Maximizing Your Home’s ROI: Smart Improvement Choices

Deciding which home improvements to make isn’t always just about return on investment (ROI). If you’re upgrading your home to enhance your own living experience, it’s difficult to quantify that value. However, if your goal is strictly resale, it’s essential to evaluate your choices carefully. There’s a lot of misleading information out there—from HGTV shows suggesting things like “This kitchen cost $20K, and the seller got back $40K when they sold” to social media claims that a new garage door can bring a 194% ROI or a new front door brings 188% ROI. These figures are misleading and often overlook crucial variables. To help you make informed decisions, we’re offering some expert insight.

Prioritize Routine Maintenance

The best way to protect and enhance your home’s value is by staying on top of routine maintenance. Not only does this bring peace of mind while you live there, but it also prevents buyers from significantly discounting their offers due to perceived neglect. If you’ve maintained some aspects of your home but ignored others, buyers may assume the worst and believe there are other surprises awaiting them, which they will factor into their offer price. If you’re handy and can handle basic maintenance and upgrades yourself, your sweat equity will give you the best chance at a positive ROI.

Manage Your Expectations

Most renovations don’t yield a positive ROI if you plan to sell immediately unless you’re going from zero renovations to 100% (more on that later). If you’re planning to sell soon after a major remodel, it’s best to keep expectations in check. The key is to make your home as functional and appealing as possible for you and your family while maintaining realistic financial expectations. Renovations differ from maintenance—if something is broken, it should be repaired or replaced before selling as a general rule.

Avoid Partial Upgrades

If your home hasn’t been updated in decades, doing one-off renovations—like upgrading a single bathroom or installing a brand-new front door—won’t necessarily translate into a higher sale price, at least not enough to cover what you just spent. Buyers typically fall into two categories: those looking for a complete renovation project at a bargain price or those willing to pay a premium for a fully updated home. Partial upgrades often fail to deliver a strong ROI because they leave lingering work for the next owner.

A home that is 100% move-in ready will attract the highest offers. Buyers will pay a premium if they feel like everything is complete (maintenance) and up to current aesthetic standards. However, once updates fall below that threshold, buyers hesitate to pay a premium. Once you go below 100% and there are still some updates or projects left to do, you lose the ROI.

Think of it like buying a car—new vehicles lose value the moment they leave the lot. Similarly, buyers often pay 20%-25% more for a brand-new home versus a resale home, reinforcing the importance of a fully updated property.

The Power of Paint

If there’s one cost-effective upgrade that offers a strong impact, it’s a fresh coat of paint. However, color choice matters significantly. The wrong shade can turn buyers away, so it’s wise to consult an experienced Realtor or designer before making a final decision. Fresh paint in the wrong color can result in a negative ROI.

Final Thoughts

Before making any major home improvements, consider whether they align with your long-term goals. If you plan to sell soon, focus on maintenance, full-scale updates rather than partial ones, and simple yet impactful changes like painting. Always consult professionals to ensure you’re making the best choices for maximum ROI.