Home Improvements With the Best ROI

Whether you’re preparing to sell or just want to boost your home’s long-term value, the right renovations can deliver major returns.

But here’s the truth: not every home improvement project pays off. Some upgrades add comfort or style but little resale value, while others can increase your home’s value and save you money.

Before you start knocking down walls or installing a luxury shower, it pays to know which improvements deliver the best return on investment (ROI).

Key Takeaways

✅ Not all home upgrades increase value — prioritize those with proven ROI.

✅ Curb appeal, efficiency, and key functional updates typically offer the best returns.

✅ Energy-efficient and low-maintenance projects appeal to modern buyers.

✅ Track expenses and improvements in a maintenance app for easy reference.

💡Pro tip: Make sure you have the most competitive loan terms because lowering your rate may free up cash for smart home investments.

Why ROI Matters in Home Improvements 💡

Every dollar you spend on your home is an investment — but not all of it translates to increased value. The actual ROI varies by region and price point.

The return on investment (ROI) measures how much of your project’s cost you’ll recoup if you sell.

ROI=Added value/cost of improvements x 100

Example:

If you spend $10,000 on a kitchen refresh that increases your home’s value by $7,000, your ROI is 70%.

💡Pro Tip: Even if you’re not selling soon, focusing on high-ROI projects ensures every upgrade enhances both comfort and value.

Top Home Improvements With the Best ROI

According to 2025 national data from the National Association of REALTORS  (the Remodeling Cost vs. Value Report and Realtor.com insights), these projects consistently pay off.

• ROI figures are estimates and vary by market, property condition, and buyer preferences.

1️⃣ Minor Kitchen Remodel (ROI: 70–80%) 🍳

You don’t need a full gut job to see big returns.

A minor kitchen remodel — think new cabinet fronts, updated hardware, fresh paint, and modern energy-efficient appliances — can dramatically improve your home’s appeal.

✅ Replace dated fixtures and backsplashes

✅ Upgrade to stainless-steel or smart appliances

✅ Refinish cabinets instead of replacing them

✅ Add LED lighting for efficiency and ambiance

💡 Pro Tip: Focus on clean, functional, and timeless — not trendy. A well-updated kitchen is one of the strongest selling points in any market.

See Top Smart Home Upgrades That Actually Add Value for more on how tech-driven updates can further enhance ROI.

2️⃣ Energy-Efficient Upgrades (ROI: 60–75%) ⚡

With energy costs rising, efficiency is one of today’s most desirable home features.

✅ Install a smart thermostat or zoned HVAC

✅ Add insulation in the attic and walls

✅ Replace windows and exterior doors with ENERGY STAR® models

✅ Upgrade to energy-efficient appliances and lighting

💡 Pro Tip: Many of these improvements may qualify for federal or state tax credits — lowering your upfront cost and improving long-term ROI.

See Understanding Escrow Accounts for Taxes and Insurance to understand how property taxes can shift after major improvements.

3️⃣ Bathroom Remodel (ROI: 60–70%) 🚿

Upgrade bathrooms often sell homes — even modest updates go a long way.

✅ Replace outdated tile and fixtures

✅ Install low-flow toilets or water-saving faucets

✅ Add modern lighting and a new vanity

✅ Refresh grout and paint for a clean, updated look

💡 Pro Tip: Focus on functionality, neutral design, and durability. Luxury bathrooms don’t always equal higher ROI — practicality wins.

4️⃣ Curb Appeal Enhancements (ROI: 80–100%) 🌳

First impressions matter — especially when selling.

✅ Replace or paint the front door

✅ Add fresh landscaping and lighting

✅ Power wash the driveway and siding

✅ Repair or update walkways and trim

💡 Pro Tip: According to the National Association of Realtors, landscaping and exterior improvements often deliver the highest ROI—sometimes exceeding 100%.

See Property Taxes, HOAs, and Zoning: The Fine Print You Can’t Ignore to ensure your upgrades comply with local guidelines.

5️⃣ Roof Replacement or Repair (ROI: 55–70%) 🏠

A solid, well-maintained roof not only protects your home but also reassures potential buyers that they’re making a sound investment.

✅ Replace aging shingles or materials

✅ Add energy-efficient or reflective roofing materials

✅ Ensure gutters and flashing are in top shape

💡 Pro Tip: While it's expensive upfront, a new roof often boosts your home's appraisal value and helps it sell faster—especially in competitive markets.

6️⃣ Basement or Attic Conversion (ROI: 60–75%) 🪜

Finishing unused space adds valuable square footage without expanding your footprint.

