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Discover which home improvements and remodeling projects offer the highest return on investment when it's time to sell your home.
Photo: Alain Pinel Realtors, a member of Luxury Portfolio International. From: Alain Pinel Realtors.
Smart Strategies for Investing in Your Home
If you're considering home renovations, it's essential to choose upgrades that offer a solid return on investment (ROI). While enjoying your improvements is important, it’s also wise to consider how they’ll affect your home’s resale value. Remodeling Magazine's annual Cost vs. Value Report is a reliable source for understanding which projects deliver the best value in the U.S. We've compiled the highlights and included expert tips to help you invest wisely in your home.
Photo: Thomas Story. From: Lauren Nelson.
1. Garage Door Replacement
Average ROI: 193.9%
Cost: $4,513
Resale Value: $8,751
Replacing a garage door may not be the most exciting project when it comes to home improvements, but its impact on your home’s overall appeal and value is substantial. As one of the most visible components of a home’s façade, the garage door plays a critical role in creating a strong first impression. For a 16' x 7' garage door replacement, expect an average cost of around $4,513. In terms of resale, however, you stand to gain significantly, with an average return of $8,751 — nearly double your initial investment.
When choosing a new garage door, the material is one of the most important factors. Steel doors tend to be more affordable and durable, but they lack the warmth and charm that wood doors provide. Although wood can be more expensive, many homeowners prefer its classic, natural aesthetic. Composite wood offers a balance between price and maintenance since it delivers the appearance of real wood while being more resilient to wear and tear. Additionally, doors with higher insulation ratings (minimum R-12) are ideal if you live in a colder climate, as they help maintain interior temperatures and reduce energy costs. Choosing a garage door that complements your home’s style can dramatically enhance curb appeal, making it a wise investment, especially for resale.
Photo: © Royalty-Free/Corbis
2. Entry Door Replacement (Steel)
Average ROI: 188.1%
Cost: $2,355
Resale Value: $4,430
Your entry door is often the first point of interaction that prospective buyers will have with your home, so it’s vital to make it count. Replacing your current entry door with a steel door can make a dramatic difference in both appearance and security, all while offering a substantial return on investment. With an average replacement cost of $2,355, you can expect to recoup $4,430 upon resale — an impressive return.
Steel doors are popular for their affordability, strength, and energy efficiency. When opting for a steel door, consider adding dual-pane glass panels to allow natural light to brighten the entryway without sacrificing security. While it’s tempting to choose a bold color for your entry door, keep in mind that overly unique or loud choices can alienate potential buyers. It’s often better to select something classic that complements the rest of the home’s exterior. For those looking for an upgrade, fiberglass doors are another option that offers enhanced insulation and more style variety. Wood doors are typically the most expensive but are favored for their rich texture and premium feel. No matter which material you choose, ensuring your front door is attractive and functional will contribute to both the comfort of your home and its market value.
Photo: Robert Peterson, Rustic White Photography. From: Tiffany Brooks.
3. Manufactured Stone Veneer
Average ROI: 153.2%
Cost: $11,287
Resale Value: $17,291
For homeowners looking to enhance their property’s exterior without the steep price tag of natural stone, manufactured stone veneer is an attractive and practical alternative. This durable material mimics the look of natural stone while being significantly easier to install and maintain. Adding 300 square feet of manufactured stone veneer to the bottom third of your home’s façade costs about $11,287 on average, with a potential resale return of $17,291 — a strong selling point for many buyers.
Manufactured stone veneer comes in various colors and textures, allowing you to choose a style that best complements your home’s architecture. For example, homes with a rustic or Craftsman aesthetic may benefit from irregular shapes and rough textures, while modern or contemporary homes might lean toward cleaner, rectangular shapes and smoother surfaces. Consider choosing a color palette that harmonizes with your home’s siding or trim to create a cohesive look. Beige-and-cream tones or gray-and-blue combinations are common favorites that blend well with various architectural styles. Investing in stone veneer not only enhances curb appeal but also adds a level of sophistication and value to your home that can attract potential buyers.
Photo: Bender & Associates Architects. From: Bender & Associates.
4. Minor Kitchen Remodel
Average ROI: 96.1%
Cost: $27,492
Resale Value: $26,406
The kitchen is often considered the heart of the home, and even a minor remodel can have a significant impact on both its functionality and aesthetic appeal. The average cost of a minor kitchen remodel is about $27,492, and you can expect to recoup nearly all of that — around $26,406 — when you sell. This type of remodel typically involves updating 30 feet of cabinets and drawers with new hardware or refinishing them, as well as upgrading the countertops, replacing outdated appliances with energy-efficient models, and installing new flooring and lighting.
