What home improvement projects provide the highest ROI?

If you plan to put your home back on the market, you may be considering ways to maximize your returns. Well, your best bet is improving the house.

According to platforms that offer loans for home remodeling, a good home improvement project can increase returns by up to 70%. You can embark on several remodeling projects, whether DIY or manned by professionals, and significantly add to the value of your home before resale.

This article explores the concept of ROI in housing and discusses some of the best projects you can undertake to improve the value of your home. Read on for more!

What is ROI in Housing?

Return on investment (ROI), in basic terms, is a term that refers to how much you make after selling your house. It is attained by calculating how much you put into the house (investment, including the initial purchase price) and deducting it from the current investment price.

Essentially, the more work you put in to improve your house, the more value you add.

Factors to consider before home improvement

Before you remodel your house or get started on any improvements, there are several factors you need to consider, including:

Expected return on investment

Unless you are remodeling purely to boost your comfort or taste, you should understand the expected returns from the project. You can research your area’s prices and even use the help of a consultant to calculate how much more you should expect after your project. This will ensure that you don’t blindly spend time and money on improvements that may not make much difference.

Personal factors

There are also a number of factors that may affect you personally, for instance:

  • How will the modifications affect you if you plan to stay in your home for a while?
  • How will the changes fit into your lifestyle?
  • How long with the project take before you can list the house for sale?
  • What will be your living arrangements while the renovations are underway?
  • Is your remodel plan realistic to your ability and the house’s, and will it be practical years after the house is bought?


If you are skilled appropriately and have the time and resources, you can remodel yourself as a DIY project. However, if it is a relatively large project or you don’t have the time, you can also use some contractors.

Do your research correctly and work with the best contractors in each renovation area. This ensures that you have the best quality of work done. You can ask around or look up reviews online for the best selection in your area.

Home improvement projects for best ROI

Here are some eight home improvement projects to add value to your home for better returns:


Painting is perhaps the most uncomplicated renovation you can apply to your house for more value. No one likes old, stained and faded walls. You can invest in neutral tones that go well with the rest of the house interior, such as cream or light grey. Make sure the paint is of high quality, too – bad paint is easy to notice. A fresh coat of paint can completely transform the look and feel of any room and add some valuable curb appeal.

Garage door

The garage is particularly interesting to most buyers, especially those with cars. Many homeowners go through drastic renovations and ignore their garages. With years of use and bad weather, the garage door is bound to get rusty, weaker and noisier. If you plan to sell your home, consider investing in a new one or fixing, oiling and painting the current one. It contributes a lot to the look and, ultimately, the value of your home.


I will be honest upfront and state that a good bathroom renovation won’t be cheap. The Architectural Digest reports that bathroom improvements can take anywhere between 3% – 8% of the value of your house. When done correctly, however, it can nicely prop up the value of your home.

A bathroom renovation does not even need to be very extensive. If all the plumbing and electrical work is working properly, you can consider some DIY renovations such as fresh paint, replacing the mirror and adding a new grain of cabinets. You can also consider changing the tiles, shower-heads, adding or changing the lighting, and adding extra storage space.


The kitchen is also one of the most important considerations for people looking for houses, with up to fifty per cent turning down offers due to outdated appliances. Replacing yours with new and modern variations may be costly, but it sure will add value to your house. Some of the aspects you may want to consider remodeling in a kitchen includes:

  • Adding new countertops and kitchen cabinets
  • Painting the walls with a new, high quality and neutral paint
  • Adding windows
  • Replacing the lighting
  • Adding cooking space
  • Replacing the flooring or tiles


The state of your house’s front and back yards can easily top up the general value if the landscape is appealing and well-maintained. You can easily make some improvements by adding some greenery, trimming the grass and expanding or re-structuring the place to allow activities such as eating, playing, lounging and exercising. Flowers and grass not only make the site look much more natural and inviting but should also provide some privacy.


Any potential buyers will also be curious about energy efficiency. Here are some ways to improve this:

  • Add new insulation
  • Installing solar panels
  • Repairing or replacing the air conditioner
  • Replacing broken windows
  • Purchasing a high-quality thermostat

Plumbing and other fixtures

If plumbing needs maintenance, you should get it done as soon as possible. Be sure to check around any leaks for any water damage. If the system is relatively old, you can request a contractor to examine it and advise whether to make minor fixes or replace the entire thing.

Home fixtures, like other appliances, need to be current and fully functional. An old dusty chandelier, for instance, can easily take the appeal away from your living room. You should check any hardware in the house, such as switches and outlets and if possible, replace them with new, more functional and appealing options.


Windows make a significant and prominent part of your house’s picture. They not only affect the interior and exterior appeal but also affect insulation and energy consumption. If they are broken or outdated, consider replacing them with newer and more attractive ones, such as the double pane windows that seem in demand. They should also let in plenty of natural light and be firmly installed for any weather.

You should, however, make your calculations carefully – windows can be costly and may only return 70% or less on your investment.

Home improvements that do not add value to your home

Not all home improvements are guaranteed to add value. Some are, in fact, great ideas but will essentially go unnoticed in terms of valuing the house. Some of these include:

  • DIY projects: While you may be wildly talented, most of these projects will only be considered by clients drawn explicitly to them. Some may even ask that any DIY be removed. Save your energy and time on projects like hand painting or weaving.
  • Solar panels: Depending on your location, purchasing and installing solar panels can be pointless. If they are leased, they do not add any value. If purchased, they may spike up the value just a little as they are not expected to last very long.
  • Converting your garage: Many people waste thousands of dollars and even hours converting the garage to a spare room to drive up the expected returns. Sadly, it is not considered a valuable addition.
  • Wine cellar: A wine cellar is guaranteed to add a touch of class and perhaps some value to your house. However, they are costly to install and are unlikely to recoup their total value in the sale fully. The client can easily convert the cellar to a closet or extra storage space if they don’t really want it.
  • Basement or attic: As with the garage, it does not matter what you change the attic or basement to. It will likely be a fairly expensive project and can only return less than 70% of the remodeling investment.

In conclusion, you can improve your home and remodel it to increase its value. However, it would be best to keep in mind that most projects may be very costly, so you want to plan carefully and evaluate which ones will actually have good returns. It would also help if you remembered that not all projects would add value or make full returns. Visit CrazyMoneyFacts.com for more information on how to get the best return on investment for your home!