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Home Improvements Return on Investment (ROI) Facts

By on Jul 23, 2014
Home Improvements Return on Investment (ROI) Facts

While every homeowner knows to keep up with the daily maintenance of a home in order to make it easier to sell, some think it's a good idea to take on a major project to raise the value of their home before putting it on the market. Major improvement projects are guaranteed to raise the value of a home, but some may not bring a positive return on the initial investment. If anyone is planning to take on a major home improvement project, they should be doing it for the right reasons to get the most out of the project.

When to Start Home Improvement Projects

Home improvement projects have been constantly proven to never bring a return on investment over 100% and the average return the past few years is down to just under 60%. This means that the homeowner is only going to recoup 60% of the money you put into a remodeling project after the home is sold. This ultimately makes home improvement projects a bad investment, but that does not mean they should never be done. Home improvement projects are best to take on when the homeowner plans to stay in their home for a long period of time and they just want to live in a nicer home. This will give the homeowner a better living experience for the time they stay while also increasing the sale price of the home when they eventually sell. The extra benefit that the homeowner receives from living in a newly remodeled home makes up for a slight loss that they will take on when it comes time to sell the home.

Front Door

Best ROI Projects

While no home improvements will give someone their entire investment back, there are still several projects that bring the most return on the dollar. For a project that brings the best return on investment, a homeowner might choose to:

  • Replace old siding
  • Replace the front door
  • Replace the garage door
  • Build a new wood deck
  • Replace the windows

Replacing old siding with fiber cement has proven to bring the best return on investment of any home improvement. This project will cost roughly $13,000 based on an average-sized home, but it will also return 78% of the investment when the home is sold. Safety is one of the most important factors when someone is planning to buy a new home, which is why entry door replacements bring such a high return. A new front door is not only going to make the house look better from the curb, but it will also make any potential buyer feel safe. This combination ultimately allows a new door to bring a 73% return on investment. Much like a new entry door provides curb appeal and safety to a potential buyer, a new garage door does the same thing. Both high-end and mid-level garage doors have been found to bring an estimated 71% return on investment, but the high-end garage door is going to cost about twice as much to purchase and install. A new wood deck or replacement windows will roughly bring a 70% return on investment.


Home improvement projects are a great way to upgrade a home, but homeowners should not expect to get the entire investment back. If home improvement projects are kept to what the home truly needs or something special the homeowner desires, then the project will be well worth the small hit taken when the home is sold.

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