10 Must-Do Home Renovations to Increase Property Value

Home renovations can be a great way to increase the value of your property, whether you're planning to sell soon or just want to enjoy a more updated living space. But with so many potential projects to choose from, it’s important to know which renovations will deliver the highest return on investment (ROI). Certain upgrades tend to provide better value in the long run than others, both in terms of resale value and overall appeal.

Here’s a look at the home renovations that typically yield the highest ROI, based on industry trends and expert insights.

1. Minor Kitchen Remodel

Kitchens are often considered the heart of the home, and a minor kitchen remodel can go a long way in boosting your property’s value. A minor renovation may involve updating the cabinetry, replacing outdated countertops, installing new appliances, and refreshing the backsplash.

Why it’s worth it:

• The kitchen is a major selling point for potential buyers.

• You don’t have to gut the entire space to make a significant impact.

• You can make cosmetic changes that refresh the space without overspending.

According to Remodeling Magazine’s Cost vs. Value report, a minor kitchen remodel often offers one of the highest ROIs, with homeowners recouping nearly 80% of their investment upon selling.

2. Bathroom Remodel

Bathroom upgrades are another renovation that can provide great returns. Homebuyers pay attention to the condition of bathrooms, especially in older homes where these spaces might be outdated or worn.

What to consider:

• Replacing old fixtures, installing new tile, or adding a fresh coat of paint can give your bathroom a modern, clean look.

• Updating vanities, lighting, and mirrors also adds to the aesthetic appeal without breaking the bank.

A mid-range bathroom remodel can offer an ROI of around 60-70%, making it a smart investment for homeowners looking to add value.

3. Curb Appeal Enhancements

First impressions matter, and the exterior of your home is the first thing buyers or guests will see. Improving curb appeal doesn’t necessarily require a complete overhaul—sometimes small changes can make a huge difference.

What to include:

• Fresh landscaping, such as planting flowers, shrubs, and adding a new lawn.

• Power-washing the driveway, walkways, and exterior of the home.

• Repainting or replacing the front door, adding a new mailbox, or upgrading the house numbers.

Research has shown that enhancing curb appeal can significantly improve your home’s perceived value, with some studies showing up to an 80-100% ROI on landscaping investments.

4. Attic Insulation or Energy-Efficient Upgrades

Energy-efficient upgrades not only help save on utility bills but also appeal to buyers who are looking for eco-friendly homes. Adding or improving attic insulation is one of the most cost-effective ways to increase energy efficiency.

Other energy-efficient updates to consider:

• Upgrading windows to energy-efficient models.

• Installing a programmable thermostat.

• Sealing gaps or cracks in the home’s exterior.

Homeowners can typically see a high ROI for insulation projects, with some reports suggesting an ROI of 100% or more for attic insulation alone.

5. Adding a Deck or Patio

Outdoor living spaces have become increasingly popular, and adding a deck or patio can expand your home’s usable square footage. Whether you’re adding a simple wooden deck or a sophisticated stone patio, outdoor spaces are a big draw for many buyers.

Why it’s a good investment:

• Decks and patios extend the home’s living area and are perfect for entertaining.

• They improve the overall appeal of your yard and can turn an underutilized space into a vibrant area for relaxation.

On average, homeowners can expect an ROI of around 70-80% for adding a deck or patio.

6. Basement Finishing

Turning an unfinished basement into a livable space can offer substantial returns, especially if you’re adding a bedroom, bathroom, or home office. Finished basements provide extra square footage, making the home more attractive to buyers.

What to include:

• Adding a wet bar, a small kitchenette, or a full bathroom can turn the basement into a functional guest suite.

• Consider soundproofing, waterproofing, and making the space light-filled and welcoming.

A finished basement can provide an ROI of 70% or more, depending on the quality of the renovation.

7. Roof Replacement

A new roof not only enhances the overall aesthetic of a home but also provides peace of mind to potential buyers. It’s a high-ticket item, but replacing an aging roof can increase your home’s value and make it stand out in a competitive real estate market.

Why it’s important:

• Buyers are often hesitant about purchasing a home with a roof that may need repairs or replacement in the near future.

• A new roof improves your home’s curb appeal and helps prevent future water damage.

Homeowners who replace their roof typically see an ROI of about 60-70%.

8. Flooring Upgrades

Old or worn-out flooring can be a major turn-off for homebuyers. Replacing outdated carpets with hardwood floors or updating tile can significantly improve the aesthetic of your home and increase its value.

Options to consider:

• Hardwood floors continue to be a popular choice due to their durability and classic look.

• If budget is a concern, luxury vinyl plank (LVP) flooring can provide the look of hardwood without the high cost.

A flooring upgrade can yield an ROI of 70-80% depending on the materials used and the condition of the previous flooring.

9. Window Replacement

Old, drafty windows can make a home less energy-efficient, reduce comfort, and lower curb appeal. Replacing windows with energy-efficient models can improve the aesthetic value of your home while making it more appealing to eco-conscious buyers.

Why it's a good investment:

• Modern windows are more energy-efficient, helping to reduce heating and cooling costs.

• New windows can make your home look fresher and more updated, which is attractive to buyers.

Window replacement typically offers a strong ROI of about 70-80%.

10. Open Concept Floor Plan

Open-concept designs are still popular in modern homes, and opening up your floor plan by removing non-structural walls can create a more spacious and airier feel.

Key benefits:

• It can make small homes feel larger.

• Open spaces are more versatile for modern lifestyles and entertaining.

While more extensive and costly than some other renovations, an open concept can provide a significant return, especially in markets where buyers favor open, fluid spaces.

Conclusion

When considering home renovations, it’s important to focus on projects that will bring the most value in terms of ROI. Minor kitchen and bathroom remodels, energy-efficient upgrades, and improvements to curb appeal tend to offer some of the highest returns. Homeowners looking to boost their property’s value should prioritize renovations that enhance the functionality, appeal, and energy efficiency of their homes, all while staying mindful of budget and market trends.

By focusing on these key renovations, you can increase both the resale value and enjoyment of your home, ensuring that your investment pays off for years to come.