Home Improvement Projects with the Highest ROI

As a Realtor, I’m always clearing up misconceptions about homes, and one misconception I talk about a lot is the value of home improvement projects. You may spend $15,000 on upgrading your home, but that does not mean you can list your home for $15,000 more when it’s time to sell.

Very few home improvements offer a 100% return on your investment. That said, certain home improvement projects will net you much more than others, so let’s talk about what those are! This data is specific to the Indianapolis area, thanks to the folks at Remodeling magazine, who update this list of projects each year.

If you’re making decisions about home improvement projects, you can’t afford to miss this information.

Key Remodeling Trends for 2024

Renovation and remodeling spend has dropped as mortgage rates and home prices have increased steadily since the COVID-19 pandemic. However, increased ROI on remodeling projects has continued to entice people to take the plunge.

If rates continue to decline and homeowners start buying and selling at a greater pace, remodeling is likely to pick back up again. Also, there a lot of homes built in the mid-2000s that will be remodeled as they get older (the greatest number of remodels occurs in homes that are 20 to 40 years old, according to Home Depot).

1. Entry Door Replacement

An entry door replacement can make the front of your home look completely different. This home improvement project gets you back a whopping159.3% of what you pay for it, so it’s well worth doing.

Remove the existing entry door and jambs and replace it with a new, 20-gauge steel door. It should have a clear, dual-pane half-glass panel, as well as new jambs, an aluminum threshold, and a composite doorstop. The door should be factory finished with the same color on both sides. Exterior brick-mold and interior colonial or ranch casings should be pre-finished to match the door color. Don’t forget a new lockset to make sure everything looks shiny and new.

2. Garage Door Replacement

A favorite on this list is a garage door replacement for your home, and this year, this improvement will net you 137.2% of what you spent on it. This is an easy way to really increase your curb appeal, especially if your garage door is an old one.

You’ll want to install a new, four-section garage door on brand-new, heavy-duty steel tracks. You can use your existing motorized opener. The door should be high-tensile strength steel and have two coats of factory paint. You should also ensure that it has foam insulation with thermal seals and a lifetime warranty.

3. Manufactured Stone Veneer

Adding manufactured stone veneer to your home is a very smart move. This year, it will net you 115.1% of what you spend to get the job done. If you have a plain exterior, this is a way to add some pizazz and get an upgraded look with very little effort.

Just take a band of siding from the bottom third of your house’s street-facing façade. You’ll begin at the garage and go around the main entry. Replace that siding with manufactured stone veneer. Include new sills, corners, and an address block with two separate layers of water-resistant barrier underneath the veneer to protect your home.

4. Minor Kitchen Remodel

Most large discretionary projects, like kitchen, bath, and master suite remodels, don’t do that well on this list, but here’s an exception. A minor kitchen remodel will get you 89.1% of what you pay for it.

You may be surprised to know that a minor kitchen remodel actually gets you a substantially better return on your money than a major, expensive kitchen overhaul (which is 45.5%). A minor remodel can make a dated kitchen look entirely different, and honestly, a complete remodel might not even be necessary.

A minor remodel should include a few key upgrades. You can leave the existing cabinet boxes, but you should replace the fronts with new, shaker-style wood panels and drawer fronts. Don’t forget the new hardware! Replace the cooktop, oven range, and fridge with energy-efficient models, probably stainless steel. Replace countertops with laminate (there are a lot of really beautiful options these days that mimic real stone). Add a new mid-priced sink and faucet. Then you can repaint the trim and walls, and you’re done!

5. Grand Entrance

This list is heavy on exterior entries! A fiberglass grand entrance comes in at 71.8% ROI.

This project includes creating an opening for a 12-36-23 door with dual sidelights. The fiberglass door should include a threshold, lockset, and decorative sidelights to match the door.

Trim it out with PVC-wrapped exterior trim to match and colonial or ranch casings finished to match the door.

6. Wood Deck Addition

A wood deck addition comes in at 70.0%, while composite is a lot lower at 47.1%. But . . . think about the cost and time of maintenance when you decide how to proceed. A composite deck addition may still be the way to go.

For this project, you’ll add a 16×20-foot deck that utilizes pressure-treated joists supported by 4x-inch posts that have been anchored to concrete piers. Pressure-treated deck boards can be installed in a linear pattern. You may want to include a built-in bench and planter made with the same material, plus steps and a complete railing system.

I hope this helps you decide what home improvement projects you’d like to tackle next, whether you’re planning to sell or are staying put. If you have any other questions about the value of home improvement projects on homes here in the Greater Lafayette area, leave me a comment, send me an email, or give me a call!