Remodeling your home can be a great way to increase its value. However, not every project offers the same bang for your buck.

Some remodeling projects can increase your home’s value by more than their cost. Others might not. Check out the list of the best home remodeling projects to increase the value of your home, with return on investment percentages, below.

Note on how the numbers work. A 100% return means your home’s value increases by one dollar for every dollar you’ll spend. A return greater than 100% means that the value increases by more than a dollar, and a return less than 100% means that the value increases by less than a dollar.

1. Refinishing your hardwood floors (147% return)

Topping the list is refinishing your hardwood floors, which increases the value of your home by $1.47 for every dollar you spend. This project can make your home more beautiful and appealing. Estimated cost: $3,400 to $5,000.

2. Installing new wood floors (118% return)

Installing new hardwood floors is also a good investment and makes your home more attractive, too. Estimated cost: $5,500 to $6,500.

3. Upgrading your insulation (100% return)

Upgrading the insulation of your home is a practical project that can give you a dollar-for-dollar return on your investment. This project can help keep your home comfortable, save energy, and lower your utility bills. Estimated cost: $2,500.

4. Installing a new roof (100% return)

This is another practical project that gives you good value for your money. Keeping your roof in good repair is a key part of home maintenance and can help your house pass a buyer’s home inspection. Estimated cost: $12,000.

5. Replacing your garage door (100% return)

A new garage door is another easy remodeling project that can increase the curb appeal of your home and help it sell faster. Estimated cost: $2,000.

6. Converting your basement into a living space (86% return)

Homeowners are looking for more space these days, and converting your basement can be a great idea when you need a family room, a home office, a home gym, and more. Estimated cost: $49,250 to $57,000.

7. Installing fiber cement siding (86% return)

Fiber cement siding looks great and is often durable, pest and fire resistant, and easy to maintain. Installation can be more complicated than other types of siding, however, which can make it more expensive. Estimated cost: $18,600.

8. Renovating a closet (83% return)

Closet remodeling can help you make the best use of the available space and better organize your clothing and possessions. Estimated cost: $5,000 to $6,000.

9. Renovating a full kitchen (75% return)

Major kitchen renovation ideas include opening up the space, adding an island, replacing countertops and cabinets, refinishing floors, and updating appliances. Many people consider the kitchen the most important room in the house! The return can be $0.75 to the dollar. Estimated cost: $60,000 to $80,000.

What are the best remodeling ideas for home sellers?

Less expensive projects that make your home more appealing to buyers are often a good investment. Refinishing kitchen cabinets and hardwood floors, repainting your home and replacing the carpet, updating the front and garage doors, and refreshing the landscaping are all projects that can help you sell your home more quickly and for more money.

It’s also a good idea to look at problems that buyers might not think about when they view your home but that will be revealed during a home inspection. When your home has old plumbing, electrical, and heating and cooling systems or significant maintenance problems, these can influence a buyer’s decision to close the sale of your home and the price they are willing to pay.

What other factors affect the value of home remodeling projects?

Housing professionals often recommend that you consider the value of your home, compared to the value of homes in your community, when estimating the value of remodeling projects.

When renovations increase the value of your home well above the value of comparable houses in your neighborhood, it can make your home harder to sell. On the other hand, if the value of your home is lower than the value of comparable houses, renovations can make it easier to sell at a better price.

Sources: Estimated returns on investment and estimated project costs come from the National Association of REALTORS®, 2022 Remodeling Impact Report. Read the full report here.

Last reviewed and updated February 2024 by Freedom Mortgage.