Home Renovation Ideas

Home renovation ideas transform your space with smart upgrades that improve functionality, value, and aesthetic appeal to boost ROI (Return on Investment). Home renovations ROI refers to the increase in property value or the financial return you get from the money you spend on renovations. 

The higher the ROI, the more beneficial the renovation is in terms of increasing the property’s market value or financial returns. Yet, the ROI varies significantly depending on the type of home renovation.

To guide your choices, RenoFi experts have put together a selection of top home renovations that deliver high returns on investment. Upgrade your property with strategic renovation ideas!

Affordable Home Renovation Ideas 

If you’re looking to increase your home’s value on a budget, consider these low-cost upgrades below. 

1.     Kitchen Renovation

Often considered the home’s centerpiece, the kitchen is crucial for potential buyers and serves as a central hub for family gatherings. Hence, kitchen remodels often offer great returns on resale value. 

However, kitchen remodels can be costly, ranging on average from $26,000 to $130,000+, potentially impacting the ROI. For those on a tight budget, consider minor upgrades that modernize the space and can deliver an average of 85% return on investment.

If your kitchen has a solid foundation, make the most of it by adding enhancements. An expanding kitchen with a small extension can make room for islands, dining areas, or extra appliances. 

A remodel that upgrades appliances, countertops, cabinets, and lighting can yield significant returns. New pendant lighting above the island, updated cabinet hardware, and a distinctive backsplash can dramatically refresh the kitchen’s appearance. 

For a larger yet budget-friendly project, consider refreshing cabinets with new veneers or paint, updating the flooring, enhancing appliances, or fitting new countertops.

To sum up, designing a modern, practical, and attractive kitchen can significantly increase a home’s value.

2.     Bathroom Improvement

Bathroom remodels are a wise investment. Updates like low-flow toilets and showerheads not only save on water bills but also enhance home value. Minor upgrades, such as replacing outdated fixtures, modernizing lighting, and adding stylish elements, can significantly impact resale value without excessive cost. 

On average, bathroom renovations recoup 72.7% of their price, with many sellers investing in these updates before listing their homes.

Midrange remodels, recouping roughly 67% of initial cost, strike a balance between cost and quality, making them an effective choice. Affordable improvements like a porcelain-on-steel tub, rain shower fixtures, and new vanities can refresh the space while keeping expenses in check. 

Even modest changes, such as painting or refinishing cabinets, can yield substantial returns. For those on a budget, targeted updates like replacing fixtures or enhancing the flooring can still provide significant value without a full remodel.

3.     Upgrade Exteriors − Boosting Curb Appeal

The exterior of a home is just as important as the interior for determining its sale value and appeal to buyers. Invest in beautiful landscaping, updated garage doors, and a new roof to boost curb appeal and ensure long-term maintenance. 

Creating an inviting outdoor living area, such as adding a deck, patio, or outdoor kitchen, can enhance both functionality and value. Simple improvements like painting the front door, fixing cracked siding, and cleaning outdoor spaces can also make a notable difference.

Experts recommend focusing on landscaping and exterior aesthetics to make a positive first impression. Additionally, adding or upgrading outdoor living spaces, like a well-constructed deck, can offer an average return on investment of about 89%.

While pools might be tempting, they typically do not offer a strong return on investment compared to other upgrades. Adjusting renovations to suit market trends is essential, as features like swimming pools and high-end upgrades may dissuade buyers because of potential upkeep issues.

4.     Convert Attic/Basement

Transforming an unused basement or attic into a practical living space can significantly enhance your home’s size and market value. 

Converting these areas into extra bedrooms, offices, or recreational zones such as media rooms or fitness centers can boost your home’s attractiveness and address current demands. 

While these renovations can be pricey with an average of between $3,000 and $10,000 for basement waterproofing alone, they offer a high return on investment. Ensuring effective insulation, lighting, and air circulation is key to creating a pleasant and welcoming space. 

Revamping these neglected areas not only adds functional space but also elevates your home’s resale value, especially as the need for home offices continues to rise.

5.     Upgrades for Energy Efficiency

According to Harvard’s Joint Center for Housing Studies, Americans invest over $500 billion annually in home renovations. The focus is increasingly on energy efficiency and healthier living spaces.

In a market that prioritizes sustainability, prospective buyers highly seek energy-efficient improvements. Upgrading to high-efficiency windows, enhancing insulation, and modernizing outdated HVAC systems can cut energy expenses while increasing your property’s worth and attractiveness. 

Incorporating modern smart home solutions, such as programmable thermostats and LED fixtures, is crucial for maintaining comfort and can boost appeal. Additionally, adding solar panels or a tankless water heater can further lower energy costs and appeal to eco-minded buyers. 

These enhancements support environmental goals and offer ongoing savings on energy bills. Installing new windows with ENERGY STAR® certification can enhance comfort and raise property value. Investing in these upgrades aligns with increasing green trends and provides significant financial and resale advantages.

6.     Flooring

Revitalizing your home’s flooring can significantly enhance its appearance and value. A thorough cleaning or repair of existing floors, such as resurfacing hardwood or installing new hardwood, can yield an average return on investment of 70% to 80%. 

Beautiful floors create a strong first impression, and your hardwood floors can be classic and contemporary with a range of stain options. Upgrading from wall-to-wall carpet to hardwood, laminate, or luxury vinyl can transform the overall look of your home. 

Vinyl flooring installation averages $2,400, while high-quality engineered wood costs about $10 to $14 per square foot. These flooring choices are not only attractive but also durable and low-maintenance, appealing to potential buyers. 

