Which Home Improvements Increase the Resale Value of Your Home?

October 24, 2017

If you’re anticipating a sizable tax refund this year, then your mind is probably full of ideas on how you’re going to spend or invest your money. Rather than splurging on “impulse buys” or something unnecessary, you might consider reinvesting that cash into a long-term asset like your home.

Home renovations will pay you back twice – first with an immediate increase in overall home satisfaction, and again as the value of your home increases for resale purposes. But not all improvement and remodeling ideas yield the same return on investment (ROI).

The “Remodeling Impact Report” from the National Association of Realtors breaks down the resale value and customer satisfaction of 20 different home improvement projects. So before you commit to any major home improvement decisions, consider the following suggestions to help direct your spending.

Which Home Improvements Offer the Highest ROI?

According to the report, a new roof provides the greatest return on your investment while also increasing homeowner satisfaction.

With an average price of almost $8,000, a new roof is a costly investment. But homeowners recaptured 105% of the total cost after selling their home, ultimately achieving a net profit. Furthermore, most homeowners reported higher levels of home satisfaction after choosing to invest in a new roof.

A new roof can eliminate leaks, drafts, poor chimney ventilation and a host of other problems while improving the look and feel of your home. If you are interested in repairing your existing roof or finding a new roof, consider using Porch.com. Porch allows you to specify your exact roofing needs and obtain quotes from pre-screened, licensed, & insured contractors in your area. These local contractors compete for your business, which means a better deal for you.

The Realtor report also highlights the kitchen as an important centerpiece in every home, and it might make sense to devote some of your resources to this hub of activity.

A renovated kitchen provided the most buyer appeal among all home improvements in the report, while also increasing homeowner happiness and satisfaction. A complete remodel could set you back tens of thousands of dollars, but more modest upgrades will cost much less. Even a fresh coat of paint, new flooring or cabinetry, and a few new appliances can do wonders to create a cozy kitchen atmosphere.

If you decide to replace the flooring in your kitchen, you might consider investing in hardwood flooring throughout your home. In addition to being durable, easy to clean, and lovely to look at, newly laid or refinished hardwood floors offer the second highest return on investment. On average, homeowners recaptured 90-100% of the flooring cost after selling their home.

And while it’s not as noticeable as your kitchen or roof, your home’s energy efficiency is the next best place to look for future savings. There are two different ways to reduce energy costs in your home:

  1. Reduce overall usage
  2. Improve efficiency

To reduce overall heating and cooling, one solution is to upgrade your thermostat. By turning your heating, ventilation and air conditioning (HVAC) systems off when your home is empty, a smart thermostat will cut down on waste. Smart thermostats allow you program a personalized weekly HVAC schedule to reduce heating and cooling while you are away from your home.

Once you reduce waste, you might consider your home’s overall energy efficiency. Improving efficiency ultimately means using less energy to maintain the temperature of your home. Your windows, doors, siding, and attic are all places to check for inadequate insulation and air leaks. If you find a minor problem, you can use caulk, weather-stripping, and other materials to make improvements. These materials offer an inexpensive way to improve insulation and make minor repairs.

If your windows, doors, or siding needs complete replacement, that is going to cost more money. Luckily, most of these upgrades are a good investment that will increase the resale value of your home. Replacement windows, for example, can greatly improve the insulation and market appeal of your home. Some newer windows use inert gases between window panes to maximize efficiency, while others offer a protective coating that can reflect heat.

The last place to look for energy savings is the source of all heating and cooling in your home, the HVAC system. Older HVAC systems can use a lot of energy when compared to newer systems because the technology has rapidly improved in the last 50 years.

One great example of new technology is solar energy. If you live in an area with a lot of sunshine, solar energy systems harness that sunshine to deliver renewable energy in your home. The downside is that these systems can be costly to establish, although solar rebate programs and government subsidies can help make solar more affordable.

Are You Considering Any Home Improvements?

Hopefully, the information in this article encourages you to invest in your home. Not only will the right home improvements contribute to more pleasant living quarters, but they can also entice prospective buyers. When it’s time to sell your house, the upgrades listed in this article can help you achieve a nice profit.

What do you think? Have you funded any home improvements using your income or a loan? Do you have experience using a home improvement shopping site like Porch.com? Please share your experience in the comments section below.

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4 Comments on "Which Home Improvements Increase the Resale Value of Your Home?"


Being that the kitchen is usually the first thing home buyers see and it’s where most families spend a great amount of time, you definitely want to put some time and energy into making it look appealing and inviting.


This is a fantastic article about property resale value.
Completing exterior work can also increase property value, this can be tree lopping, hedge trimming, garden refurbishment or even floor paving. Although some of these exterior work can be quite expensive, it will make your home look nicer whilst increasing value.
Thanks for sharing this article.

Joanne Mahoney
Joanne Mahoney

This spring we are investing in a new furnace and air conditioning unit. The furnace is 25 years old and the air conditioning unit is 17 years old. I would love to spend the money on something fun, but I don’t want to wait until either unit shuts down completely, and we have to “rush” to an expensive decision.


There are no tax breaks for us (or at least not substantial), so we’re just doing the improvements for our own enjoyment. I do think that a properly renovated house (we’re currently renovating a rural shack) is what we should strive for, trying to get all city-like amenities there and still enjoying the fresh air and peacefulness only a village can bring.