The Top 7 Home Renovations That Bring Homeowners the Highest ROI (Return on Investment)
Owning a home is often one of the biggest financial decisions people make, and with the right improvements, it can also become one of the most profitable. But let’s be real: not every home renovation is going to turn your property into a goldmine. (Looking at you, custom fish tanks and quirky wine cellars.) So, if you’re looking to cash in when it’s time to sell, you’ll want to focus on the upgrades that actually boost your home’s value and provide the highest return on investment.
Here are seven renovations that will not only improve your home’s aesthetics but will also make your wallet happy when it’s time to sell. Plus, I’ve thrown in a few laughs to keep things fun — because we all know renos are stressful enough without needing to get too serious.
1. KITCHEN REMODEL – IT’S STILL THE HEART OF THE HOME
The kitchen is often seen as the crown jewel of any home. It’s where we cook, entertain, and sometimes awkwardly snack while avoiding social situations. Buyers still prioritize kitchens, and for good reason. A mid-range kitchen remodel can recoup between 75% and 100% of your costs. High-end remodels don’t fare quite as well in ROI, though, typically netting 50% to 60%. So, unless you’re Gordon Ramsay, skip the ultra-luxe appliances.
Best Bang for Your Buck:
- Upgrade countertops to quartz or granite (and no, faux marble doesn’t count).
- Reface cabinets instead of replacing them.
- Install energy-efficient appliances (people love that “eco-friendly” tag).
- Update the lighting—LEDs, pendant lights, and under-cabinet fixtures can make your kitchen glow (pun intended).
Pro Tip: If your kitchen still has linoleum flooring, congratulations! You’re halfway to a retro comeback—but seriously, replace it with something timeless like hardwood or tile.
2. BATHROOM UPDATES – BECAUSE NOBODY LIKE’S AN OUTDATED POWDER ROOM
Bathrooms may be small, but they pack a punch when it comes to ROI. According to multiple studies, a bathroom remodel can offer a return of around 60% to 70%. Whether it’s replacing outdated tiles or upgrading your shower to a spa-like experience, buyers love a good bathroom reno. Plus, let’s face it, no one ever fell in love with a house that still has carpet in the bathroom. (Yes, some people still have that.)
Top Bathroom Upgrades to Focus On:
- Install modern, water-saving fixtures (think rain showerheads and dual-flush toilets).
- Replace that old tub with a sleek, modern walk-in shower (especially if you don’t use the tub much).
- Update your vanity—natural stone countertops, new faucets, and trendy lighting are musts.
- Heated floors? Oh, you fancy! It’s an investment, but Canadian winters make them worth it.
Pro Tip: Avoid over-personalization. That bright orange accent wall might match your vibe, but for resale, stick to neutral, timeless tones.
3. CURB APPEAL AND LANDSCAPING – FIRST IMPRESSIONS ARE SO IMPORTANT
You’ve heard the saying: you never get a second chance to make a first impression. That’s especially true for homes. Improving your home’s curb appeal can increase its value by 7% or more. Whether it’s updating your front door, adding some fresh paint, or tidying up the garden, small changes can make a big difference. Even something as simple as planting a few trees can have a serious ROI (and give buyers something to admire while they awkwardly pretend not to peek in your windows).
What Yields the Best Results:
- Freshen up your front door—paint it or replace it with a statement piece.
- Update your outdoor lighting—both functional and stylish.
- Upgrade the driveway, patio, or walkway with stone or interlocking pavers.
- Add low-maintenance greenery like shrubs or perennials.
Pro Tip: Keep it simple! Buyers aren’t looking for a botanical garden—just something that doesn’t scream “hours of yard work ahead!”
4. BASEMENT RENOVATIONS – TURN THAT DUNGEON INTO A MULTI-PURPOSE SPACE
Finishing your basement is one of the most popular home renovations in Canada. A finished basement can give you a 70% ROI, especially in places like Toronto or the Durham Region, where space is at a premium. Whether it’s creating a family room, home office, or even a rental suite, an unfinished basement is just wasted square footage.
Most Valuable Basement Upgrades:
- Add an extra bedroom or bathroom (in-law suites or rentals are always attractive).
