Best ROI Home Improvements for Your Home

When it comes to improving your home, it’s important to strike a balance between making your space more comfortable and adding value to the property. Whether you're planning to sell soon or looking to invest in long-term improvements, certain home renovations offer a higher return on investment (ROI) than others. Choosing upgrades that yield the best ROI ensures that the money you spend enhances both your lifestyle and your home’s market value.

In this post, we’ll explore the home improvements that offer the highest returns and explain why they are worth considering for your next project.

One of the most cost-effective ways to increase your home’s value is by enhancing its curb appeal. The exterior is the first thing buyers see, and it sets the tone for the rest of the property. You don’t need to break the bank to make a significant impact—sometimes small improvements can yield large returns.

Landscaping is an excellent place to start. Basic updates such as trimming bushes, planting flowers, and adding mulch can dramatically improve the appearance of your home. Studies suggest that professional landscaping can provide an ROI of up to 100%. Additionally, more substantial investments like adding stone pathways, water features, or an updated driveway can further elevate your home’s curb appeal and increase its market value.

Another worthwhile upgrade is replacing your front door. A new steel or fiberglass front door enhances both the look and security of your home. Not only does it improve the aesthetics, but it also makes a solid first impression on potential buyers.

The kitchen is often considered the most important room in the house, and upgrading it can significantly increase your home’s value. However, you don’t necessarily need to undergo a full kitchen remodel to see a good return. Minor kitchen renovations, which focus on updating key features without completely overhauling the space, tend to offer the highest ROI.

Some high-impact changes include replacing countertops, updating cabinets with fresh paint or new hardware, and installing energy-efficient appliances. New countertops, especially durable materials like granite or quartz, give the kitchen a modern look and appeal to buyers. Refacing or repainting cabinets instead of replacing them entirely is another cost-effective way to transform the space.

Bathrooms are another critical area for homebuyers, and upgrading yours can provide a solid return on investment. As with kitchens, small-scale bathroom remodels offer a better ROI than complete overhauls. Simple changes, such as updating the fixtures, retiling the shower, or replacing an old vanity, can make a bathroom feel fresh and modern.

Additionally, switching to water-efficient toilets, faucets, and showerheads can appeal to environmentally conscious buyers while saving money on utility bills. These small but impactful updates can result in an ROI of 60-70% on a mid-range bathroom remodel.

For homeowners with outdated bathrooms, larger improvements like adding a double vanity, upgrading to a frameless glass shower, or installing radiant floor heating can further enhance appeal. However, it’s important not to overdo it—luxury finishes are great, but in mid-range homes, focusing on functionality and clean design will yield better returns.

With energy costs rising, buyers are increasingly attracted to homes that offer lower utility bills. Upgrading your home’s energy efficiency not only helps the environment but also increases its market value.

One of the best investments in this category is installing energy-efficient windows. High-performance windows keep your home well-insulated, reducing heating and cooling costs. This can be a major selling point for buyers, particularly in climates with extreme temperatures.

Another effective upgrade is improving your home’s insulation, particularly in the attic. Poor insulation leads to energy loss, but properly insulating your home can improve comfort and significantly reduce energy costs. This relatively inexpensive upgrade can offer an ROI of up to 100%, making it one of the most cost-effective improvements you can make.

Finally, consider installing a smart thermostat, which allows homeowners to control heating and cooling more efficiently. These devices are affordable and easy to install, but they can have a meaningful impact on energy savings, offering an ROI of up to 100%.

Replacing outdated or worn-out flooring is another high-impact home improvement that can increase the value of your home. Hardwood floors are especially popular with buyers and can provide an ROI of 70-80%. If your home already has hardwood flooring, simply refinishing it instead of replacing it is a cost-effective way to enhance the look of your space.

For homeowners on a budget, luxury vinyl plank (LVP) flooring is a durable and stylish alternative to hardwood. It mimics the look of wood at a lower cost and is highly resistant to moisture, making it a great choice for kitchens, bathrooms, and basements. While the ROI on LVP flooring is slightly lower than hardwood, it still offers a strong return and can appeal to buyers looking for low-maintenance options.

If your home has carpeting, replacing it with higher-quality carpet or switching to hardwood in high-traffic areas like the living room or dining room can significantly boost your home’s appeal.

As technology becomes more integrated into everyday life, smart home features are becoming increasingly desirable for homebuyers. Installing a smart security system, smart lighting, or a smart home assistant can add modern appeal to your property and enhance its overall value.

While smart home features may not offer the highest ROI compared to structural upgrades, they are relatively inexpensive and can make your home stand out in a competitive market. Buyers, especially younger, tech-savvy ones, appreciate the convenience and security that these features provide, making them a worthwhile investment if you’re looking to appeal to a wide range of potential buyers.

When it comes to home improvements, focusing on projects that offer the best ROI ensures that your money is well-spent, whether you’re planning to sell in the near future or simply want to add value over time. By prioritizing curb appeal, upgrading kitchens and bathrooms, improving energy efficiency, and enhancing outdoor spaces, you can make strategic improvements that benefit both your lifestyle and your home’s market value.

Investing in these smart upgrades not only increases your home’s appeal to potential buyers but also provides a strong return on your investment, ensuring your efforts pay off in the long run.

If you're looking to buy or sell a home or have any questions about the Oregon real estate market, contact Julia Monaghan today.