If you’re looking to make your kitchen more modern without a major overhaul, consider refreshing the existing cabinets with a coat of paint and new handles, which can make them look brand-new for a fraction of the cost. Updating countertops with affordable yet stylish materials like laminate or quartz can also elevate the look of your kitchen. Additionally, swapping out old light fixtures for modern, energy-efficient recessed lights can brighten up the space and make it feel more open. Don’t overlook flooring, either — vinyl or laminate flooring is cost-effective and durable, while materials like engineered wood or tile can offer a more luxurious feel without breaking the bank. A minor kitchen remodel can dramatically boost your home’s appeal to buyers while keeping your budget in check.
Photo: Pintrest
5. Siding Replacement (Fiber Cement)
Average ROI: 88.4%
Cost: $20,619
Resale Value: $18,230
Boosting your home’s curb appeal with new siding can make a lasting impression on buyers, and fiber cement siding offers one of the best returns on investment for this type of project. On average, replacing 1,250 square feet of siding with fiber cement costs about $20,619, and you can expect to recoup $18,230 when you sell. This durable, low-maintenance material mimics the look of wood or stucco, offering flexibility in design while standing up to the elements far better than other siding options.
Fiber cement siding comes in various styles, including vertical planks, horizontal lap siding, and even shingles, allowing you to customize your home’s exterior to suit your taste. Although it’s more expensive than vinyl siding, fiber cement’s longevity and durability make it a smart choice for homeowners who want to minimize maintenance over time. If fiber cement exceeds your budget, vinyl siding is a viable alternative that still provides an excellent return on investment, though it’s less durable. Updating your siding can dramatically enhance the exterior appearance of your home, making it more attractive to buyers and giving you a solid return on your investment.
Photo: Laurey Glenn
6. Deck Addition (Wood)
Average ROI: 82.9%
Cost: $17,615
Resale Value: $14,596
Expanding your outdoor living space with a wood deck is a great way to increase your home’s value while providing a functional area for leisure and entertainment. Adding a 16’ x 20’ pressure-treated wood deck with basic features like a built-in bench, railing, and stairs costs around $17,615 on average, with a resale return of about $14,596. This project is especially appealing to homeowners who enjoy outdoor activities, such as grilling, hosting dinner parties, or simply relaxing in the open air.
Wood decks are particularly popular for their natural appearance, adding warmth and character to your outdoor space. If you’re interested in materials that require less upkeep, composite decking is another option, though it costs more upfront. Besides the deck material, you can enhance your deck’s aesthetic by adding planters, lighting, or mature plants to create a cozy, inviting atmosphere. For homeowners concerned about practicality and safety, ensuring that the deck’s railings and stairs are in good condition is critical for both aesthetics and functionality. A well-built deck can provide years of enjoyment and significantly boost your home’s appeal when it’s time to sell.
Photo: David Tsay. From: HGTV Magazine.
7. Mid-Range Bathroom Remodel
Average ROI: 73.7%
Cost: $25,251
Resale Value: $18,613
A mid-range bathroom remodel involves replacing key fixtures like the bathtub, sink, and vanity while updating the tile, flooring, and lighting. This type of remodel typically costs about $25,251, with an average return of $18,613 at resale. While a full bathroom overhaul might be necessary for older homes, small updates can go a long way in freshening up the space and adding value to your home.
For instance, if replacing the bathtub isn’t feasible due to budget constraints or space limitations, consider re-glazing it to give it a like-new finish for a fraction of the cost. Other cost-effective updates include re-caulking the tub, replacing old faucets, or installing new light fixtures to modernize the space. Small changes, such as replacing the shower door with a frameless glass option or opting for a sleek, minimalist vanity, can also create the illusion of more space. Fresh paint and updated hardware can complete the transformation without breaking the bank. A mid-range bathroom remodel strikes a balance between cost and impact, providing a solid return while refreshing one of the most important rooms in your home.
Photo: Eric Roth Photography. From: Martha's Vineyard Interior Design.
8. Window Replacement (Vinyl)
Average ROI: 67.1%
Cost: $21,264
Resale Value: $14,270
Upgrading your windows with energy-efficient vinyl replacements can have a notable impact on both your home’s aesthetic and functionality. On average, the cost of replacing 10 existing 3’ x 5’ double-hung windows with vinyl is about $20,091, with an expected return of $14,597 at resale. This project not only enhances curb appeal but also improves energy efficiency, which is increasingly attractive to potential buyers.
Vinyl windows are known for their durability, low maintenance, and affordability compared to other options like wood or aluminum. They provide excellent insulation, helping to lower energy bills, particularly in regions with extreme weather conditions. Moreover, modern vinyl windows come in a variety of styles, including casement, sliding, and picture windows, allowing homeowners to choose designs that match their home’s architecture. Opt for energy-efficient options with double or triple-pane glass and low-E coatings to further reduce heating and cooling costs. While replacing windows may not have the highest return on investment, the added comfort, energy savings, and increased curb appeal make it a smart long-term decision.
