Looking to maximize your ROI when selling your home?
As a seller, you need to be smart about the upgrades you choose to invest in. Something as simple as curb appeal can make or break a sale.
The right home improvements can lure in more buyers, resulting in bidding wars that drive your home’s price way up. They also give you a nice return at closing.
The issue?
Some home projects are just awful investments. You throw money down the drain on repairs or remodeling that don’t add any value to your home.
But other projects can offer impressive ROI’s that seem too good to be true.
So which home improvements should you be focusing on?
Here’s the inside scoop:
- Why Exterior Home Upgrades Outperform the Interior
- Best ROI Exterior Projects to Know Before Selling
- How Roofing Affects Your Home’s Value
- