Welcome to National Home Improvement Month! If you're thinking about sprucing up your place—whether to sell soon or just to make it nicer for yourself—picking the right improvements can really boost your home's value and appeal. When it comes to home improvements for resale, the best investments are those that maximize your return on investment (ROI) and make your home more appealing to potential buyers. Key factors that buyers prioritize include cleanliness, functionality, and energy efficiency.

What's ROI?

ROI or "Return on Investment", in simple terms mean how much bang for your buck you get from each improvement when you sell your home. A good ROI means the money you spend on upgrades will increase your home’s selling price by a good chunk of that amount.

Trending Home Improvements Upgrades

  • Eco-Friendly Choices: Think green!  Homeowners are increasingly choosing sustainable materials and energy-efficient upgrades. Adding solar panels, using sustainable building materials, and installing energy-efficient appliances are top picks. They're good for the planet and a hit with eco-friendly buyers who care about the environment.
  • Smart Home Technology: Who doesn’t love a little technology? Features like smart thermostats and security systems make life easier and could be a selling point. Installing energy-efficient lighting is a trend that not only improves functionality but also attracts a tech-savvy buyer.
  • Outdoor Living Spaces:  As we all spend more time at home, a beautiful outdoor area to relax or entertain can be a huge plus. Decks, patios, or outdoor kitchens can be a major draw and offer a significant return on investment. Simple exterior enhancements like a new garage door or a fresh coat of paint can also yield significant returns. For instance, a new garage door can provide a return of about 138%, and exterior paint can add significant resale value compared to the cost.3

Best Improvements for Good ROI

  • Kitchen Remodel: A fresh, modern kitchen appeals to everyone. You don’t need to go all out—just some minor updates like new appliances, switching up countertops, upgrading fixtures and adding fresh paint go a long way. These minor kitchen remodels are very popular and can recoup about 85% of their costs at resale.1
  • Bathroom Addition: If you’ve got one bathroom, adding another can make your home much more functional and appealing and can recoup about 30% of its cost.  A moderate bathroom remodel, including updating fixtures and finishes, typically recoups about 46-66% of its cost​.2
  • Energy Savers: Good insulation, new windows, and efficient heating and cooling systems cut down on energy bills and are a big plus for buyers. Upgrading to these more energy-efficient features typically sees a 100% ROI, meaning you can fully recover the costs when you sell your home. These improvements not only enhance home value but also reduce ongoing utility expenses, making them very attractive to buyers​.3

Smart Tips to Maximize Your Investment

  • Keep Your Budget in Check: Know what you can spend and stick to it. Always plan for an extra 10-20% for those unexpected costs that pop up.
  • Go for a Timeless Style: Choose classic designs and neutral colors when you’re updating big parts of your home. It makes your home appealing to more buyers.
  • Hire Experts: Sometimes, it’s worth it to get professional advice. Designers and contractors can help you avoid costly mistakes and make sure the job’s done right with quality workmanship.
  • Do a Simple Deep Clean: Among various home improvement efforts, a thorough deep clean stands out for its extremely high ROI, reportedly as much as 3,650%. A deep clean not only refreshes the appearance of a home, making it more inviting, but also implies to potential buyers that the property has been well-maintained.3

Investing in your home is not just about the future sale price—it's about enjoying your space while you’re there. As you consider home improvements, choose upgrades wisely, focusing on those that offer solid returns and are in line with current trends. Remember, the most valuable updates make your home nicer to live in and more attractive to buyers.

 

1 Top 33 Home Remodeling Statistics and Trends of 2023

2 Cost vs Value 2023: Best ROI on Home Improvements in One Chart 

3 Highest ROI Home Improvements

Please Note: The actual returns on home improvement investments can vary widely depending on several factors, including geographic location, current market trends, and local pricing. Additionally, changes in the real estate market at the time you decide to sell can influence the financial outcome of these projects. Therefore, the ROI figures provided should serve as a broad guide to help homeowners make informed decisions about which improvements might add the most value to their homes in 2024.