Which Home Renovations Give You the Best Return on Investment (ROI)?

Home renovations can make your home more enjoyable, but not every project adds the same value when it comes time to sell. Return on investment (ROI) looks at how much of your renovation cost you may recover through increased home value.

Some projects can deliver a strong return, while others are better viewed as improvements that bring joy while living in the home.

Not Every Renovation Pays You Back

Not every home renovation will return the money you put into it—and that's okay. The value of a renovation depends on the project, your neighborhood, the price range of your home, and what buyers are looking for.

• Some renovations can provide a strong return when you sell.

• Others may only recoup part of their cost.

• Expensive doesn't always mean better ROI.

• Cosmetic updates can sometimes have a bigger impact than major renovations.

• A renovation that improves your enjoyment of the home can still be worthwhile, even if it doesn't fully pay for itself.

The Top 3 Renovations With the Highest ROI

New Steel Front Door	100%
Closet Renovation	83%
New Fiberglass Front Door	80%

*Based on the most recent National Association of Realtors (NAR) data 2025

The Top 3 Renovations With the Lowest ROI

Bathroom Renovation	50%
New Primary Suite	54%
Add New Bathroom	56%

*Based on the most recent National Association of Realtors (NAR) data 2025

What About a Kitchen Remodel?

A kitchen remodel can make a home more appealing to buyers, but bigger isn't always better when it comes to ROI. A major, high-end remodel may not return its full cost, especially if the upgrades are well beyond what buyers expect in the neighborhood. For better ROI, consider a minor or mid-range refresh—such as updating cabinets, countertops, hardware, lighting, and paint—rather than completely overhauling the kitchen.

Believe it or not, the most recent NAR data shows the same ROI for a complete kitchen renovation and minor kitchen upgrade.

Renovations That May Not Pay You Back

It’s important to remember that renovation cost does not always equal added home value. You may spend $30,000 on a project but not see the full $30,000 added to your home's resale price. Highly personalized upgrades, luxury finishes, or improvements that are out of line with the neighborhood can be especially difficult to recoup. Before starting a major project, consider whether you're renovating for your enjoyment, resale value, or both.

• Highly personalized renovations

• Luxury finishes in a moderate-priced neighborhood

• Converting bedrooms into specialized spaces

• Very expensive additions

• High-end landscaping

• Swimming pools

Return on Investment vs. Enjoyment

Not every renovation needs to be an investment. Sometimes the best reason to remodel is simply because you'll enjoy your home more. A new kitchen, updated bathroom, or finished basement may not fully pay for itself when you sell, but if you plan to stay for several years, the enjoyment you get from the improvement has real value. The key is knowing whether you're prioritizing return on investment (ROI), enjoyment, or a balance of both.

The Lincoln, NE Angle

What makes sense nationally doesn't always make sense in Lincoln. Local home prices, neighborhoods, buyer preferences, and the age and style of the home can all affect how much value a renovation adds. Before making a major investment, it's worth considering what buyers in your specific Lincoln neighborhood are looking for—and whether the improvement fits the price range of surrounding homes. A renovation that makes sense for a $500,000 home may not provide the same return on a $250,000 home. You always should factor in:

• Lincoln's typical home price

• What buyers in the area are looking for

• Neighborhood price points

• Why you shouldn't over-improve for the neighborhood

• How renovation ROI can vary by property

The best renovation isn't necessarily the one with the biggest price tag. It's the improvement that makes your home more appealing to buyers without spending more than the market is likely to reward you for.

Thinking About Renovating Before You Sell?

Before spending thousands on a renovation, let's look at what buyers in your market are actually looking for and which improvements are most likely to add value. Go to my website and check out the Home Renovation tab and see all the data for yourself.

Contact me with any questions about the buying/selling process. I would be happy to be part of your team.