The 10 Best ROI Home Improvements: Projects with the Highest Return
A house is a huge investment, so when you go to sell, you want to make sure you are getting the greatest return at the closing table. But, before you break out that hammer or go searching for contractors, you need to know not only how to calculate return on investment (ROI), but also which projects make the best home improvement investments.
The Highest ROI Home Improvements
Not all home improvement projects are equal. The best ROI for home improvements will depend on a few different factors such as the market, location, contractor, and the house itself. While there are a lot of factors at play, we have gathered information from our past projects across the nation to give you a list of the best ROI home improvements on average, so you get the most bang for your buck when you sell.
1. Kitchen Refresh
Average ROI: 377%
On average, the best return on investment for home improvements is a kitchen refresh. Instead of tearing down your cabinets and changing your kitchen layout, a refresh involves making minor cosmetic updates to your existing kitchen setup. Work can include installing new appliances, painting cabinets, and updating hardware. Because the kitchen is such a focal point of the home, these small updates can have a big impact on the money coming back into your pocket.
2. Refinished Hardwood Floor
Average ROI: 348%
Over and over again, we have found that one of the top ROI home improvements is refinishing hardwood floors. So, if you already have hardwood flooring in your home, then you are in luck. Simply taking the time to refinish them can make the floor look like new and have a huge impact on your return on investment.
3. Minor Fixes
Average ROI: 297%
Another great home improvement ROI is to make minor fixes. Most homes could benefit from some paint, hardware swaps, or deep cleaning. Because these fixes can have a big impact on the look of the home but have low project costs, they often have a high return on investment.
4. Roof Replacement
Average ROI: 288%
Not only is a home’s roof a big part of its curb appeal, but also an old roof can be a red flag. Buyers do not want to have to think about repairing or replacing the roof of their new home. Instead, a new roof increases home value and can result in a big payoff for sellers in some cases.
5. Carpet Replacement
Average ROI: 280%
A damaged, stained, or out-of-style carpet can have buyers running for the hills. A simple fix is to replace the carpet before selling. Not only can this work transform the look of the space, but also it comes with a high home improvement ROI.
6. New Hardwood Flooring
Average ROI: 276%
Instead of replacing old carpet with new carpet, you may want to consider installing hardwood flooring. While on average new hardwood flooring has a slightly lower return than replacing the carpet, both have a high return on investment, and one may be more lucrative than the other depending on the space.
7. Bathroom Refresh
Average ROI: 256%
Another one of the best ROI home improvement projects is to make updates to your bathrooms. Buyers are looking for modern and luxurious bathrooms, so an out-of-style bath just won’t cut it. A quick bathroom refresh is an easy way to turn that dated space into a room that appeals to modern buyers. Work may include painting vanities, updating lighting, replacing hardware, and reglazing the bathtub.
8. Tile Installation
Average ROI: 254%
Another flooring update that has a high home improvement ROI is to install tile floors. Tile flooring can be a good choice for areas like the bathrooms, kitchen, laundry room, and entryways. Make sure you choose a modern design and replace old flooring instead of new flooring to get the highest return on investment with this project when you sell.
Average ROI: 251%
Your home’s first impression is often tied to how it looks from the outside, and landscaping is an easy way to increase curb appeal without having to throw down a lot of cash. Simply weeding gardens, trimming shrubs, and planting perennials could have homeowners walking away with more at the closing table.
10. LVP Flooring
Average ROI: 235%
LVP stands for luxury vinyl plank flooring. It can provide the look of hardwood floors but is lower maintenance and costs less to install. As a result, project costs are lower, but the modern appearance still leads to a high return.
While these may be the best ROI home improvement porjects, we know that finding the cash to make these updates can be a struggle. Fortunately, there is a solution. At Curbio, we help with home improvements before selling with a pay-at-closing price model, so you do not need to worry about funding the projects upfront. This model allows you to get the highest return on your home without sacrificing needed updates because of money.
Curbio (2022). Preparing to Sell: 2022 Home Improvement Report