Home improvements that add value
Home improvements that add value
$3,000 – $16,000 average cost for new landscaping
$4,000 – $18,000 average cost for minor kitchen renovation
$5,500 – $30,000 average cost for bathroom renovation
Home upgrades that add value
Home improvements that add the most value are those that improve a home's comfort, visual appeal, or efficiency at a price as close to the resulting value increase as possible. Common home upgrades that add value and offer the best return on investment (ROI) are exterior improvements, updated kitchens and bathrooms, and HVAC conversions.
| Project type | Average cost | Average ROI |
|---|---|---|
| Exterior upgrades | ||
| Upgraded landscaping | $3,000 – $16,000 | 95% – 100%+ |
| New garage door | $800 – $3,700 | 95% – 100%+ |
| New front door | $500 – $1,900+ | 50% – 100%+ |
| New exterior siding | $10,000 – $32,500 | 85% – 100%+ |
| New roof | $5,700 – $40,000 | 45% – 60%+ |
| Interior upgrades | ||
| Minor kitchen renovation | $4,000 – $18,000 | 75% – 85% |
| Bathroom renovation | $5,500 – $30,000 | 35% – 65%+ |
| Basement conversion | $3,000 – $12,000 | 70% – 75% |
| Energy efficiency upgrades | ||
| New windows | $200 – $1,500 per window (vinyl) $800 – $3,800 per window (wood) |
60% – 70% |
| HVAC conversion | $3,200 – $13,000+ | 100%+ |
| Minor improvements | ||
| Interior paint (professional) | $3,500 – $10,000 | 100%+ |
| Yard cleanup | $125 – $400 | Up to 100%+ |
Exterior home improvements that add value
Research confirms curb appeal truly matters. Making improvements to your home's exterior surfaces and surroundings often brings the highest returns. Some updates may raise your property value even more than the project cost.
Improve the landscaping
An attractive, well-maintained yard can increase a home's perceived value by 5% to 15%+, depending on the location and design. Outdoor features like landscaping upgrades, outdoor kitchens, and visually inviting spaces for entertaining or relaxation can yield ROIs up to 100%+ in some areas.
Focus on upgrades that work in your local market. For example, an outdoor kitchen will likely add more value in warmer climates where it can be used year-round.
| Project type | Average cost |
|---|---|
| Yard cleanup cost | $125 – $400 |
| Landscape upgrade cost | $3,000 – $16,000 |
| Outdoor kitchen cost | $7,000 – $35,000 |
| Patio cost (10'x20') | $1,000 – $7,000 |
| Deck cost (20'x20') | $10,000 – $20,000 (wood) $16,000 – $32,000 (composite) |
Hire a landscape designer near you to elevate your outdoor environment and maximize your investment.
Replace the garage door
With an average ROI exceeding 100% in recent years, replacing an outdated garage door is a smart investment for boosting curb appeal and recouping a significant portion of the cost. Installing a new 2-car garage door costs $800 to $1,800 on average, including the door and installation labor.
Replacing a garage door is typically not a project you want to DIY. Hire an experienced garage door installer near you to ensure a safe and correct installation.
Upgrade the entry
Upgrading your entrance with a new front door can give your home an instant facelift and may offer an ROI of 100% or more, depending on the material quality and the scope of the project. The cost to replace a front door is $500 to $1,900+ for the door and installation.
A good quality, steel front door costs $100 to $1,000 before installation and is a smart choice for most homes.
Upgrading your entrance to include high-end double doors and sidelights also increases property value, but the ROI is typically much lower than just improving your existing entrance with a better-quality door of the same size.
Look for an experienced, high-rated door installer near you to discuss the best choice for your home's new entrance.
Replace old siding
Fresh new siding can dramatically improve your home's curb appeal and increase its value, especially if the home's existing siding is visibly worn or damaged. New siding costs $10,000 to $32,500 installed for an average home, depending on the material and quality.
Manufactured stone veneer, vinyl, and fiber cement siding tend to offer the best ROIs. Reach out to a siding contractor near you to determine the best type of siding for your home.
