What Improvements Generate a Great Return on Your Home?

What improvements should you make before selling

What Improvements Generate a Great Return on Your Home?
Thinking about home improvements often conjures images of luxury renovations or extravagant additions. However, not all upgrades are created equal when it comes to increasing the value of your home. In this guide, we’ll explore the top improvements that not only enhance your living space but also generate a significant return on investment (ROI).

Curb Appeal Enhancements

First impressions matter, especially in real estate. Enhancing your home’s curb appeal can significantly boost its value. Simple yet impactful upgrades like landscaping, exterior painting, and replacing the front door can instantly elevate the overall look of your property.

Kitchen Renovations

The kitchen is often considered the heart of the home and a focal point for potential buyers. Investing in kitchen renovations can yield high returns. From upgrading appliances to refinishing cabinets and replacing countertops, there are various ways to modernize your kitchen while increasing its value.

Bathroom Remodeling

Updating bathrooms is another surefire way to add value to your home. Whether it’s replacing fixtures, adding energy-efficient features, or enhancing storage space, a well-designed and functional bathroom can greatly appeal to prospective buyers.

Energy Efficiency Upgrades

In today’s environmentally conscious world, energy-efficient homes are highly sought after. Investing in upgrades such as solar panels, energy-efficient windows, and improved insulation not only reduces utility bills but also enhances the marketability of your home.

Smart Home Technology Integration

The integration of smart home technology has become increasingly popular among homeowners. Installing smart thermostats, security systems, and lighting solutions not only adds convenience but also increases the perceived value of your property.

Basement Finishing

Transforming an unfinished basement into usable living space can significantly increase your home’s value. Whether it’s creating a recreation room, home gym, or additional bedrooms, a finished basement adds both square footage and functionality.

Adding a Deck or Patio

Expanding outdoor living space with a deck or patio is a desirable feature for many homebuyers. When properly designed and constructed, outdoor living areas can provide a high ROI while enhancing the overall enjoyment of your home.

Upgrading Home Systems

Investing in essential home systems such as HVAC, plumbing, and electrical can enhance both comfort and safety. Upgrading to energy-efficient appliances and installing a water filtration system are also wise investments that can improve your home’s value.

Interior Painting

A fresh coat of paint can work wonders in transforming the look and feel of your home. Whether it’s updating outdated colors or refreshing walls with trending hues, interior painting is a cost-effective way to increase your home’s appeal to potential buyers.

Investing in Flooring

Quality flooring is a feature that homebuyers often prioritize. Whether you choose hardwood, carpet, or tile, investing in durable and visually appealing flooring options can significantly enhance your home’s value and aesthetic appeal.

Creating a Home Office

With remote work becoming increasingly prevalent, having a dedicated home office is highly desirable. Designing a functional workspace with ergonomic furniture and ample natural light can make your home more attractive to potential buyers.

Adding Storage Solutions

Effective storage solutions can make a big difference in the functionality of your home. Built-in shelving units, closet organizers, and garage storage systems not only help declutter your space but also enhance its overall organization and appeal.

Improving Home Security

Enhancing home security is always a worthwhile investment. Installing surveillance cameras, upgrading locks, and implementing a monitored alarm system can provide peace of mind for you and added security for potential buyers.


Investing in home improvements is not only about enhancing your living space but also about maximizing the return on your investment. By focusing on strategic upgrades that offer both aesthetic appeal and practical functionality, you can significantly increase the value of your home while creating a more enjoyable living environment.


How much should I budget for home improvements? Budgeting for home improvements depends on the scope of the project and your financial situation. It’s essential to prioritize upgrades that offer the highest ROI.
Which home improvements add the most value? Kitchen and bathroom renovations, energy efficiency upgrades, and curb appeal enhancements are among the home improvements that typically add the most value to a property.
Do I need to hire professionals for home renovations? While some home improvement projects can be DIY-friendly, others may require professional expertise. It’s crucial to assess your skills and the complexity of the project before deciding whether to hire professionals.
How long does it take to see a return on investment from home improvements? The timeline for seeing a return on investment from home improvements varies depending on the type of upgrade and market conditions. In general, strategic improvements can yield positive returns over time.
Are there any tax benefits for home improvements? While there may be tax benefits for certain energy-efficient upgrades or home renovations, it’s essential to consult with a tax professional to understand the specific deductions or credits available in your situation.

Speaker 1:
Hey there. Are you interested in finding out what improvements you should be making to your home in order to get the greatest rate of return? Hang tight, I’m going to tell you what the top six things are.

Hey, everybody. Listen, we had a situation that comes up quite often. I had a client recently ask me, “Hey, what kind of repairs do I need to make to the house in order to get the most money that I possibly can when I turn around and sell it?” So I’m going to go through the list of probably six or seven of the items that we see that most sellers will be able to get the most bang for their buck. So we all know, and probably have heard, that before you put a house on the market, you’ve got to do some repairs, right? Some of them are going to be required in order to attract enough buyers to be able to get enough interest in the property, and others are kind of optional. So I’m going to kind of sort through how we work with clients, and maybe that’ll answer some of these questions.

