Want to add value to your property but hate moving?
We all hope to build equity in our homes one day. After all, your place is one of the largest investments you'll make.
Here's the thing:
Most homeowners aren't sure which renovation services actually offer an ROI.
Which home renovations services waste your money?
The ones that don't help you build property value.
And the ones that don't sell with your house.
Without knowing which renovation services to spend your money on, you'll never achieve your goals.
44% of homeowners are spending MORE this year than last year on renovations. These homeowners know what renovations add value.
We’re going to share those renovation services with you in this article.
Let's dig in.
What you'll learn:
Home Renovation ROI – What You Need To Know
Home renovation services that add real value
How to plan your renovation budget
Renovation projects that destroy property value
Home Renovation ROI – What You Need to Know First
Before you run out and buy a sledgehammer… wait.
Don't start renovating your house until you understand ROI.
Return on investment.
Every home renovation service has the potential to increase or decrease your property value. Some renovations pay you back twice what you spend. Others decrease value.
Here are a few key facts you should know:
Americans are spending a lot of money on home renovations.
Homeowners will spend an estimated $509 billion on home renovations by 2025.
That is a lot of remodels!
And while spending money on your home is good… spending money stupidly is not.
Instead of choosing your remodel projects based on what YOU want… Think about what buyers want.
If you live in an area that needs more family-friendly housing… Adding valuable square footage with Coach House Investment can turn your property into a money-making machine. Creating extra income potential immediately adds value to your property.
Pick renovation services that benefit the largest number of buyers.
If you spend $20k on granite countertops and everyone who looks at your house prefers laminate… You just lost $20k. Choose renovations that will help you sell.
Highest Paying Home Renovation Services
Time to get down to business. Below are home renovation services that you can expect the largest ROI from. These are based on current market data.
#1 Garage Door Replacement
You are ready for this…
Replacing your garage door is going to give you the biggest ROI out of any home renovation service in 2025.
Homeowners can expect a 268% return on investment by simply replacing their garage door.
Why?
It immediately upgrades your curb appeal. Costs very little compared to other home renovations. Buyers will notice when they pull up to your house.
Installation takes 1-2 days and costs around $4,500 on average. You can add $11,500+ to your home's value by replacing your garage door.
#2 Entry Door Replacement
Second best bang for your buck? Replace your front door.
Steel entry door replacements net you a 216% ROI. Spend about $2,400 to add over $5,000 to your property value.
The front door is literally the first thing a potential buyer sees when they look at your home. If your door is beat up, it can tell buyers you haven't kept up with maintenance. When you upgrade to a steel entry door with updated hardware, it creates a sense of quality that flows through the rest of the home.
#3 Kitchen Remodeling
kitchens always come in at the top when it comes to renovation services.
While kitchens used to not give you any ROI at all. In 2025 you can expect to see a 113% return on your investment with a minor kitchen remodel.
"What constitutes a minor kitchen remodel?"
New cabinet fronts (not full cabinets)
New fixtures
Modern cooktop or oven
Keep in mind "minor." You do not need to get crazy with quartz countertops and custom cabinets. Sticking with the basics will get you the most bang for your buck.
#4 Bathroom Remodeling
Right behind kitchens, bathrooms are the second most popular room for renovation.
That's because bathroom remodeling returns 73.7% of your costs.
Buy modern fixtures and faucets
New vanity + countertop
Upgraded lighting
New tile or flooring
Remember how we said spa bathrooms are popular now? Here's another reason why. The average bathroom renovation cost is $25,000. You'll get back $18,500 in property value.
Who cares about ROI when you get to soak in an outdoor jacuzzi?
#5 Manufactured Stone Veneer
If you want to improve your home exterior, this sucker is for you.
Manufactured stone veneer returns homeowners 208% of what you spend.
Why stone veneer?
It seriously upgrades your curb appeal. It's cheap compared to other exterior renovations. It's pretty low maintenance and lasts a LONG time.
Stone veneer is a great way to make your home look high-end without breaking the bank.
Planning Your Home Renovation Budget Right
How you spend your money can make or break your goal to increase your home value.
Budget 1-3% of your home's value each year on maintenance and renovations. Take on one large project per year and save smaller projects down the road.
Save yourself some headaches by not going over budget.
"Most homeowners."
Did you catch that? 78% of homeowners go over budget when remodeling.
Don't be that person.
Get multiple quotes from local, licensed contractors. Make sure they have good referrals, are licensed properly, and you can communicate with them. Expect to spend another 10-20% on your budget for unforeseen circumstances.
When To DIY vs Hire Professionals
Painting your walls and swapping out hardware are great DIY projects.
But when it comes to renovations. Sometimes it's best to hire a professional.
NEVER DIY these home renovation services
Electrical
Plumbing
Structural changes
HVAC work
If it can bankrupt you by doing it wrong, do NOT DIY it.
Doing work yourself can actually lower your home value. Trust me.
Do It Yourself Renovation Projects
Want to know the biggest projects you can DIY?
Painting
Installing your own cabinets
Flooring
Improving your Curb Appeal
These are things you can usually do yourself.
Aside from saving you money, DIY projects can be fun too!
Renovation Projects That Destroy Property Value
Not all renovations are good renovations.
Here are some things that can actually decrease your home value.
Over Personalizing Your Space
Painting your bedroom bright yellow to match your crazy personality is not a great idea.
Stick to neutral colors and time tested designs that will appeal to the majority of home buyers.
Neglecting Your Curb Appeal
If your house looks like trash on the outside, who cares what your interior looks like?
Invest in your curb appeal BEFORE you spend big money on interior renovation services.
Skipping Permits
Trust me. Doing work without a permit feels great.
Until you try to sell your house.
Not having a permit can cause you to not sell your home. You may even be forced to rip out what you've already done at additional cost. Also, insurance won't cover damages if you did work on your home without a permit.
Closing Thoughts On Home Renovation Services That Add Value
Home renovation services are a great way to build equity in your home.
If you know which renovations to spend your money on.
Now you do.
Highest ROI home renovations services:
Garage doors
Entry doors
Kitchens
Bathrooms
Exterior improvements
Some home renovations are better left to the professionals.
And some renovations are smarter than others.
Use this guide to wisely choose which home renovation services to spend your money on.
