Build Better For Less With Deductions


Average ROI on Home Improvements

When you are considering renovations, one of the first things that you will be considering is what the average ROI on home improvements will be. It is a myth to think that you will always get an ROI on your renovations or changes, as there are some renovations you may end up doing just for yourself. Specific projects are calculated with an average ROI on home improvements. Learn more about what projects will get you what return right here.

Some Projects Don’t Have a Return

If you are thinking that a fancy swimming pool will add a fortune to your pocket when you sell, think again. It is a selling feature when you sell, but it’s not going to make your home price go up.

That is because you will be spending on maintenance during the course of your ownership, and you will just not get a resale value on the home. It’s part of the home’s foundation now, it’s not an upgrade like a kitchen that can be changed.

Think of that concept when you are renovating to find a return on your investment. The average ROI on home improvements comes when the changes add an extra value and can’t be changed. A roof will give you a return, changing the spare bedroom into an office isn’t unless you know you’re selling to an executive and the changes can’t be made. If you have a built-in customized desk, for example, a certain market may like that. Not every buyer will though.

If your renovations will take a project off of the hands of the next owner, you will probably get a return. There are a few projects that will do that.

Garage Door Installation

A garage door installation is something that a new owner will have to make an expense on. If it is already there, the average ROI on home improvements in the garage will be approximately 98 percent. The key here is to spend a little money.

Adding an automatic installer is great, but if you go a few extra miles here you can get some extra money back. An automatic garage door with some additional security features will help. Add a keypad outside the garage to lift the door automatically, and that will also yield a return. Getting a new garage door that is prettier also will, because permanent curb appeal outside a perennial bed is attractive to almost every buyer.

Finished Basement

The average ROI on home improvements when it comes to a finished basement is significant. The return here can be as high as 75 percent, but there are ways that you can get even more from that.

Most buyers and renters like to see a finished basement in the listing because it automatically gives them more square footage to live in. A bigger home with the same square footage will cost more. A finished basement must have drywall or sheetrock with a painted exterior. Finished flooring is recommended as well.

You can turn part of the basement into a bedroom if you wish, but you will have to check with your local municipality to see what the requirements are. That will add value that will get you a return on your investment. A bathroom will as well, particularly if you add a septic tank to the bathroom. Septic tank maintenance is not a favorite for new home buyers, so you may want to add that to your list of renovations to see a return.

Adding a bathroom anywhere in your home will get you an average ROI on home improvements of approximately 75 percent. This may depend on your location though. In some areas of the country, you may get a higher ROI.

Other ways that you can get an ROI from finishing your basement include adding more projects to the finished basement that a new buyer won’t have to worry about. Home projects such as drain cleaning will decrease the possibility of flooding in the new basement. Replacing old insulation with spray foam insulation will increase the value of the room. Hire pest control services as well for an assessment to make sure that you don’t have any unwelcome guests. This may not give you a return on your investment, but it’s an errand that could pay off with an offer to buy.

It is possible to get a return on your investment from a finished basement before you sell. Renting or leasing out that space will give you some money back before you begin the sales process.


The average ROI on home improvements in your front yard and doorway is significant. A new door will always produce a return on your investment, as much as 91 percent in many areas. The more you spend on the door, the more likely you will get a return. A steel door is a plus that most home buyers will appreciate.

A steel door could be as much as $1,400 or more, but it might get you $1,300 back. Doorways in the interior will give you a return as well, but possibly only at 50 percent. The quality of the door that you put in will make a difference. Adding to the doorway through crown molding, trim, and wainscoting in the room will also make enough of a difference to produce a return.

Patios and Decks

The average ROI for home improvements on patios and decks is approximately 82 percent, but again your location could make a difference. You might get a higher return in some areas of the country. You will also get a higher return on the improvement if you don’t have an existing deck. There are other things to consider when you are thinking of a deck to get a return on your investment.

You want to put in quality to get a quality return. The average deck from the ground up might cost between $5 and 10 thousand. You can get a return as high as 70 percent, or even higher depending on your location. The materials you use will also play a large role here. You don’t want to use composite materials to get a higher return. Find a wood that will last and this adds to your return immediately. The size of the deck matters and a larger deck will also get you a higher return.

