Which home improvements are most often cost effective?

Which Home Improvements Are Most Often Cost Effective?

Not all home upgrades are created equal. Some improvements can significantly increase your home’s value, while others might leave you in the red. So, which home improvements are most often cost effective? The answer depends on the current market, buyer trends, and how you implement each project. If you're planning to sell or simply want to boost your investment, this guide breaks down the upgrades that deliver the highest return on investment (ROI) in today’s market.

Why Cost-Effective Home Improvements Matter

Whether you're preparing to sell or improving for personal enjoyment, cost-effective upgrades help you spend wisely and get more bang for your buck. According to the 2023 Remodeling Cost vs. Value Report, some renovations return over 90% of their cost at resale—while others deliver far less.

Let’s explore the most financially smart improvements for your home in 2024 and beyond.

1. Minor Kitchen Remodel (ROI: ~85%)

The kitchen remains a top priority for buyers. However, you don’t need a complete overhaul to make an impact. Instead, refacing cabinets, replacing countertops, upgrading appliances, and installing modern fixtures offer excellent ROI.

Thinking of selling? Get a free home value estimate to see how your kitchen compares in the local market.

2. Garage Door Replacement (ROI: ~102%)

Surprisingly, garage door replacements top the ROI charts. A new, insulated garage door enhances curb appeal, improves energy efficiency, and signals that the home is well maintained.

According to Zonda Media, this upgrade recoups over 100% of its cost on average—making it one of the best investments before listing your home.

3. Entry Door Replacement (ROI: ~88%)

The front door sets the tone for the entire home. Swapping in a steel or fiberglass entry door improves security, boosts energy efficiency, and instantly elevates curb appeal.

Pair this with fresh exterior paint or siding touch-ups for a cost-effective makeover that makes buyers stop and stare.

4. Energy-Efficient Upgrades

Modern buyers are increasingly eco-conscious. Installing energy-efficient windows, LED lighting, or a smart thermostat not only lowers utility bills but also increases buyer appeal.

You may even qualify for federal tax incentives through programs like the ENERGY STAR® rebate finder. These upgrades make your home stand out without breaking the bank.

5. Bathroom Refresh (ROI: ~70%)

Bathrooms are second only to kitchens in buyer importance. A budget-friendly remodel—new vanity, toilet, fixtures, and flooring—can deliver high ROI without requiring a full demo.

Pro tip: Stick to neutral colors and classic finishes to appeal to a wide range of buyers.

Want inspiration? Visit the Heart of Chicago Homes Blog for staging and design ideas that sell.

6. Interior Paint (ROI: ~60%)

A fresh coat of paint is one of the cheapest yet most effective ways to revitalize a space. Stick to light neutrals like soft gray, beige, or white, which make rooms feel larger and brighter.

This simple upgrade helps your home photograph better—and first impressions matter in today’s competitive market.

7. Landscaping Enhancements

A well-maintained yard adds instant curb appeal and can boost home value by up to 10%, according to the National Association of Realtors®. Focus on basic lawn care, mulching, planting seasonal flowers, and adding outdoor lighting.

It’s affordable, eye-catching, and highly effective—especially for Chicago homes with limited outdoor space.

Improvements with Low ROI (Use Caution)

While the upgrades above offer great returns, some improvements may not justify their cost. Be cautious with:

• Luxury upgrades (like home theaters or wine cellars)
  
  

• Swimming pools (high maintenance, limited buyer appeal in colder climates)
  
  

• Over-customized features (unusual finishes or layouts)
  
  

Instead, focus on practical, universally appealing updates before listing.

How to Prioritize Your Projects

Not sure where to start? Follow this checklist:

• Assess your home’s current condition.
  
  

• Determine your selling timeline.
  
  

• Set a realistic renovation budget.
  
  

• Talk to a local expert for personalized advice.
  
  

Want to explore your options? Check out our home selling resources to start planning with confidence.

Consider a Pre-Listing Cash Offer

Not interested in renovating? You can still sell quickly and fairly. Request a no-obligation cash offer to compare options and choose what works best for your timeline and budget.

Curious About Your Home’s Value? Get a Free Estimate!

Wondering what your home is worth? Get a free, no-obligation home value estimate based on the latest market trends.
   Check your home’s value for free at HeartOfChicagoHomes.com or call/text (312) 361-8288.