- Install good lighting (no one likes a basement that feels like a cave).
- Finish the floors—laminate, vinyl, or even polished concrete are great options.
Pro Tip: Be mindful of moisture issues. Nothing kills a buyer’s vibe like discovering a musty basement. Waterproofing and proper insulation are key!
5. ENERGY EFFICIENCY – SAVE THE PLANET (& YOUR MONEY)
With energy costs rising, energy-efficient upgrades are not just smart—they’re practically expected. Studies show that homebuyers are willing to pay a premium for energy-efficient homes, with some willing to pay up to 3% to 5% more. Whether it’s installing energy-efficient windows or adding insulation, these upgrades not only increase your home’s value but also lower your energy bills (and who doesn’t love saving money?).
Top Energy-Efficient Upgrades:
- Replace old windows with Energy Star-rated ones.
- Add insulation to your attic or basement.
- Install a smart thermostat (bonus: they make you look tech-savvy).
- Consider solar panels if your roof is in good shape and gets a lot of sun.
Pro Tip: If your home still has single-pane windows, it’s time for an upgrade. Seriously, your heating bills and future buyers will thank you.
6. ATTIC INSULATION – HEAT RISES, DON’T LET IT ESCAPE!
Speaking of energy efficiency, one of the most cost-effective upgrades is attic insulation. For relatively low costs, adding insulation can recoup over 100% of its investment by lowering heating and cooling bills. Not only will your home feel cozier in the winter and cooler in the summer, but future buyers will appreciate the energy savings.
Best Insulation Options:
- Fiberglass is affordable and effective.
- Spray foam provides excellent sealing properties.
- Cellulose insulation is eco-friendly and offers great thermal performance.
Pro Tip: Make sure to seal any air leaks before insulating. Insulation alone won’t do much if air is still leaking out.
7. FLOORING UPGRADES – BECAUSE SHAG CARPET ISN’T COMING BACK
Flooring is a huge focal point in any home, and outdated, worn, or stained flooring can be a huge turnoff for buyers. While hardwood floors have the highest ROI (up to 80%), other options like luxury vinyl plank (LVP) and engineered hardwood are also growing in popularity. Modern, durable, and easy to clean, they offer an upscale look at a fraction of the cost.
Most Valuable Flooring Options:
- Hardwood (classic, timeless, and high-ROI).
- Luxury Vinyl Plank (LVP) for durability, especially in high-traffic areas.
- Engineered wood for a more affordable hardwood alternative.
- Tile in bathrooms and kitchens (because spills happen).
Pro Tip: Avoid wall-to-wall carpet unless it’s in a bedroom. In high-traffic areas, it’s a no-go. Trust me, your buyers’ allergies will thank you.
Renovations can be overwhelming and expensive, but by focusing on these high-ROI improvements, you’ll not only enjoy your home more but also maximize your return when it’s time to sell. Kitchens, bathrooms, and energy efficiency top the list, but don’t underestimate the power of a good first impression (hello, curb appeal!).
And remember, you don’t have to go all out. Smart, targeted updates will get you more bang for your buck than splurging on overly personalized or extravagant features. So, take a deep breath, grab that paint roller, and start increasing your home’s value—one reno at a time.
Because, in the end, a home is an investment, not just a place to binge-watch Netflix (though that’s important too).
Ready to take the plunge on your home reno? Looking for expert advice on how to maximize your ROI? Let’s chat! Whether you’re preparing to sell or just want to increase your home’s value, I can guide you through the process and help you make the most of your investment.
For more great articles specific to homeownership, click here along with those noted below!
- Top Outdoor Home Renovations
- Kitchen Renovation Design Tips
- Winter Home Maintenance Tips
If you’re thinking about buying, selling or investing in Durham Region or Toronto, let’s chat! I can be reached at 647-896.6584, by email at info@serenaholmesrealtor.com or by filling out this simple contact form. You can also kick off your search for Durham Region homes for sale by clicking here.
In addition, make sure we’re connected on social @serenaholmesrealtor and you’ve subscribed to my YouTube Channel. And, for other articles specific to real estate investing, click here.
Resources:
HouseLogic: Best ROI Home Improvements
Remodeling Magazine Cost vs. Value Report
