Best Home Improvements to Increase Resale Value in 2025: ROI Data & Expert Tips

Focusing on home improvements with a high return on investment (ROI) is a strategic financial move for homeowners planning to sell. According to industry data, a new garage door replacement leads with a remarkable 349.3% ROI. This article outlines the most valuable projects, from high-return renovations to effective low-cost updates, to maximize your home's appeal and final sale price based on current market trends.

What home improvements have the best ROI in 2025?

Data from the 2025 Cost vs. Value Report highlights projects that recoup the most of their initial cost. Replacing a garage door offers the highest return, with an average cost of $4,317 and a resale value of $15,081. Other top projects include:

• Entry Door Replacement (Steel): Cost: $2,435 | Resale: $5,270 | ROI: 216%
• Manufactured Stone Veneer: Cost: $11,702 | Resale: $24,328 | ROI: 208%
• Fiber-Cement Siding Replacement: Cost: $21,485 | Resale: $24,420 | ROI: 114%
• Minor Kitchen Remodel (Midrange): Cost: $28,458 | Resale: $32,141 | ROI: 113%

These improvements are valued for enhancing a home's durability, curb appeal, and key functional areas.

Which low-cost improvements boost buyer appeal before listing?

You don't need a large budget to make a significant impact. Based on our experience assessment, these affordable projects are highly effective.

• New Interior Paint: A fresh coat of neutral paint is one of the most common pre-listing projects. It signals that a home is well-maintained and allows buyers to envision themselves in the space. Certain colors, like an olive green kitchen, may even increase the final sale price.
• Enhance Curb Appeal: First impressions are critical. Simple tasks like painting the front door a modern color (e.g., black), basic landscaping, and sealing driveway cracks can be completed over a weekend and make your home stand out in online listings.
• Add Smart Home Technology: With many buyers prioritizing energy efficiency, installing a smart thermostat or smart lights is a relatively low-cost upgrade that can be an attractive selling point.
• Small Bathroom Updates: Instead of a full remodel, consider swapping out dated vanity lighting or re-caulking the tub for a fresh, clean look.
• Flooring Refresh: Deep cleaning carpets, refinishing scratched hardwoods, or repairing damaged tiles shows buyers the home has been cared for.

What renovations typically offer a poor return on investment?

Not all upgrades attract buyers or recoup their costs. It's often wise to avoid these projects if selling is your primary goal:

• Swimming Pools: Many buyers view pools as a maintenance burden or safety concern.
• Luxury Upgrades: High-end finishes like professional-grade appliances may not align with neighborhood values.
• High-End Landscaping: Elaborate water features or intricate gardens can be seen as a hassle.

How should I budget for value-adding renovations?

Before starting any project, determine your budget and financing. Paying with cash is ideal to avoid debt. If financing is necessary, common options include a second mortgage, which provides a lump sum, or a Home Equity Line of Credit (HELOC), which acts as a revolving credit line with a variable interest rate. Most lenders will require that your total loan-to-value ratio remains below 90%.

What if I cannot afford repairs before selling?

If your budget is limited, you have options:

• Sell As-Is: Price the home accordingly, acknowledging that no repairs will be made.
• Offer a Closing Credit: Provide a credit to the buyer at closing to cover the cost of necessary repairs identified in their inspection.

The most valuable improvements balance your current enjoyment with broad buyer appeal. Prioritize projects that enhance functionality and curb appeal, using recent ROI data to guide your investment for the best financial outcome.