Photo: Pintrest
9. HVAC Conversion/Electrification
Average ROI: 66.1%
Cost: $18,800
Resale Value: $12,422
Converting your home’s HVAC system from a traditional furnace or boiler to an electric heat pump is a smart, forward-thinking upgrade that can significantly boost energy efficiency while reducing your environmental impact. The average cost of this conversion is approximately $18,800, with a resale value of $12,422, making it a worthwhile investment with an average return of 66.1%. As the demand for energy-efficient homes continues to grow, more buyers are looking for properties equipped with modern, eco-friendly heating and cooling systems.
An electric heat pump works by transferring heat rather than generating it, making it far more efficient than conventional systems. In mild climates, air-source heat pumps are a popular choice because they can effectively heat and cool homes throughout the year by drawing heat from the air outside. However, in regions with more extreme temperatures, such as very cold winters, a geothermal heat pump may be a better option. These systems harness the constant temperature of the earth below the frost line to provide reliable, consistent heating and cooling throughout the year, regardless of outdoor conditions. While the upfront cost of a geothermal system is higher, the long-term savings on energy bills can be substantial.
In addition to energy savings, converting to an electric HVAC system reduces your reliance on fossil fuels, lowers your home’s carbon footprint, and future-proofs your property as more local governments move toward electrification mandates to combat climate change. Some utility companies even offer incentives or rebates for homeowners who switch to electric heat pumps, further offsetting the cost of the project. With the growing focus on sustainable living and energy efficiency, this upgrade can make your home more attractive to environmentally-conscious buyers while also providing you with increased comfort and long-term financial benefits.
Photo: Susan Law Cain
10. Roofing Replacement (Asphalt Shingles)
Average ROI: 56.9%
Cost: $30,680
Resale Value: $17,461
Metal roofing has become increasingly popular due to its durability, longevity, and sleek, modern appearance. The average cost of replacing a roof with standing seam metal is about $56,307, with a return of $31,133 at resale. While the initial cost is higher than asphalt shingles, metal roofs can last 50 years or more, making them a worthwhile investment for homeowners planning to stay in their homes for the long term.
Metal roofing offers several benefits beyond just longevity. It's highly resistant to severe weather, including wind, rain, and snow, and is fire-resistant, making it a smart choice for homes in areas prone to wildfires. Additionally, metal roofs are energy-efficient, reflecting more sunlight than traditional shingles and helping to reduce cooling costs. For homeowners interested in sustainability, metal roofs are often made from recycled materials and are fully recyclable at the end of their lifespan. Available in a variety of colors and styles, metal roofs can complement both modern and traditional homes, providing a sleek, high-end appearance that appeals to discerning buyers. While the return on investment may not be immediate, the long-term savings on maintenance and energy costs make metal roofing an attractive option for many homeowners.
Photo: Daniel Contelmo Jr.. From: Daniel Contelmo.
11. Major Kitchen Remodel
Average ROI: 49.5%
Cost: $79,982
Resale Value: $39,587
A major kitchen remodel is a significant investment, but it can transform your home’s most important space into a modern, functional, and beautiful area. This project typically involves a complete overhaul, including the replacement of cabinets, countertops, appliances, flooring, and lighting. The average cost of a major kitchen remodel is about $80,809, with an expected return of $40,873 at resale. While the return on investment is lower than other projects, a well-executed kitchen remodel can drastically enhance your day-to-day living experience.
When planning a major kitchen remodel, it’s essential to focus on both functionality and style. Open floor plans, large kitchen islands, and high-end appliances can make your kitchen more conducive to cooking and entertaining. Consider integrating smart technology, such as touchless faucets, programmable ovens, and energy-efficient lighting, to elevate the kitchen’s convenience. High-quality materials, such as granite or quartz countertops, custom cabinetry, and hardwood or tile flooring, ensure that the remodel will stand the test of time. While this project is a significant expense, it also allows you to create a custom kitchen that meets your specific needs, enhancing both your home’s functionality and marketability.
Photo: Ryan Garvin. From: Prairie.
12. Upscale Bathroom Remodel
Average ROI: 45.1%
Cost: $78,840
Resale Value: $35,591
An upscale bathroom remodel takes an ordinary space and transforms it into a luxurious retreat. This type of project typically involves expanding a small bathroom, such as a 35-square-foot area, to a more spacious 100-square-foot layout. The remodel includes high-end features such as a neo-angle shower with sleek ceramic tiles and a glass enclosure, as well as a relaxing soaker tub for added comfort. Stone countertops with double sinks, new cabinetry, ceramic floor tiles, and in-floor heating further enhance the bathroom's elegance. On average, the cost for this extensive upgrade is around $78,840, with a potential resale value return of $35,591.
