How to increase home value
How to increase home value
$500 – $4,000 average minor upgrade cost
$5,000 – $40,000 major upgrade or remodel cost
What increases home value?
Making strategic upgrades and improvements can pay off bigtime in increasing the value of your home. Some of the best ways to increase home value are exterior changes that enhance curb appeal, kitchen and bathroom updates, and upgrades that improve the home's energy efficiency.
Smart, targeted home improvements can make your property more comfortable, eco-friendly, and desirable to future buyers, maximizing your return on investment (ROI).
| Project type | Average cost | Average ROI |
|---|---|---|
| Exterior | ||
| Landscaping upgrade | $3,000 – $16,000 | Up to 100% |
| Garage door replacement | $800 – $3,700 | 95% – 100%+ |
| New front door | $500 – $1,900+ | 50% – 100%+ |
| Siding replacement | $10,000 – $32,500 | 85% – 100%+ |
| New roof | $5,700 – $40,000 | 45% – 60%+ |
| Deck addition (12'x12') | $3,600 – $11,500 | 40% – 50% |
| Interior | ||
| Minor kitchen remodel | $4,000 – $18,000 | 75% – 85% |
| Bathroom updates | $5,500 – $30,000 | 35% – 65%+ |
| Window replacement | $200 – $1,500 per window (vinyl) $800 – $3,800 per window (wood) |
60% – 70% |
| Energy-efficiency upgrades | $3,200 – $13,000+ | 100%+ |
Even minor improvements can increase a home's value, and it's often those minor changes that have the highest ROIs.
The ROI for home remodeling projects changes from year to year. A home's location also affects which projects have the most impact.
Top exterior upgrades to increase property value
Enhancing your home's curb appeal is one of the most cost-effective ways to boost its value and potential sale price. According to Remodeling Magazine's 2023 Cost vs. Value Report, exterior improvements tend to provide a higher return on investment (ROI) than most interior upgrades.
Maintain the yard
Research shows well-maintained landscaping can increase a home's perceived value by 5% to 15% or more, depending on the location and the design quality. A recent study from the National Association of Realtors (NAR) estimates the following outdoor features have a 95% to 100%+ potential ROI.
| Project type | Average cost |
|---|---|
| Lawn care service and maintenance cost | $200 – $400 per month |
| Landscape upgrade cost | $3,000 – $16,000 |
| Outdoor kitchen cost | $7,000 – $35,000 |
| New 20'x20' patio cost | $2,000 – $14,000 |
Consider your location, climate, and local market when deciding what outdoor features to include. For example, a home in a warmer climate will have more use for an outdoor kitchen than one in a region with long or harsh winters.
Hire a landscape designer near you to help create your perfect outdoor oasis and maximize your investment.
Replace the garage door
An updated garage door is one of the first things potential buyers notice. With an average ROI over 100% in 2023, it's a solid investment for those looking to increase home value and recoup as much of the cost as possible. A new 2-car garage door costs $800 to $1,800 on average for the door and installation.
Upgrading your garage door is not a DIY-friendly project. Hire a professional garage door installer near you to ensure it's installed safely and correctly.
Upgrade the entrance.
The cost to replace a front door is $500 to $1,900+ for the door and installation. Replacing an old or outdated entry door can give your home an instant facelift, increase your home's value, and offer an ROI of 100% or more.
Upgrading to a grand entrance with premium double doors and sidelights also increases home value, but the potential ROI will be closer to about 50% due to the high project cost.
Whether you're replacing the front door or upgrading to a completely different entrance design, hire a reputable professional door installer near you with experience in the type of update you're making.
Replace the siding
New siding dramatically improves curb appeal and can increase home value significantly, especially if your home's existing siding is nearing the end of its lifespan.
Siding costs $10,000 to $32,500 installed on average for a 2,500 square foot home. In the current market, manufactured stone veneer, vinyl, and fiber cement siding tend to offer the biggest ROI.
Reach out to a siding contractor near you to determine the best type of siding for your home and area.
Add a deck
Installing a new deck can increase your home value and enhance your outdoor living space. A wood deck is cheaper to install and offers a higher ROI—45% to 55% for wood vs. 35% to 40% for composite—but a composite deck is more durable, lower maintenance, and offers a higher property value increase.
A typical 12'x12' wood deck costs $3,600 to $7,200 installed on average.
Composite decking costs $5,750 to $11,500 for the same 12'x12' installation.
A new deck increases home value but does not increase your home's square footage.
Replace an old roof
Does a new roof increase home value? Absolutely. While any new roof will offer better protection from the elements, enhance a home's curb appeal, and increase its value, asphalt shingles, and metal roofs have the best return on investment in the current market.
Replacing an asphalt shingle roof costs $5,700 to $12,000 installed and offers the best ROI—over 60% on average in 2023.
Upgrading to a metal roof costs $7,500 to $40,000 with installation. The average ROI for a new metal roof in 2023 was just under 49%, but a metal roof lasts decades longer than asphalt shingles and typically adds more to your property value.
Look for a high-rated roof replacement contractor near you to discuss your options.
