Not all home renovations are equal when it comes to return on investment. Here are the ones with the most bang for your buck.
The Best (and Worst) Projects for Your Home’s Resale Value
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Kitchen Remodeling
Kitchen remodels tend to involve a lot of usability upgrades, which buyers love. This remains one of the best projects to increase resale value, and will probably always have a top spot.
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New Fireplace
Installing a new fireplace can quickly increase resale value. And if it’s an upgrade from an older, less efficient wood stove to a gas or electric stove, bonus points. Even renovations for appearance and safety can make a big difference in climates where fireplaces see a lot of use.
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New Front Door
These days, a new front door is seeing a massive resale value: The reason? A new door is immediately apparent, adding to curb appeal while also allowing you to improve security and smart device features.
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Conversion to Bedroom
Finishing an area of the house, especially an attic or basement, into another bedroom can greatly increase the resale value of a house. This is because it adds more square footage, creates a new usable room and opens the house up to buyers with larger families.
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Attic Insulation
Attic insulation with fiberglass can see over 100 percent cost recouped. This means you are technically gaining resale value at no expense when adding important attic insulation. Make sure all gaps are covered and cracks are sealed against pests.
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New Garage Door
Front-facing garage doors can impact curb appeal more than most home components. Upgrade to a better garage door with windows and smart control features to really impress potential buyers.
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Stone Veneers
A veneer can add a skirt of stone to your siding or stone-like wall patterns to various walls inside and outside your house. It can also drastically change the appearance of your home at relatively little cost.
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Backup Generator
A generator may be useful as a safeguard but it doesn’t add a lot of everyday resale value to homes. And this is what buyers care the most about. Exceptions occur in rural or off-grid homes where generators see a lot of use in bad weather.
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Backyard Patio
The patio is a great DIY project but don’t expect to recover more than half the cost as added resale value to your home. These patios aren’t especially visible and are quite common. However, a full upgrade will be more impressive than a just a layer of stone.
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Bathroom Addition
When considering a bathroom addition, it’s important to ask, “Does the house need a new bathroom, based on the number of bedrooms?” A bathroom involves an expensive renovation. And it only adds resale value if you really did need a half-bath in the hallway. However, bathroom remodels see better returns.
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Main Bedroom Addition
An expanded main bedroom can be an expensive project for resale value. And, today’s buyers don’t really care about making main bedrooms larger. Further, as a general rule, only plan a main bedroom addition if you want it and you’re planning on staying in the house for years to come.
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Sunroom
A full sunroom requires careful design, proper insulation and extensive maintenance. And potential buyers may ask, “Why not something else?” Think about a gazebo or screened porch to increase resale value instead.
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Home Office Renovation
Home offices are great if you regularly use them, and a renovation may be important for your work. But don’t expect everyone to feel the same way. Additionally, these renovations don’t contribute much to market resale value.
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Garage Addition
While a garage door has a big impact on home appearance, a bigger or more elaborate garage is harder to notice. And it has limited uses compared to other indoor renovations, which add resale value.
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Window Replacement
Window replacements can vary greatly for resale value. But casual window installations aren’t expected to add much value at all. Look for replacements where you can expand windows for more light or greatly improve their insulation.
FAQs
Which DIY-able home improvement projects offer the best return for homeowners who may want to sell?
Renovation expert Scott McGillivray’s advice is to focus on projects that draw the eye. “Paint, curb appeal upgrades, lighting swaps, and minor kitchen or bathroom refreshes. Focus on updates that make a big visual impact for a small budget,” he says.
About the Expert
- Scott McGillivray is a triple-threat expert in real estate, renovation, and finance with decades of experience in the field. Best known for the award-winning series Income Property, he is the host of At Home With Family Handyman’s Ask… Scott McGillivray.