Compare these factors with other projects you are considering. If you are improving something in the home for a return on your investment only, a deck might get you a higher return than finishing the basement.

Add more upgrades to your backyard for additional returns. A sprinkler system is something a buyer will like to have. Building fences of the same material as your new deck is not only stylish but offers buyers additional security and privacy they will love. You may also want to get some paving done in the backyard or your driveway. A paver is a small investment that will yield a return.

The Strategic Kitchen Remodel

The average ROI on home improvements for a kitchen remodel will vary. This is one of those projects where you need to be strategic. Every kitchen remodel will get you some return on your investment, but if that is your only goal, a major kitchen remodel is not going to be the way to get your money back.

Gutting the kitchen you have now down to the doorframes will cost you a lot, and return between 60 and 75 percent, depending on what you do with it. A minor kitchen remodel on the other hand will cost much less, and could return as much as 85 to 90 percent. An expensive project isn’t necessarily going to get you a high return. A face-lift in your kitchen with a paint job refinished surfaces, and new appliances, could give you a return on your investment.

If you have a budget of $25,000 for example, putting that into marble kitchen countertops could get you a 100 percent return on your investment. New appliances that are on-trend, such as slide-in stainless steel appliances will also be an upgrade that will get you a return.

Exterior Facelift

The average ROI on home improvements outside is also almost always good. Again, you have to be strategic with it. Think about what you would not want to pay for if you were buying a new home. It would be great to see new windows that will last 20 years, a roof that will last 30 years, and siding that you don’t have to worry about.

If you did all of these jobs, you could be looking at a ballpark of $60 thousand dollars. New siding alone could be as low as $15 thousand, and that could increase the value of your home by at least $10 thousand. It may not be something that a buyer is thinking of unless you let them know that it’s just been done. That is a factor they would weigh before they make an offer.

Vinyl windows will also increase the value of your home, and could be as low as $10 thousand dollars. The cost may be higher though, depending on how many windows you are doing. They may add the same value to your home, by $10 thousand or 75 percent. They will not only look better, but they will also keep your energy consumption down. It’s something buyers don’t want to have to take on their own when they sell. They will pay for them when they buy a new home.

Roof repair or a new roof is an investment that will also pay off at the time of sale. Structural issues are something that buyers are thinking about. If you have stoneware or a chimney for the home, masonry services to ensure all are up to code and up to date are a wise investment as well.

Masonry services are also a unique way to add value to your home. You don’t have to add brick walls on every side of your home. Facing your garage with brick for example is a great way to add a pop to your home, and also make your home more structurally sound. Brick is mold resistant, insect resistant, and fireproof, and will get you a solid return.

Bathroom Remodel

The average ROI on home improvements for a bathroom remodel is 70 percent, but you can get higher in some areas. A bathroom remodel is like a kitchen remodel, gutting it entirely is going to cost more than simply giving it a facelift. You won’t get the same return on your investment either.

You may want to make your bathroom universal, but implementing some home improvements that would assist the aging or disabled. Adding a walk-in shower or support bars in the shower doesn’t have to change your bathroom entirely, but it will definitely give you a return on your investment.

You can build beautiful features around these bars and changes so that it doesn’t look like a universal bathroom. New marble vanities and changing linoleum flooring into tiles can be enough to increase the return on your investment. The thing that bothers you most when you walk into the bathroom is the thing in your bathroom that you should fix or renovate first.


The average ROI on home improvements that involve flooring is significant and can get as high as 150 percent. It’s something buyers are very interested in. A general rule of thumb for renovators is that you should get rid of the carpets. You may have spent a lot on them, but buyers typically do not like them. They see, and might even smell, someone else’s life there. If not, they will see something that needs professional cleaning regularly, and they don’t like to think about that.

Hardwood flooring sells houses and can cost as high as $6 per square foot, plus an additional installation fee. Installation fees are generally a few dollars per square foot as well. Laminate flooring is appreciated as well for much less money. You will get your money back if you change the flooring everywhere.

Inspire Yourself Today

While it is true that kitchens and bathrooms sell houses, there are so many other things you can do to improve the resale value of your home. From new windows to new flooring, be strategic as the wheels of inspiration begin turning. New flooring or new windows don’t have to be boring. There is money to be had in your home improvements if you play your cards right.

Leave a Reply