Published June 17, 2025

Which Home Renovations Have the Best ROI? Smart updates that can boost your home’s value without breaking the bank

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Written by Jennifer Sue

Couple, one holding a drill the other holding a paint roller

Not all home renovations are created equal—especially when it comes to resale value. If you’re thinking about making improvements, whether you're planning to list your home or just want to invest wisely, it helps to know which updates actually pay off.

Here’s a breakdown of renovations that typically offer the best return on investment (ROI), plus a few that are worth thinking twice about.

1. Kitchen Refresh (Not a Full Remodel)

A full kitchen overhaul can get expensive fast, and you don’t always recoup the cost. But small updates can go a long way:

  • Replacing cabinet fronts or hardware

  • Updating lighting and fixtures

  • Installing a new backsplash

  • Repainting cabinets or walls

Estimated ROI: 60–80%
Buyers love an updated kitchen, but they also value timeless finishes over trendy ones.

2. Bathroom Upgrades

Like kitchens, bathrooms are high-impact spaces. You don’t need to tear everything out to see a return:

  • Replace old vanities and fixtures

  • Re-grout tile or add new flooring

  • Swap out dated mirrors or lighting

Estimated ROI: 60–70%
Clean, updated bathrooms go a long way in helping a home feel move-in ready.

3. Curb Appeal Improvements

First impressions matter. Even small updates to your home’s exterior can increase perceived value:

  • Fresh paint or updated siding

  • New front door or garage door

  • Landscaping and clean walkways

Estimated ROI: 80–100%
In many cases, basic exterior improvements offer the highest ROI of all home projects.

4. Adding Usable Square Footage

Whether it’s finishing a basement, converting an attic, or adding a bedroom, increasing your home’s livable space usually boosts value.

Estimated ROI: Varies (50–75% or more)
This can depend heavily on location, layout, and quality of the finish.

5. Energy-Efficient Upgrades

These updates are attractive to buyers and can help you save money in the meantime:

  • New windows

  • Insulation upgrades

  • Energy-efficient HVAC systems

Estimated ROI: 50–80%
While not always flashy, they can help your home stand out, especially to cost-conscious buyers.


Renovations That Might Not Pay Off

  • Luxury features (like high-end appliances or steam showers) often cost more than they return

  • Swimming pools are location-dependent and expensive to maintain

  • Over-personalized designs can turn buyers off rather than draw them in


The Bottom Line:
The best renovations are the ones that strike a balance between modern updates, broad appeal, and smart spending. You don’t need to go over the top—a clean, well-maintained home with a few thoughtful updates can be just as attractive to buyers as a fully renovated one.

Thinking about prepping your home for the market? We’d be happy to walk through your space and share ideas on where to focus for the best return.

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