Are you putting your house on the market this spring? Or are you just hoping to live in a home that’s more comfortable, functional, and efficient? Whatever your reasons for wanting to make some home improvements, it’s important to consider the return on investment (ROI) that potential renovations can offer.

Some upgrades can really boost your home’s value, while others simply won’t pay off in the long run. In this guide, we’ll explore some of the top renovations that offer the best ROI for homeowners.

Kitchen Upgrades

When someone is shopping for a new home, one of the first places they look is the kitchen. That’s why investing in kitchen upgrades can be one of the best ways to increase your home’s value. Plus, meal-prepping in a fabulous kitchen makes the chore so much more enjoyable!

But if you’ve ever eyed the price tag on a full kitchen remodel, you know it can also be one of the most expensive renovations…

Kitchen Renovation Costs

How much does a kitchen remodel cost? Dozens of factors can affect the total price, such as the size of your kitchen, the quality of materials you choose, and whether or not you hire a professional.

• Minor Kitchen Remodel: $28,279
• Midscale Kitchen Remodel: $80,809
• Major Upscale Kitchen Remodel: $158,015

These figures, sourced from Remodeling Magazine, highlight the wide range of investment options available.

How Much Value Does a Kitchen Remodel Add?

While a kitchen remodel can seem like a hefty investment, you can expect to recoup a significant chunk of that investment when it comes time to sell.

Homeowners can see an ROI of nearly 72% for a midrange major kitchen remodel, and over 52% for an upscale major kitchen remodel! So you can cook in your dream kitchen now and cash in later.

Kitchen Upgrades with High ROI

If a full kitchen remodel isn’t in your budget, there are minor upgrades that can still offer a high ROI. These include:

• Cabinet refacing or painting
• Countertop replacement
• Installing an island
• Upgrading to energy-efficient appliances
• Updating hardware and fixtures
• Adding a backsplash
• Replacing plumbing and lighting fixtures

Each of these upgrades can give your kitchen a fresh, updated look and better functionality without breaking the bank.

Bathroom Remodeling

Next to the kitchen, bathrooms steal the show when it comes to home value and buyer appeal. A luxurious spa-like bathroom can be the tipping point for potential buyers, so investing in a bathroom remodel can really pay off.

Bathroom Renovation Costs

Similar to kitchen remodeling, bathroom renovation costs can also vary greatly depending on the extent of the project:

• Small Bathroom Remodel: $5,000+
• Midsize Bathroom Remodel: $14,000+
• Master Bathroom Remodel: $30,000+

These average bathroom remodel price ranges from Home Depot offer a starting point, but keep in mind that every project is unique. Painting walls and updating fixtures may cost a few thousand dollars, while a complete bathroom renovation that relocates plumbing and adds high-end finishes can put you into the tens of thousands.

How Much Value Does a Bathroom Remodel Add?

According to Zillow, 26% of homeowners invest in bathroom renovations, underscoring the importance and value of upgrading this essential space.

According to Zillow’s data, bathroom remodels have the highest potential for increasing your home’s resale value. Even small cosmetic changes can yield a $1.71 increase in home value for every $1 spent! That’s a better return than investing in the stock market!

If you’re looking to go beyond a fresh coat of paint and minor upgrades, a midrange remodel can yield a 70% return on investment and over 56% for an upscale remodel.

Bathroom Upgrades with High ROI

If you’re looking to make smaller upgrades that still offer a high ROI, consider:

• Updating fixtures and hardware
• Replacing outdated tile or flooring
• Adding double vanities
• Installing a new showerhead or bathtub
• Repainting walls and cabinets
• Adding storage options

With these upgrades, you can give your bathroom a refreshed look and increased functionality without blowing your budget.

Curb Appeal Enhancements

How do you feel when you pull up to your home? This first impression can make all the difference for potential buyers, so investing in curb appeal enhancements is a smart move when looking to increase your home’s value.

Curb Appeal Renovation Costs

Like any other renovation, the cost of enhancing your home’s curb appeal will depend on the extent of the project. Some popular options include:

• Front door replacement: $450+
• Landscaping and gardening: $2,600+
• Exterior painting: $3,000+
• Siding replacement: $8,420+

These figures from Forbes offer a general idea of potential costs, but the final price tag will depend on factors such as your location, the size of your home, and the materials used.

How Much Value Do Curb Appeal Improvements Add?

Realtors agree: curb appeal is crucial for selling homes. According to the National Association of Realtors, 79% believe it’s key to attracting buyers, and 94% recommend sprucing it up before listing.

The Journal of Real Estate Finance and Economics also reveals curb appeal can impact a home’s sale price by as much as 7%.

And Virginia Tech research shows homes with great curb appeal can sell for up to 12.7% more.

So curb appeal isn’t just about making the neighbors jealous — it can also boost your home’s value and help you sell more quickly at a higher sale price.

Home Exterior Upgrades with High ROI

From budget-friendly to more substantial investments, here are a few curb appeal enhancements with high ROI:

• Basic lawn care and landscaping
• Planting trees and flowers
• Updating exterior light fixtures
• Adding landscape lighting
• Replacing old or damaged siding
• Adding a fresh coat of paint to the front door, trim, and shutters
• Power washing the exterior

It’s amazing what a weekend of yard work or a fresh coat of paint can do to transform your home’s exterior and increase its value!

