The Best ROI Home Improvement Projects

Making home improvements for your family to enjoy or to help sell your home is a great idea, but some improvements are a better use of your money than others. So how do you know you're spending your home improvement dollars wisely? This is an important question if you plan to sell sometime soon. You'll want to undertake projects with a higher return on investment (ROI), allowing you to recoup most, if not more than what you put in. In general, focus on projects that leave a big impression on buyers.

For the best ROI, here's where you should focus your efforts.

1. Home Maintenance

Buyers expect the basic systems of a house to function as intended. They don't want to think about maintenance, at least initially. They know these types of repairs can be costly, and will impact the selling price.

• New roof or siding. Buyers realize the importance of these home parts, and even though it's a more expensive project, they have a high ROI.
• Windows. Replacing the windows can help curb appeal too. It can also improve the energy efficiency and possibly the home's security.
• Paint. It's relatively inexpensive and can be a DIY project. It gives the area a whole new look. You could also paint something like the front door or kitchen cabinets for a high-impact project.   

2. Curb Appeal

When you're selling, the first impression is so important. Improving your curb appeal gets your home noticed and buyers in the door.

• Landscaping. This can easily be a high-ROI project, especially if you plan on doing it yourself. The best landscape designs are simple with clean lines. You don't want buyers to think they would have to do a lot of work to maintain it. Keep everything mowed, trimmed, and edged. Paint the fence, and add mulch. Plants should provide some color.
• Replace the front door. It can change the look of the entry area and improve energy efficiency.

3. More Useable Space

Projects that create additional living space or improve the efficiency and function of an existing space almost always make a big impact.

• Minor kitchen and bathroom remodels. You recoup more of your investment on a smaller remodel project, so if you can avoid gutting these spaces entirely, do it. Skip the bells, whistles, and high-end finishes that can drive the cost up. Painting cabinets and changing out the hardware are good places to start.
• Convert an attic to an extra bedroom. An additional bedroom is always a win with buyers. It can increase your selling price quite a bit in most areas.
• Add a second bathroom. Adding an extra bathroom to an older home, even a half bath, is worth the effort. You may even recoup more than 100% of the cost in hot markets.
• Create an outdoor living space. Any kind of outdoor living space is in high demand right now. If you don't have one, adding it will pay off. The most basic way to go is a patio, but you could opt for a deck or porch if you want to spend more money.
• Finish the basement. It doesn't necessarily have to be fully finished and furnished, just enough that buyers can imagine how they might use the space.

Making the most of your home improvement dollars with a high ROI project will really pay off when it's time to sell. You'll make a better impression with buyers, translating to a better sale price.

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