Replace the roof
Replacing an old roof with new asphalt shingles or a metal roof can enhance your home's appearance, protect it from the elements, and increase its value. Asphalt shingles tend to offer the best ROI, but metal roofs typically add more value and last longer.
| Roof material | Average total cost |
|---|---|
| Asphalt shingle roof cost | $5,700 – $12,000 |
| Metal roof cost | $7,500 – $40,000 |
Contact a high-rated roof replacement contractor near you to discuss your options and determine the best roof choice for your needs and budget.
Interior home upgrades that add value
While interior remodeling projects often have high upfront costs, the right choices can have a big impact on a home's resale value. Updated kitchens and bathrooms are a desirable feature in most areas. Consult a local realtor to see which changes may add the most value to your home in today's market.
Upgrade the kitchen
Improvements in the kitchen—the space many people view as the home's center and a place for family to gather—tend to provide immense value. Minor remodels focused on replacing the countertops and flooring, refinishing the existing cabinets, and upgrading some appliances can yield ROIs over 85%.
A minor kitchen remodel costs $4,000 to $18,000 on average. Use good quality, budget-friendly materials for a refreshed space that adds value and provides the best return.
Look for a highly-rated kitchen remodeling company near you to help breathe new life into your kitchen.
Update the bathroom
Bathrooms are major selling points for most buyers, so improving these private spaces can greatly increase your home's value. While major, luxury bathroom renovations result in higher property values, a moderate remodel typically provides a better return on investment, with an average ROI of over 65% in recent years.
| Bathroom size | Average cost |
|---|---|
| Small bathroom renovation cost | $2,500 – $10,000 |
| Average-sized bathroom renovation cost | $5,500 – $15,000 |
| Primary bathroom renovation cost | $10,000 – $30,000 |
Search for a qualified bathroom remodeler near you to discuss which improvements will have the most positive impact based on your existing space and budget.
Paint the interior
Professional interior painting costs $3,500 to $10,000 for an average home. A fresh coat of paint throughout your home, done well and in a neutral color palette, increases home value and often generates a 105%+ return on investment.
A newly painted interior by an interior paint professional is ideal for homeowners who want or need to sell quickly and don't have time for more complex home upgrades.
Increase the living space
A home addition certainly adds value, but it's also a very expensive improvement, especially given the ongoing material and construction cost increases post-pandemic. Your potential ROI depends on the existing space, the type of addition, and the local market. Small additions like an extra bathroom typically add the most value.
Consider these other possibilities to improve or increase your existing living space for less than the cost of a full home addition and a better ROI:
Finish an underutilized area of the home:
Finishing a basement costs $30 to $50 per square foot.
Finishing an attic costs $50 to $150 per square foot.
Create a bedroom or small office:
Building a new closet costs $25 to $35 per square foot and can transform a bonus room into an additional bedroom, expanding your market of interested home buyers.
Converting an unused walk-in closet or pantry to a small office lets potential buyers see new possibilities.
Energy-efficient upgrades that add value
Improving a home's energy efficiency with upgrades like solar panels, better insulation, and more efficient windows and appliances can raise home value by lowering utility bills and appealing to eco-conscious buyers. Zillow's Consumer Housing Trends Report (CHTR) found that 64% of home buyers in 2023 consider energy-efficient features as "extremely important."
The potential ROI for energy-efficient upgrades depends on many factors, including the project scope, location and climate, local electricity rates, available state and local incentives, and the home's current energy use. If you're not sure where to start, a home energy audit can help identify the most impactful upgrades for your home.
Convert to electric heating & cooling
Lowering your energy costs by converting from an oil or gas furnace to an efficient ductless mini-split heat pump costs $3,200 to $13,000+ total or $1,500 to $3,500 per zone. Home improvements like this one have yielded ROIs exceeding 100% in recent years.
Speak to an experienced HVAC professional near you to determine the best option for improving your home's existing heating and cooling systems.
Install new windows
Installing new windows can improve a home's energy efficiency, make the interior more comfortable to live in, and boost curb appeal as well. While vinyl and wood both offer an average ROI over 60%, you'll typically see a slightly higher return with vinyl due to the lower material cost.
| Window material | Average cost per window | Total installed cost* |
|---|---|---|
| Vinyl window replacement cost | $200 – $1,500 | $2,000 – $22,500 |
| Wood window replacement cost | $800 – $3,800 | $8,000 – $57,000 |
*Average installed cost for 10 to 15 windows.
Look for a qualified window installation company near you to make sure your new energy-efficient windows are installed and sealed correctly.