Consistency in flooring throughout the home enhances its appeal. Hardwood is a popular choice, while laminate and luxury vinyl plank offer cost-effective alternatives. Luxury vinyl plank, in particular, mimics the appearance of stone or wood with less maintenance, making it a growing favorite among homeowners.

Home Renovations With Highest Returns

Every year, the well-regarded trade publication Remodeling assesses the expenses of major home renovations and estimates the resale value they provide. The ‘Cost vs. Value’ report of 2024 reviews the typical expenses for 23 renovation projects in 150 US regions, revealing that three of these projects offer a return on investment exceeding 100%.

1.     Garage Door Replacement

Swapping out a garage door, which costs about $4,513 on average and can be resold for around $8,751, provides an impressive 193.9% return on investment, almost doubling its value in 2024. This update includes dismantling and discarding a 16-by-seven-foot door and fitting a new one with sturdy galvanized steel tracks while keeping the original opener. 

Upgrading your garage door boosts exterior attractiveness and continues to be one of the best improvements for achieving high returns, so select a design and material that matches your home’s style.

2.     Manufactured Stone Veneer

Homebuyers often favor natural materials like stone for their elegance and luxury, but these can be expensive. Stone veneer offers a budget-friendly alternative, mimicking the look of real stone at a fraction of the cost. 

Averaging $11,287 for installation and adding an average resale value of $17,291, stone veneer delivers an impressive 153.2% return on investment, making it an excellent choice for enhancing curb appeal and maximizing renovation value.

3.     Siding

Worn or deteriorated siding can diminish the appearance of even a well-built home. The report evaluates the benefits of updating it with two high-quality synthetic options:

Fiber-Cement

Replacing 1,250 square feet of siding with fiber cement costs approximately $20,619 and recoups about 88.4% of the investment upon resale. This upgrade replicates the wood grain look while being more budget-friendly and providing better resale value than vinyl siding. 

Additionally, fiber-cement siding is environmentally friendly, resilient, low-maintenance, and energy-efficient, making it an economical option for increasing your home’s worth.

Vinyl

Vinyl siding, a cost-effective option that mimics wood, offers a solid return on investment due to its affordability and ease of installation. Replacing 1,250 square feet with vinyl costs around $17,410, and you can expect to recoup approximately 80.2% of that expense when you sell. 

Although it has a lower ROI than fiber-cement siding, vinyl’s low maintenance, durability, and energy efficiency make it an attractive and economical choice for enhancing your home’s value.

4.     Entry Door Replacement

Replacing a front door with a steel model offers a remarkable 188% return on investment, up from 100% in 2023. Steel doors enhance curb appeal and energy efficiency, fitting snugly to minimize drafts and often featuring various styles and finishes. 

On the other hand, installing a fiberglass grand entrance, which includes widening the doorway and adding decorative sidelights, costs around $11,353 and recoups nearly 97.4% of the expense, significantly boosting your home’s attractiveness and resale value.

5.     HVAC Conversion

With growing environmental awareness, upgrading to energy-efficient features is a top home improvement for high returns. Switching from a fossil-fuel furnace to an electric heat pump appeals to eco-conscious buyers and offers a good ROI due to the relatively low installation cost and the system’s quiet and safe operation. 

Despite a decrease in ROI from last year, driven by fluctuating energy prices, this upgrade remains a valuable investment because it reduces carbon footprints and operational costs while enhancing property value.

These renovation strategies offer significant returns, making sure that each dollar spent boosts your home’s resale value. However, ROI can differ greatly for each home due to factors like regional market conditions, home size and features, and personal circumstances.

Financing Options for Home Renovations

If you have a clear renovation plan and budget, a home equity loan or HELOC could be a solid choice for funding home improvements. These options let you leverage your home’s equity, typically at lower interest rates compared to other loan types. Home equity loans deliver a one-time lump sum, whereas lines of credit allow you to withdraw funds as required.

Although a traditional 90% LTV HELOC seems like a good option, it often falls short if your available equity isn’t enough to cover your renovation plans. RenoFi loans address this by considering your home’s Renovation Value to boost available equity for funding renovations.

For instance, if your home is valued at $500,000 with an outstanding mortgage of $400,000 and you plan a renovation to increase its value to about $640,000, your current loan-to-value (LTV) ratio is 80%. This means a standard home equity loan just won’t work here since you can’t really borrow anything. 

However, with a RenoFi loan, you could leverage the projected after-renovation value, enabling you to borrow up to 150% LTV or 90% LTV. In this case, while a traditional loan leaves you with no additional borrowing potential, a RenoFi loan would allow you to borrow up to $176,000 based on the increased value of your home.

RenoFi is by far the smartest way to finance your project. Learn more and explore your borrowing options.

Conclusion

Home improvement projects can be affordable and effective, enhancing your home’s appeal and functionality without a complete overhaul. By choosing renovations with high ROI, you can increase your property’s value and get the most from its sale. Additionally, well-chosen upgrades can boost your home’s value over time, benefiting you in future refinancing or equity loans.

Moreover, RenoFi loans offer an excellent solution for financing home renovations. Unlike conventional loans that rely on your current home value or require refinancing your primary mortgage—potentially losing your favorable interest rate—RenoFi loans use your home’s projected value after renovations. This approach enables you to borrow significantly more, usually around 11 times more, secure lower monthly payments, and maintain your existing low rate on your primary mortgage.

For those contemplating a home renovation, using RenoFi is the most effective method for funding your project. Discover how RenoFi can help you achieve your renovation goals with the right financial support.