Energy-Efficient Home Improvements

With the cost of energy on the rise, investing in energy-efficient home improvements can offer significant savings for you now and make your home more attractive to buyers later. Plus, many of these upgrades can also provide tax credits and incentives to help offset the costs of installation.

Energy-Efficient Home Renovation Costs

The cost of energy-efficient home improvements will depend on what you’re looking to upgrade.

The simplest of all is replacing traditional light bulbs with LED or CFL lights, which can cost as little as a few dollars per bulb. By replacing the five most used light fixtures or bulbs in your home with ENERGY STAR alternatives, you can save up to $75 each year.

On the other hand, more substantial projects such as upgrading to ENERGY STAR-rated appliances, better home insulation, or installing solar panels could cost thousands of dollars.

It all depends on your budget and goals for energy efficiency.

But as we mentioned above, tax credits and incentives like the Inflation Reduction Act can also help reduce the overall out-of-pocket cost of these projects.

And it might also be worth exploring financing options to help spread out the cost of these upgrades over time.

How Much Value Does an Energy-Efficient Home Add?

An energy-efficient house can save homeowners an impressive 20-30% on utilities when compared to standard homes, according to the Department of Energy (DOE). So even if the upfront costs of energy-efficient home improvements seem high, they can reduce your monthly expenses while also increasing your home’s value.

Research by the National Association of Home Builders shows people are happy to pay about $9,292 more for a house that cuts down yearly energy bills by $1,000. And the DOE notes that homes with better energy efficiency often sell for up to 8% more than less efficient ones.

Energy-Efficient Home Upgrades with High ROI

Throughout your home, there are systems and features that, when upgraded, can help you save on energy costs. While everyone’s talking about solar panels and electric car chargers, there are other energy-saving enhancements with a higher ROI to consider:

• Installing a programmable or smart thermostat
• Upgrading to ENERGY STAR-rated appliances
• Replacing an old heating or cooling system with a more energy-efficient one
• Adding insulation in the attic or walls
• Upgrading to a hybrid or tankless water heater
• Switching to low-flow water fixtures and toilets
• Adding better insulation or crawl space encapsulation
• Sealing air leaks around windows and doors

From the plumbing to the electrical systems and everything in between, there are energy-efficient alternatives and upgrades that can provide significant cost savings and raise your home’s value.

The Value of Consistent Maintenance for Energy Efficiency and Longevity

Don’t overlook the value of regular check-ups for your home’s systems, especially when it comes to HVAC maintenance, water heater flushes, and other crucial tasks around the house.

Consistent maintenance and minor repairs by a professional can help you save energy and money over the long term. An affordable home maintenance plan can help you stay on top of these tasks and keep your home in top condition for longer.

How to Know if You Should Invest in Home Renovations

Just because you have the money to invest in home renovations doesn’t necessarily mean you should. Before you start any major home improvement project, consider these factors to determine if it’s the right move for you:

1. Budget: Make sure you have the funds available to cover the upfront costs of your desired renovation.
2. Energy Savings and ROI: Research the potential energy savings and return on investment for the specific upgrades you’re considering.
3. Current State of Your Home: Evaluate the current condition of your home and prioritize renovations that will improve its overall function and safety.
4. Future Plans: Consider how long you plan to stay in your home and whether the renovations will significantly benefit you during that time.
5. Alternative Options: Before committing to major renovations, consider other, less expensive ways to make your home more comfortable, reliable, or energy-efficient.

If you’re planning to move in the near future, it may be best to focus on smaller, more cost-effective upgrades that will still boost your home’s value. But if you’re planning to stay in your home for a while and want to really enjoy the benefits of energy savings and increased comfort, larger home renovations may be worth it.

Ultimately, the decision will come down to your priorities, budget, and long-term plans for your home. So weigh all of these factors carefully before making any significant investments in home renovations.

Choosing the Best Contractor for Home Renovations

DIY is the trend these days, but when it comes to significant renovations, hiring a professional contractor is your best bet.

If you want to stay within budget, minimize stress and headaches, and ensure quality work, it’s essential to choose the right contractor for your home improvements.

Here are a few pro tips to help you choose the best contractor for home renovations:

• Do your research online, looking at customer reviews and ratings.
• Ask friends or family members for recommendations based on their experiences with contractors.
• Get quotes from multiple contractors to compare both cost and customer experience.
• Check for proper licensing, insurance, and experience in the specific renovations you need.
• Communicate openly with potential contractors to ensure they understand your vision.

Investing in home renovations can be a significant decision, but with the right planning and approach, you can maximize your ROI and enjoy a more functional and comfortable home.

Since 1944, Lee Company has been helping homeowners across Tennessee, Kentucky, Alabama, and Georgia with all their home renovation and maintenance needs!

From those “honey-do” tasks like pressure washing, gutter cleaning, and drywall repairs to full-scale renovations for kitchens, bathrooms, and more, our team of skilled professionals is here to help. Contact us today to start your home improvement project!