Install solar panels
Solar panels boost home value and lower your utility bills. As electricity rates continue to rise, it's no surprise that solar homes sell up to 15% faster in some areas. However, the average payback period for solar systems is 6 to 10 years, so you'll reap the most benefits if you plan to stay in your home for a while.
See our additional resource for a detailed breakdown of incentives and tax credits for energy-efficient home improvements.
Minor home improvements that increase value
If you're working with a tight budget, simply keeping up with routine home maintenance and making small cosmetic updates can positively impact home value over time. Refer to our guide on affordable home improvements for cost-effective options. These "low-hanging fruit" tend to have a big impact on a home's perceived value:
A well-maintained yard
New paint on the interior and exterior
A clean and organized home
Window treatments that allow in more natural light
Updated light fixtures
Painted or refinished cabinets
New cabinet and drawer hardware
Home improvements that do not add value
While certain home upgrades can boost your home's resale value, not all renovations provide a good return on investment. Before taking on an expensive project, understand which improvements are unlikely to pay off:
Luxury upgrades beyond your neighborhood's norms: Adding extravagant features that are out of step with other homes in the area may price your home out of the area's affordable range.
Overly personalized renovations: Highly customized renovations reflecting your personal tastes, like oversized closets for collections or lavish media rooms, likely won't appeal to most buyers and may turn them off.
Removing a bedroom or bathroom: Renovations that cause your home to have fewer bedrooms or bathrooms than other homes in the neighborhood reduce its functionality and lower the sale price.
Low-quality home improvements: Shoddy DIY projects can create bigger problems like leaks, code violations, or sloppy finishes that visibly detract from your home's value to potential buyers.
Swimming pools: Inground pools are expensive to install and maintain, and many homebuyers see them as costly hassles rather than valuable amenities. Pools may increase home value in some areas, but they rarely increase resale value enough to offset their price tag.
Market trends vary by location and fluctuate often. Talk to a local real estate agent to understand which renovations make the most sense for boosting value based on buyers' priorities in your area.
Home improvement FAQs
Are home renovations tax deductible?
While the cost of most home improvements isn't directly tax deductible, there are some exceptions. Certain energy-efficient upgrades, like installing solar panels, may qualify for federal tax credits. It's always a good idea to check for federal, state, and local incentives before you start your home improvement project to see if you can save money.
What adds more value – remodeling or adding square footage?
While adding square footage can increase your home's value, it's typically more expensive up front than a remodel. This means you might not recoup as high a percentage of the cost when you sell. You may see more value in the long run by finding ways to maximize your existing space.
How do I choose home improvements with the best resale value?
Home improvements that have the best impact on resale value are those that focus on what buyers are looking for. While preferences vary by location, some general trends that tend to hold true across the board are updated kitchens and bathrooms, a welcoming entryway, well-maintained landscaping, and energy-efficient features.
Before beginning any home improvement project, understand your home's current value and the typical price range for similar-sized houses in your neighborhood. This will help you create a realistic budget for improvements that will add value without overspending.
Getting estimates from home improvement contractors
Before you hire a contractor for a home upgrade project, research current trends in your area's real estate market to help you choose upgrades that boost your property value. Then, follow these tips to find a reputable home improvement contractor near you:
Get at least 3 estimates to compare details and pricing. Make sure each quote covers the same project scope.
Check out reviews on HomeGuide and Google to get a sense of their past work.
Choose a licensed, bonded, and experienced professional with a proven track record in your desired improvement type.
Confirm the contractor's license, insurance, and warranty are all valid and up to date.
Protect yourself by getting a written contract and warranty outlining the project details before any work starts.
Avoid large upfront payments. Instead, use a payment schedule tied to project milestones.
Questions to ask a contractor:
Asking the right questions will help you select the best contractor for your next home improvement project:
Are you licensed, insured, and bonded?
How long have you been in business in this area?
Do you have specific experience with this type of project?
Can I contact some of your past clients for references?
Will you be responsible for ordering materials?
When can you start the project? How long will the project take?
How do you handle unforeseen damage if it occurs during the job?
Are there any common issues or additional costs that you've seen come up during a project like this?
Do you offer a warranty on your work, and what does it cover?
Will you provide a written estimate and contract outlining the project details?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.