The Best Home Improvement Projects to Increase Value

A home is a big investment, so if it needs a little TLC, make improvements wisely. Whether planning to sell next year or just enjoy your property over time, the cost of an improvement project is an additional investment in your home. It is possible to balance home remodels and repair projects that boost value with the demands of your budget and quality of life for the household.

Raising the ROI, or return-on-investment, means improving the value of your home to match the costs you invest in it along the way. A higher ROI improves your financial picture when selling the home or determining the net-worth of personal assets, such as taking out a loan, or adjusting mortgage or financing rates. A higher ROI is reflective of the look, feel, and security of your home at the time of evaluation.

7 Best Home Improvements for Resale

If you’re improving your home with the intent of selling, there are a few sought-after additions and attention-catching updates that can help you get the best value. Keep in mind that the best ROI on home improvement projects come from those with the lowest cost for completion, which then adds to the potential resale value. These aren't inexpensive or small projects, they are the projects which add the most to the home value.

1. Kitchen Update

A minor remodel to the kitchen can change the look of the room and emphasize the best features of your home. The goal of a minor remodel is to work with the existing structure of the kitchen, improving access with small upgrades. Look for smaller projects to combine a low out-of-pocket cost with an instant improvement on your family’s access and enjoyment of their kitchen. 

Minor kitchen remodels can include: 

• Swap in new hardware on the cupboards and drawers. 
• Refresh the paint and install a tile backsplash for an additional pop of color.
• Update the light fixtures to create a consistent, showroom-ready space.
• Add to the room design with a new faucet or splurge on a sink.

Smart-home, energy saving technology and appliances that can bump a home resale cost by 3 to 5 percent.

2. New Appliances

The aesthetic appeal and reliability of new appliances adds to the value of the home. Coordinate the finish of each appliance to match the other appliances and decor to form a cohesive look in the kitchen, whether stainless steel, black, white, or customized. New technology translates to energy savings that pay off over time, and they offer years of use before they'll need replaced again.

This provides a tangible quality-of-life boost for the family that uses them everyday, and improves the overall value of your home. Look for the larger items to bring in as the budget allows, such as the following appliances:

• A new refrigerator maximizes your food storage space with a variety of customizable features. 
• A new oven or range-top brings a fresh look and can make the short-order cook as happy as the holiday chef. 
• A new dishwasher may be quieter than the one under the counter now, making your life that much more zen. Look for shortened cycle times, optimized water use, and improved cleaning power.

There are portable options for some appliances, but those will not add value to the home. If your home doesn't have one, adding a built-in dishwasher is a solid ROI booster. Look into the necessary plumbing and electrical modifications to install a dishwasher, as well as modifications to the cabinetry. This will significantly add to the improvement cost, but it will also raise the ROI.

3. Bathroom Update

A minor bathroom update is an aesthetic improvement without the costly structural remodel. Update the shower trim and faucet, add fresh paint and a backsplash behind the vanity. A new vanity and updated lighting fixtures refresh the style of the room. It improves the experience of the room, preserves the functional value, and appeals to the aesthetic appreciation. They provide the same boost to the home value at a lower out-of-pocket cost.

4. Interior Paint

For the cost of a few cans of paint, you can create an all-new space from your familiar rooms. Add an accent wall to match the decor, or paint a bedroom in a favorite color. For a brighter, open space, use a neutral paint color, particularly if you might sell the house before you get the urge to paint it again. Check out this quick reference guide to painting your spaces and read about color scheme basics.

5. Garage Door Replacement

The garage door is a relatively low-cost replacement that you will quickly benefit from, through the renewed appearance of your home and the ease of every-day use. It can be a reliable feature with updated technology that brings improved performance and security. As a boost to the home’s curb appeal, a stylized new garage door can take years off the look of the home’s exterior paint job, drawing attention as a focal point.

6. Exterior Paint and Siding

Keeping the exterior of your home looking sharp isn't just for show. The condition of the outside paint or siding signals that a home is well cared for. Sun-bleached paint, sagging siding, and muddy walls can hide cracks and wear. 

