Home improvements can make your house more of a home. But when it comes to attracting buyers and maximizing your return on investment (ROI), some home improvements are smarter than others. Knowing how to increase home value means knowing which improvements give you the biggest bang for your buck.
Below, you’ll find top-rated home improvement projects that should go at the top of your to-do list, according to Zonda. As of 2023, each of these projects tended to return more than they cost to implement.
Average return: 103.5%
If you’re wondering what adds value to a home, one great answer is converting a furnace to an electric heat pump. It may not have much visual pizzazz, but it’s timely, trendy and profitable. Eco-friendly and energy-efficient, heat pumps both heat and cool a home, replacing both fossil fuel-burning furnaces and electricity-gulping air conditioners.
It isn’t cheap—the cost can approach $20,000—but the return on investment is well worth it. And on top of that, you’re doing your part for the environment.
Average return: 102.7%
High on the list of how to increase the value of your home, this remodeling project is all about enhancing the curb appeal. But even if your garage doesn’t face the street, this project could get you back more than you put into it. Depending on the material you choose and the size of the garage, plan on investing between $4,000 to $5,000… and cashing in when you sell.
Average return: 102.3%
Stone is classic. And replacing outdated vinyl siding with stone veneer, either totally or selectively, is a classic way to enhance a home’s curb appeal. How expensive this project ends up being depends on how extensively you swap out vinyl for stone, but it’s reasonable to expect a cost upwards of $11,000. But when you sell your home, you’ll be improving the look of your bottom line.
Average return: 102.9%
Here’s another one of those home improvements that’s focused on curb appeal. The ROI here is based on swapping out your existing entry door for a steel one. This door—a polyurethane foam insulation core wrapped in steel skin—not only looks good but increases energy efficiency by fitting more snugly into door frames, reducing drafts. Steel doors come in a wide range of styles and finishes. And while they can cost over $2,000, they are a great example of what adds value to a home.
Not every home improvement project is going to make you a profit. But they’re all going to make your house more of a home—and make it more attractive to potential buyers. Here are a few ways to increase the value of your home that provide a big impact and a nice-looking ROI.
Average return: 85.7%
A modern, functional kitchen is high on any homebuyer’s list of must-haves. To make a good impression and a decent ROI, don’t gut your kitchen and start from scratch. A minor remodel that includes new, energy-efficient appliances, refaced cabinets, new countertops and sink, fresh flooring and a new coat of paint will bring back a lot of what you put into it. The more drastic the remodel, the less you’ll recoup.
Average return: 68 – 71%
Upgrading fixtures and materials, possibly even adding more space to your bathrooms should be on your home improvement to-do list before you put your home on the market. For the best ROI, keep in mind that, like the kitchen, less is sometimes more.
Average return: 61.2% - 68.5%
Replacing your home’s windows is a solid way to increase home value. You could recoup over two-thirds of the cost of switching to low-E, simulated, divided-light vinyl windows with a custom exterior finish. Go with more expensive wood frames and your ROI will take a hit.
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If you want to know how to increase your home value without spending a lot of cash, look no further than your cleaning supplies and garden tools. Here are some simple projects that can make a big difference.
If you ever plan to put your house on the market, it’s good to know which home improvements can maximize your ROI. If you want the peace of mind of knowing you have a plan for when things go wrong, it’s good to have an American Home Shield warranty that offers coverage for parts of up to 23 home systems and appliances. It can help make for a more worry-free state of mind. It’s all about protecting your time, your money, and your way of living.
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