Top interior upgrades to increase home value
While interior remodels often cost more upfront, they can also have a significant impact on a home's resale value. A real estate agent near you can advise on the current trends and what changes may have the best results in today's market.
Update the kitchen
The kitchen is often considered the heart of the home, so it's no surprise that a newly updated kitchen space can increase your home's resale value significantly. A minor kitchen remodel costs $4,000 to $18,000 and offers the best ROI—over 85% on average—especially when using good quality, budget-friendly materials.
Minor remodels typically include installing new countertops and flooring, refacing the cabinets and drawer fronts, installing new hardware, upgrading some appliances and fixtures, and adding a fresh coat of paint.
Major kitchen remodels cost up to $70,000+ and increase home value more than a minor renovation. However, the high project costs eat into your potential return.
The potential ROI of a kitchen remodel or renovation varies by location. Consult a local realtor to confirm the best upgrades in your area, and then hire a reputable kitchen remodeling company near you to elevate your space.
Update the bathroom
Bathrooms are major selling points, so updating these spaces can greatly increase your home's value. Like the kitchen, major and high-end bath remodels result in higher property values, but a midrange remodel increases home value while offering a higher return—an average of over 65% in 2023 vs. about 37% for high-end renovations.
An average bathroom remodel costs $5,500 to $15,000 for a standard bathroom or $10,000 to $30,000 for a primary bathroom.
Remodeling a small bathroom costs $2,500 to $10,000 on average.
Talk to an experienced bathroom remodeler near you about which updates will have the most impact on your space.
Replace the windows
Installing new windows boosts energy efficiency, comfort, and visual appeal. Vinyl window replacements cost less than wood windows and have a slightly higher ROI. Both window types, however, may increase home value by $13,000+ and offer an over 60% return on investment.
Vinyl window replacement costs $2,000 to $22,500, or $200 to $1,500 per window, including labor.
Wood window replacement costs $8,000 to $57,000, or $800 to $3,800 per window with installation.
Look for a trusted window installation company near you.
Improve efficiency
In addition to efficient windows, eco-friendly upgrades like solar panels, insulation, smart thermostats, and energy-efficient appliances can increase home value by lowering utility costs. Zillow's 2023 Consumer Housing Trends report shows 64% of home buyers view energy-efficient features as not just desirable but "extremely important."
Converting from an oil-burning furnace to energy-efficient electric heating and cooling with a ductless mini-split heat pump costs $3,200 to $13,000+ total or $1,500 to $3,500 per zone. In 2023, this type of conversion, or electrification, yielded an ROI of more than 100 percent.
Solar panels increase home value by 1% to 2% in most cases. More significantly, homes with solar panels often sell up to 15% faster than homes without them in some areas.
Check out our in-depth guide on the available tax credits for energy-efficient home improvements to maximize your potential savings.
Best ways to increase home value on a budget
If you're tight on funds, simply maintaining your home will positively impact its value over the long term. Additionally, even small cosmetic updates can improve buyer perceptions and sale prices. Check out our detailed guide to affordable home improvements for a breakdown of cost-effective, value-adding home updates.
FAQs about increasing home value
What renovations add the most value to a home?
In general, moderate kitchen and bathroom remodels, plus curb appeal projects like new siding, doors, and landscaping, add the most value with the best return on investment.
What adds more value – renovating or adding square footage?
Both can significantly increase value, but home additions usually cost more than renovations up front. Midrange projects like a new bathroom addition get higher ROI percentages than larger additions, but home additions overall tend to have lower returns than renovations.
Finishing an existing space, like a basement or garage, also adds livable square footage and typically has a better ROI than a full addition.
Simply installing a closet in a bonus room can turn a 2-bedroom house into a 3-bedroom house, which is more desirable and fetches a higher price in most markets.
How do I choose renovations with the best resale value?
Focus on renovations that address common buyer priorities, like updated kitchens and baths, curb appeal, and energy-efficient systems. Also, consider your neighborhood's typical price point when budgeting for improvements, as every market is different.
Getting estimates from local home improvement contractors
Before getting quotes for your home improvement project, research and understand your local real estate market to ensure the updates you make will have a positive impact on your property value. Then, follow these guidelines when searching for a home improvement contractor near you:
Get 3 to 5 project estimates with similar details to compare.
Read reviews for local contractors on HomeGuide and Google.
Choose a professional who's licensed, bonded, and experienced in the type of home improvement you're envisioning.
Confirm their credentials, insurance, and warranty are valid.
Get a detailed contract and warranty in writing before any work begins.
Avoid making large payments upfront. Instead, follow a payment schedule as the installer completes the work.
Questions to ask a home improvement contractor:
Ask the following questions to help you select the best contractor for your needs and budget:
Are you licensed, insured, and bonded?
How long have you been doing home improvement projects in this area?
What experience do you have with this type of home improvement project?
Do you have a list of references I can contact?
Will you need to order any materials? How quickly can you start the project?
How do you handle unexpected damage that happens during the job?
Approximately how long will this project take? Will there be extra charges if it takes longer?
Do you offer a warranty for your work, and what does it include?
Will you provide a written estimate and contract?
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.