So the very, very first thing that we usually look at and talk to people about as far as the greatest return on investment is remodeling kitchens and baths. Now, you probably have already heard about that, but it is still true today. Those are the two primary areas that the majority of buyers are most focused on when looking at new property. So having an updated, clean, functional bedroom, or I’m sorry, a bathroom and a kitchen, are going to be super-duper important.

Now, to what extent are you going to remodel? That really depends on your price point. So depending on your price point and what is acceptable in the market area is going to be really key. There is no blanket answer for this. You’re going to have to get a seasoned agent that really understands the market area and understands these numbers to be able to guide you through what is really going to be needed when you do your renovation work. But overall, generally kitchen and baths probably have the greatest return out of any improvement that you can make. We’re seeing anywhere from 95% to even 98% return on every dollar that you invest into your kitchen and baths.

Another area, number two that comes up quite often and has really got a great return, and that is siding. So if you have an older house, maybe it was built before the year 2000, you may have wood siding or Masonite, or even vinyl siding that may not be in the greatest of condition, we’re finding when we replace the siding with a cement board, we’re getting a great return on investment with those. Now, what is a great return? Again, it depends on exactly where you’re at and your price point, but we’re seeing like 95 to about 98% return when we put brand new siding on a property. So that’s another area that you’re really going to want to focus on.

Here’s number three: exterior decks or outside living. A lot of the older homes, if you’ve got a home that’s 20, 20 plus years old, really check out that deck. If you haven’t been maintaining it and keeping it in great condition, number one, it’s going to be really outdated as far as current codes are concerned. In most of the areas that we work, codes have changed quite a bit, so it’s always going to get flagged by a home inspector. And then you’ve got to go back, and you’ve got to negotiate, and, “Well, it was grandfathered in and this wasn’t,” it’s a hassle. And there’s a whole safety issue involved with decks as well. So if you have an older deck, replacing the deck or refurbishing it is going to be really, really important. What’s the return on what we’re seeing with decks, is about 90%. So 90 cents on every dollar that you invest into a deck is about what you can get back, again in most market areas and in most price points.

The other weird one that we’re seeing is steel doors, entry doors. So you have an exterior door. Now, there is a difference between an exterior door and an interior door, and when I say steel doors, I’m talking about an exterior door that’s got a little more security to it than an inside door. A lot of those, if you’ve got an older home that’s been around for a while, a lot of the molding and the framework is dry rot, and it’s not sealed really well. Maybe the doorframe has kind of jammed up a little bit and doesn’t really fit all that well, so replace those. We’re seeing about a 92 to 96% return on when you replace those exterior doors. So that’s another really, really good one to take care of.

The other thing that we really like, and this is a decorative thing, is the manufactured stone veneer. Now, the decorative stone that you see on a lot of the houses over a certain period of years, it starts deteriorating. Some of that starts falling off. It’s simply a veneer. It’s not a structural component to the house itself. It’s strictly cosmetic. However, if you aren’t really keeping it maintained and looking really, really good, that’s been a really big issue. A lot of people don’t like that. It’s just an eyesore. So take care of your exterior veneer stone if you currently have it, just make sure it’s in great condition and it’s in and it’s well, and it’s not falling apart. If you don’t have any veneer stone, and maybe you have just like a concrete wall, really spruce it up. The exterior stone veneer, the manufactured stone veneer really pretties it up. What kind of return are we seeing? Not as great as we see with some of the other items, but about 80 to 85% return on every dollar that you spend on your exterior veneer.

And then the last one that we see a great return on is your garage doors. Again, if you have an older property that has garage doors that have been there for a while, maybe they’re faded, they squeak, they’re loud, they creak, you may want to take a look at replacing those. Garage doors and garage door openers in today’s market right now are super quiet. They’re usually insulated, and man, do they make a big difference. Not only just aesthetically, but people love how quiet brand new garage doors are. They look great, they sound great, they don’t wake everybody up in the house when you actually hit the garage door. They’re a beautiful thing. Hey, the return on our garage doors when you replace them in most price points in most areas is about 95 to 98%. So that’s great. That’s a really good return.

So those are some of the highlights of the things that we see with the greatest return on some of the improvements that you can make to your property before you sell it. So you may be asking, “Why in the world am I going to do any of this stuff when I can’t get at least 100% or more? I want to invest $20,000 into the house and I want to get $40,000 back. I want to double my money.” That’s just unrealistic. So why are you doing all these improvements? To attract buyers. When you have a home that is not in great condition, not perfect condition, not perfect, no one’s expecting perfect, but it’s got to be in great condition. Really, really good condition, it shows well. That’s how you attract buyers, and as we are in this shifting market, attracting buyers is going to be really, really important. So you may have to spend a little bit of money in order to attract the pool of people in order to get yourself top dollar. So that’s why you’re investing all this money back into your home, and hopefully that really helps.

If you want to drill down and find out specifically on your property, reach out to us. We’d be more than happy to talk to you about it. Just make sure you get a seasoned agent that really understands the market area, your neighborhood, and can talk to you about exactly how to get top dollar. Hopefully this was helpful and everybody’s having a great day. Thanks.

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