When planning an upscale bathroom remodel, consider starting with the flooring. Swapping old, worn-out floors for fresh ceramic or stone tiles can offer a solid return on your investment. Ceramic tiles, in particular, are a popular choice due to their moisture resistance and a wide array of colors and patterns. Purchasing extra tiles upfront is a smart move, as it ensures you have backups in case any break during installation or future repairs are needed.
Another major consideration is cabinetry. The style and materials you choose for your cabinets significantly influence the overall cost of the remodel. Stock cabinets are a cost-effective option, while custom cabinets are a more expensive but personalized choice. Opt for a style that complements the overall design, such as modern farmhouse or sleek contemporary. However, avoid wood veneers in a bathroom setting, as they don’t hold up well in humid environments.
Finally, if your home only has one bathroom, consider the benefits of investing in an additional bathroom instead of spending heavily on a remodel. Adding another bathroom might be a better use of your funds and could increase your home's overall value more effectively.
Photo: Matt Blair. From: Christina Hall.
13. Primary Suite Addition (Mid-Range)
Average ROI: 35.5%
Cost: $164,649
Resale Value: $58,484
Adding a primary bedroom suite can be one of the most transformative changes you can make to your home, offering both personal comfort and an increase in resale value. Typically, this project involves constructing a 24’ x 16’ bedroom suite, complete with features like a walk-in closet, a freestanding tub, a ceramic tile shower, and a double-sink vanity. This luxurious addition comes with an average cost of $164,649, with a potential resale return of $58,484.
There are many factors that can affect the overall cost of adding a primary suite. For instance, building the suite over a crawl space can help reduce expenses, as it eliminates the need for an additional foundation. However, you may still need to account for new roof framing, exterior siding, insulation, and the costs of installing plumbing and electrical systems. Choose flooring materials that fit your budget and desired aesthetic—whether it be hardwood, tile, or carpet. Adding upscale features such as modern light fixtures or high-end plumbing fixtures can also enhance the suite’s luxurious appeal.
To keep costs in check, it's important to establish a clear budget early in the planning process. With this in place, you can prioritize the materials and design elements that matter most, ensuring that you get the most value from your investment while enjoying a beautiful, comfortable retreat in your own home.
Photo: John Moery. From: Custom Design & Construction.
14. Mid-Range Bathroom Addition
Average ROI: 34.7%
Cost: $58,586
Resale Value: $20,334
A mid-range bathroom addition can provide a significant boost to your home’s resale value, especially in homes that are short on bathrooms compared to other properties on the market. According to the National Association of Home Builders, many buyers prefer homes with at least two bathrooms, and the demand increases for homes with 2.5 or more bathrooms. The average cost of adding a 6’ x 8’ bathroom is $58,586, with a potential resale value of $20,334.
This typical bathroom addition often includes a fiberglass tub and shower, surrounded by ceramic tile, along with ceramic tile flooring for a cohesive and modern look. The overall cost of the project may vary depending on factors like access to existing plumbing or the need for additional infrastructure work. It’s also crucial to consult local building codes, as you may need permits for various aspects of the construction.
One of the larger considerations for a bathroom addition is the type of vanity. The style, size, and price of the vanity will greatly influence the overall aesthetic and cost of the bathroom. A ceramic pedestal sink offers a space-saving, budget-friendly option, especially in smaller bathrooms. If you have more space and flexibility in your budget, you might consider a larger double-sink vanity with wood cabinetry for a more upscale feel. Balancing your budget with the right materials and fixtures will help ensure that your bathroom addition is both functional and appealing without overspending.
In conclusion, selecting the right home updates can significantly impact both your enjoyment of your space and your home’s resale value. Investing in projects that offer a strong return on investment (ROI) ensures that your renovations not only enhance your living experience but also contribute to the financial value of your property. According to Remodeling Magazine’s annual Cost vs. Value Report, replacing a garage door yields the highest ROI, with an impressive average return of 193.9%. This demonstrates the substantial impact even seemingly modest improvements can have on your home's appeal and value.
When planning your renovations, consider focusing on high-ROI projects such as garage door replacements and entry door upgrades, which provide exceptional value for their cost. Other worthwhile investments include mid-range bathroom remodels and window replacements, which also offer solid returns. By strategically choosing upgrades that align with your budget and priorities, you can maximize both your current enjoyment and future financial benefits. Prioritizing projects with proven ROI potential will help you make informed decisions, ensuring that your investments pay off in both the short and long term. If you’re contemplating home upgrades, we at BMB Remodeling Inc. are here to help guide you through the process and ensure you make the most of your investment. Feel free to reach out to us to discuss how we can assist with your next renovation project.
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