✅ Convert basements into rec rooms, offices, or in-law suites

✅ Finish attics for bonus bedrooms or studios

✅ Add insulation, proper egress windows, and flooring

💡 Pro Tip: Focus on comfort, moisture control, and code compliance — poorly finished basements can do more harm than good.

7️⃣ Garage Door Replacement (ROI: 95–102%) 🚗

It may not sound glamorous, but it’s one of the highest-ROI home improvements you can make.

✅ Modern, insulated models improve both energy efficiency and aesthetics

✅ Instantly boosts curb appeal and perceived home quality

✅ Often costs under $2,000 — making it a quick win

💡 Pro Tip: A sleek, new garage door is one of those subtle “wow” factors that makes buyers feel your home is well cared for.

8️⃣ Fresh Paint (ROI: Typically High) 🎨

Few upgrades offer better value.

✅ Neutral colors (whites, light grays, beiges) appeal to the broadest audience

✅ Exterior paint can dramatically improve first impressions

✅ DIY-friendly for maximum return

💡 Pro Tip: Fresh paint signals “move-in ready,” often helping homes sell faster and for more.

Projects With Low ROI (Think Twice) ⚠️

Not every upgrade pays off — especially highly personalized or luxury projects.

🚫 Swimming pools (ROI: 30–50%)

🚫 High-end custom kitchens ($100K+ remodels rarely recoup costs)

🚫 Luxury home theaters or wine cellars

🚫 Overly niche smart home gadgets

💡 Pro Tip: Before going big, talk to a local real estate agent or appraiser to understand which improvements actually add value in your market.

Financing Your Improvements the Smart Way 💰

If you’re ready to invest in your home, there are several ways to fund upgrades:

✅ Cash savings — best for smaller projects

✅ Cash-out refinance — access equity for major upgrades (see Understanding Home Equity — and How to Use It Wisely)

✅ HELOC (Home Equity Line of Credit) — flexible for phased renovations

✅ Personal loan or credit — faster access for smaller projects

💡 Pro Tip: Before borrowing, check whether refinancing could lower your rate — see When and How to Refinance Your Mortgage.

How Fincast Helps You Improve Your Home — and Your Finances 🚀

Home upgrades are easier when your mortgage works for you.

Here’s how Fincast helps you free up cash for improvements:

1️⃣ Get pre-approved or use your existing Loan Estimate.

2️⃣ Upload it securely to Fincast.

3️⃣ Vetted lenders compete to offer better rates or lower fees.

4️⃣ You choose the best offer and reinvest the savings into your home.

No spam. No extra credit pulls. Just more room in your budget to make value-boosting improvements.

💡 Pro Tip: Even a 0.25% lower rate could save hundreds a month — which could help fund your next project.

FAQs

1. What’s the single best home improvement for resale?

Curb appeal upgrades and minor kitchen remodels consistently top the list, but every area differs.

2. Do luxury remodels add value?

Only if they match neighborhood standards. Over-improving can actually hurt ROI.

3. How can I increase ROI on any project?

Use quality mid-range materials, keep designs neutral, and document all upgrades for appraisers.

4. Should I renovate before selling?

Only if the project improves marketability or addresses inspection issues.

5. Can I use my mortgage to fund renovations?

Yes — cash-out refinances and HELOCs let you tap equity for home improvements.

Bottom Line

Home improvements can be exciting — but the smartest ones deliver both enjoyment and long-term value.

You’re making wise moves when:

✅ You focus on functionality, efficiency, and curb appeal

✅ You know your ROI before starting

✅ You document and maintain your upgrades

✅ You’ve uploaded your Loan Estimate to Fincast to optimize your mortgage and free up renovation funds

Smart renovations build wealth — not just beauty.

Pro Tips (Save These!)

💡 Focus on timeless, mid-range updates

📈 Prioritize kitchens, bathrooms, and curb appeal

💰 Use equity strategically, not impulsively

🏡 Keep receipts and records for resale value

🚀 Use Fincast to lower your rate and fund your next project

Action Checklist

• Identify 2–3 high-ROI upgrades

• Get multiple contractor quotes

• Track expenses in a maintenance app

• Verify local permits and tax implications

• Upload your Loan Estimate to Fincast

• Reinvest savings into energy-efficient improvements

• Keep before-and-after photos for appraisal records

👉 Ready to fund your next value-boosting project?

Before using a HELOC or personal loan, see whether your mortgage can work harder for you with Fincast. You may discover a more competitive loan offer that saves you money and frees up cash for home renovations.