How to Prioritize Home Improvement Projects for ROI

How to Prioritize Home Improvement Projects for ROI

When it comes to home improvement projects, it’s essential to prioritize those that will yield the highest return on investment (ROI). This is especially important for real estate investors, homeowners, first-time home buyers, and real estate agents who want to maximize their property’s value. In this article, we’ll discuss how to prioritize home improvement projects for ROI, including kitchen and bathroom renovations, energy-efficient upgrades, and curb appeal enhancements.

Understanding ROI in Home Improvement Projects

ROI is a crucial factor to consider when planning home improvement projects. It refers to the percentage of the project cost that you can expect to recoup when you sell your home. For example, if you spend $10,000 on a project and it increases your home’s value by $15,000, your ROI would be 50%.

It’s essential to research and understand which projects will yield the highest ROI before starting any work. This will help you make informed decisions and ensure that your investments pay off in the long run.

Top Home Improvement Projects for ROI

Here are some of the top home improvement projects that can yield a high ROI:

  • Kitchen renovations
  • Bathroom upgrades
  • Energy-efficient improvements
  • Curb appeal enhancements
  • Adding square footage
  • outdoor living spaces

Kitchen Renovations

Kitchen renovations are among the most popular and profitable home improvement projects. According to Remodeling Magazine’s 2021 Cost vs. Value Report, a minor kitchen remodel can yield an ROI of 72.2%. This includes updating cabinets, countertops, appliances, and flooring.

When planning a kitchen renovation, focus on functionality and aesthetics. Choose materials and finishes that are durable and easy to maintain, and opt for a timeless design that will appeal to a broad range of buyers.

Bathroom Upgrades

Bathroom upgrades are another high-ROI home improvement project. The same Cost vs. Value Report mentioned earlier states that a midrange bathroom remodel can yield an ROI of 60.1%. This includes updating fixtures, flooring, and lighting, as well as adding a new vanity and mirror.

When upgrading a bathroom, consider incorporating energy-efficient features, such as low-flow toilets and showerheads, to appeal to eco-conscious buyers. Additionally, ensure that the space is well-lit and has ample storage to maximize functionality.

Energy-Efficient Improvements

Energy-efficient improvements can significantly increase your home’s value and appeal to environmentally conscious buyers. Some examples of energy-efficient upgrades include:

According to the U.S. Department of Energy, homeowners can save up to 15% on heating and cooling costs by air sealing their homes and adding insulation. Additionally, installing solar panels can yield an ROI of up to 97.5%, according to EnergySage.

Curb Appeal Enhancements

Improving your home’s curb appeal can significantly increase its value and attract potential buyers. Some curb appeal enhancement projects include:

  • Landscaping and lawn care
  • Exterior painting
  • Updating the front door and garage door
  • Adding outdoor lighting

According to the National Association of Realtors, a well-landscaped home can add up to 12% to its value. Additionally, a fresh coat of exterior paint can yield an ROI of up to 51%, according to HomeLight.

Adding Square Footage

Adding square footage to your home can significantly increase its value and appeal to potential buyers. This can be achieved through various methods, such as finishing a basement, converting an attic, or adding a room addition.

According to HomeAdvisor, the average cost of a room addition ranges from $20,000 to $75,000, with an ROI of up to 80%. However, it’s essential to ensure that the added square footage is functional and well-designed to maximize its value.

Outdoor Living Spaces

Creating outdoor living spaces, such as decks and patios, can also yield a high ROI. According to Remodeling Magazine’s Cost vs. Value Report, a wood deck addition can yield an ROI of 65.8%, while a composite deck addition can yield an ROI of 63%.

When designing an outdoor living space, consider incorporating features such as seating areas, fire pits, and outdoor kitchens to maximize its appeal and functionality.


Prioritizing home improvement projects for ROI is crucial for maximizing your property’s value and ensuring a profitable Sale. By focusing on projects such as kitchen and bathroom renovations, energy-efficient upgrades, and curb appeal enhancements, you can make informed decisions and invest in improvements that will yield the highest return on investment. Always research and consult with professionals before undertaking any home improvement project to ensure that your investments pay off in the long run.

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.