Renovating your home can be exciting, but it’s also an investment. Whether you’re planning to sell or just want to add long-term value, not all renovations are created equal when it comes to return on investment (ROI). Some upgrades, like a modern kitchen or a fresh coat of exterior paint, can significantly increase your home’s market appeal. Others may cost more than they’re worth. So, how do you decide what’s worth the money? Let’s break down the home renovations that deliver the best ROI.

1. Kitchen Remodels
The kitchen is the heart of the home, and buyers know it. A well-executed kitchen remodel can offer one of the highest ROIs.
Minor Upgrades: Projects like new countertops, refaced cabinets, or updated appliances can yield an ROI of 70-80%.
Full Renovations: Larger remodels may cost more, but choosing high-quality, timeless materials ensures you recoup much of the investment.
Pro Tip: Stick to a design that matches the neighborhood’s style and value to avoid overspending.
2. Bathroom Upgrades
Bathrooms are another area where smart updates can pay off.
Mid-Range Remodel: Replacing fixtures, adding a double vanity, or installing modern tile can bring an ROI of 60-70%.
Additions: Adding a new bathroom can increase a home’s value significantly, especially in older homes with limited bathrooms.
Pro Tip: Focus on clean, functional designs that appeal to a wide audience.
3. Curb Appeal Improvements
First impressions matter, and exterior upgrades can make a big difference.
Exterior Painting: Fresh paint or updated siding can increase a home’s value while offering a return of around 60-70%.
Landscaping: Well-designed landscaping can add as much as 20% to your home’s value, with minimal upfront costs.
Roof and Gutters: A new roof or updated gutters not only boosts curb appeal but assures buyers of the home’s structural integrity.
Pro Tip: Simple upgrades like a new front door or garage door can have an ROI of up to 90%.
4. Energy-Efficient Updates
Sustainability and energy savings are increasingly important to buyers.
Windows and Doors: Energy-efficient windows can recoup 65-70% of their cost while reducing utility bills.
Insulation: Adding or upgrading insulation is a low-cost improvement that can yield long-term savings and an ROI of 100% or more.
Solar Panels: While installation costs are high, solar panels can make your home more attractive to eco-conscious buyers.
Pro Tip: Highlight energy-efficient upgrades when marketing your home—they’re a major selling point.
5. Basement and Attic Conversions
Unused spaces can be transformed into functional living areas, adding both value and appeal.
Basement: Finishing a basement can add significant square footage, with an ROI of 70-75%.
Attic: Converting an attic into a bedroom or office often yields an ROI of 60-65%.
Pro Tip: Ensure the space is comfortable and well-lit to make it feel like an integral part of the home.
6. Decks and Outdoor Living Spaces
Outdoor spaces have become a must-have for many buyers.
Wood Decks: Adding a deck can deliver an ROI of 70-75%.
Patios: Simple upgrades like a stamped concrete patio or outdoor lighting enhance usability and value.
Pro Tip: Choose materials that are durable and low-maintenance to appeal to future buyers.
Renovations to Avoid
Not all upgrades will pay off, especially if they’re too personal or out of sync with the neighborhood. Be cautious with:
Luxury Upgrades: High-end features like imported marble or professional-grade appliances may not appeal to all buyers.
Swimming Pools: Pools can deter buyers due to maintenance costs, especially in colder climates.
Over-Customization: Unique design choices that cater to your personal taste may not resonate with buyers.
How XL Property & Contracting Can Help
Choosing the right renovations can feel overwhelming, but you don’t have to do it alone. At XL Property & Contracting, we specialize in helping homeowners maximize their investment through strategic upgrades.
Expert Guidance: We’ll help you prioritize renovations based on your budget and goals.
Quality Workmanship: From kitchens to curb appeal, our team ensures every project is completed with precision and care.
Local Expertise: With deep knowledge of the Milwaukee market, we understand what buyers are looking for in your area.
Ready to increase your home’s value with smart renovations? Contact XL Property today, and let’s start turning your vision into reality.