especially after going over kitchen remodels and solar panel installation. As such, many homeowners overlook and neglect this home upgrade.

However, it is a crucial update if you want better energy efficiency at home. Just like replacing old, drafty windows and doors helps improve temperature control inside, so do insulation and sealant upgrades.

There are different types of insulation materials on the market with their pros and cons. If your goal is to ensure a near-airtight thermal barrier, your best bet is spray foam insulation. 

Switch to LED Lights

Average cost: $5 per light bulb

Return on investment: Up to 63% based on energy efficiency alone

LED or light-emitting diode bulbs are nothing new. Many new homes across various states already come with LED lights.

LED light bulbs are the most energy-efficient lighting option. They use over 75% less energy than traditional incandescent light bulbs and last up to 25 times longer. Although LEDs use up less energy, they offer comparable or even brighter light than other light bulbs.

Smart Thermostats

Average cost: Between $250 to $350

Return on investment: Around 70% from energy savings

Data shows that installing a smart or programmable thermostat can save between 10% to 12% in heating and up to 15% in cooling costs. Other findings find that smart thermostats save up to 23% overall on heating and cooling.

With this information, customers can potentially save up to $200 from their energy or electricity bills. It’s all a major of programming the thermostat to optimize the temperature when you are and aren’t home.

Better Homes, Better Life

Many home improvements can yield high returns and improve your overall enjoyment of living in your home. Make sure to carefully consider each one based on your budget, your needs, and the timing. The highest ROI home improvement projects tend to boost the home’s appearance and function in one swoop.

Updated July 2024