It's a good idea to wash off the outside walls every now and again as part of regular maintenance. When it is time to make repairs or refresh the color, browse the neighborhood for comparative ideas. Check with your neighborhood’s HOA regulations to be certain there are no restrictions.

7. Energy Efficient Updates

Today's world runs on technology. From computers, to refrigerators, to smart home assistants, the Internet of Things and the dozens of personal device options that connect them all require energy. The monthly bills are a lot smaller when the energy is used specifically where and how it is needed, waste-free.

A major drain on home energy use is the HVAC system. If the heater or air conditioner are working to adjust the temperature in unoccupied places, it wastes electricity. If your budget allows it, get a new HVAC system. It is a big investment that can add years of use and long-lasting home value.

For smaller scale energy improvements, there are less costly alternatives that still boost value.

• Check the seals around windows. Repair any seals that leak outside air to create hot or cold spots. 
• Install storm windows or doors. They can be expensive, so it can be helpful to change out one or two windows at a time and raise the home value without denting the pocket book all at once.
• Switch to a smart thermostat. A smart thermostat integrates with other devices to allow greater control of the HVAC system operation. They are a small, permanent change to the home that can optimize the energy use and add to the home's value while saving money on energy bills.

3 Refreshing Home Improvements

The bigger the home improvement project, the less likely it is to pay for itself on a quick sale. Some remodels pay off over time with the improved use and enjoyment to you and your family every day. 

This is because the home improvements with the lowest return on investment involve a lot of work (and a high price tag) to improve an existing space. For instance, while adding anywhere over 1000 square feet to a home can raise the home value as much as 30%, adding square footage is very costly. That initial investment to build the new rooms won't be recouped fully in a resale. 

Instead, these major home improvements may be worthwhile for the quality of life they bring to your household after completion. The longer term planning allows for different financing options and more freedom to customize the space to your preferences.

1. Major Kitchen Remodels

You may feel like the kitchen needs a full renovation, but taking it down to the bare walls and starting over can be an expensive construction project. It might look wonderful after all the work, but it won't dramatically move the needle on the actual home value. The space, function, and utility of the room will remain the same, and creating the aesthetic change will have minimal return on the cost to do so.

2. Major Bathroom Remodel

A major bathroom remodel involves expanding the square footage of the room, which is very costly. 

• All new tile throughout, new plumbing, and new electrical can be expensive in a new room. 
• A sauna enclosure, walk-in shower, and separate bath are classy upgrades if the room is large enough to accommodate them. 
• All of these new additions would require plumbing fixtures, such as shower and bath trim, and faucets and sinks.

3. Attic or Basement Room

Adding square footage by creating an accessible room out of an unfinished attic or basement space is an attractive idea at its surface. Depending on the layout of your home it can be a good flex room for extra space, like a kid's playroom, a game room, or a home office space. The list of improvements to make an attic or basement accessible, however, can add to the cost more than benefit the overall home value. 

For instance, finishing an attic or basement may require any or all the following:

• Adding stairs to create easy access, with room to move in furniture.
• Sealing off the ventilation points in the eaves for an attic space.
• Connecting electrical wiring.
• Installing light fixtures.
• Expanding the HVAC system to include the new room.

This list is in addition to the basic expectations of finishing the installation and installing flooring and drywall. If the bonus room it creates is less than a thousand square feet of additional space, the cost will be much more than the home value increase.

Lower-cost Alternative: Energy efficiency upgrades

Another low-cost, high-value home improvement is to renew the insulation in exposed areas, like the attic or basement. These areas of the home are subjected to drastic temperature changes that leak into the living areas through shared walls and floors. 

Rather than turn these spaces into high-use flex rooms, renew or add insulation and install drywall to help protect the rest of the house from their temperature variance. Sealing off these weak spots can help the HVAC system work more effectively. With solid walls and insulation to protect against humidity and temperature variation, the space can be used for storage by adding shelves.