Whether you plan to sell your home soon or simply want to enhance your living space, investing in strategic home improvement projects can significantly increase your property’s value. Renovations and upgrades make your home more appealing to potential buyers and create a more enjoyable and functional living environment for you and your family.

In this article, we’ll explore some of the top home improvement projects that can yield the best returns on investment:

Kitchen Remodel

The kitchen is often considered the heart of a home, and a well-executed kitchen remodel can add substantial value to your property. According to the latest Cost vs. Value Report by Remodeling, a minor kitchen renovation provides a favorable return. The return on investment (ROI) stands at 85.7%, a significant increase from last year’s 71.2%. This is derived from an average project cost of $26,790, resulting in a boosted home resale value of $22,963.

This renovation primarily focuses on cosmetic adjustments for a “functional yet outdated” kitchen. The changes encompass replacing the cabinet fronts, countertops, flooring, and appliances with midrange-priced options and repainting the walls and ceiling.

Bathroom Remodeling (Mid-Range)

Renovating a smaller existing bathroom is another valuable indoor improvement. You can expect to recoup around 66.7% of the expenses according to the Cost vs. Value Report 2023, allowing you to upgrade sink and shower fixtures, apply new wallpaper, or renovate the flooring.

The essential aspect is understanding that a complete overhaul isn’t necessary and making thoughtful choices on where to invest in your bathroom upgrades. Consider working with an experienced plumber, who can help you make sure sinks, toilets and fixtures for are installed correctly.

Garage Door Replacement

Typical expense: $4,302 Average resale value: $4,418 Recovery of expenses: 102.7% A visually appealing garage door ranks high for generating a return on investment and is considered one of the top home improvement projects. This evaluation is calculated considering the cost of removing and discarding 16-by-seven-foot garage doors and substituting them with four-section doors featuring robust galvanized steel tracks. It assumes the reuse of the automated garage door opener.

This enhancement to curb appeal might yield returns surpassing your initial expenditure when you sell your home — a rarity among home renovation endeavors.

HVAC Transformation

Shifting from a fossil-fuel-burning furnace to an electric heat pump and installing fresh conduits and wall units constitutes this renovation. Although it might not exude the same glamour as other renovations, it is a trendy choice reflecting the surging interest in renewable, eco-friendly, and energy-efficient HVAC systems. Heat pumps, capable of heating and cooling, are a substitute for energy-hungry air conditioners.

This conversion, while relatively expensive — averaging $17,747 for a 2,000-square-foot home — boasts an impressive ROI of over 100 percent.

Add a Stone Veneer

Adding the timeless allure of stone is indisputable and is considered one of the top home improvement projects. Replacing vinyl siding with a manufactured stone veneer, even in a localized manner such as the entryway, can substantially augment your property’s exterior appeal. This projection encompasses around 36 linear feet of sills, 40 linear feet of corners, an address block, as well as essential materials like water-resistant barriers and durable lath and fasteners.

This endeavor elevates your establishment’s aesthetic and generates a return that surpasses your investment.

Window Replacement

You can regain 68.5% of the expenses for window replacement by opting for low-E, simulated, divided-light vinyl windows with a custom-color exterior coating. (Low-E signifies low emissivity, a feature that conserves energy.) Ensuring that the exterior trim corresponds with the existing elements and maintaining the untouched interior trim are essential to staying within budget.

The typical investment for this kind of upgrade, involving ten windows, comes to approximately $20,091.

Top Home Improvement Projects For ROI

Investing in home improvement projects effectively increases your property’s value while creating a more enjoyable living space. Whether you plan to sell soon or simply want to enhance your home long-term, consider these top projects to maximize your return on investment and make your home stand out in the real estate market. Remember to research local trends and preferences to tailor your improvements to the needs of your specific market.