Home Remodeling Projects With the Highest ROI

Are you thinking about giving your home here in Colorado a facelift but wondering which remodeling projects will pay off when it’s time to sell? You’re not alone! Many homeowners look to increase their property’s value and appeal through renovations. We’ll explore some of the top home remodeling projects that not only transform your living space but also offer the highest returns on your investment.

According to the 2024 Cost VS Value Report by Zonda Media, garage door replacements offered the highest average return at 194%, followed by upgrading to a steel front door with a 188% return on investment — both worth nearly double what they were last year. Surprising data isn’t it?

Curb appeal seems to be key

While you might dream of a designer chef’s kitchen, it turns out that the best returns on home remodeling investments are more about boosting curb appeal than upgrading your kitchen and bathroom. According to a report from Zonda, exterior improvements are where it’s at. The report revealed that nine out of the top ten projects with the highest return on investment focused on the exterior of homes.

“When it comes to adding resale value to a home, exterior replacement projects continue to make the most sense,” stated Clay DeKorne, chief editor of Zonda’s JLC Group.

Source: Remodeling by JLC

Despite the allure of lavish remodels, rising costs for construction labor and building materials mean that not all projects guarantee a significant boost in home value. Only three projects from Zonda’s research typically yield a 100% return on investment: replacing garage doors, upgrading to a steel front door, and adding a stone veneer.

“Discretionary projects like an upscale bathroom or kitchen remodel will feel valuable to those who make the selections but won’t provide nearly as much return to sellers,” DeKorne explained.

Interestingly, a minor kitchen update—which might include painting and refreshing the backsplash—did fare well, recovering 96% of the costs. However, the larger, more upscale kitchen and bathroom renovations didn’t perform as strongly, with returns hovering around 38% and 45% respectively, as found in the Zonda survey.

With high home prices and increasing costs of labor and materials, as a home seller, you need to be very strategic in your efforts to attract the buyers willing to pay top dollar in today’s market.

To get the best bang for your buck, let’s connect and discuss specific renovations that may increase the value of your home and which ones to skip.

Iya Koh, Realtor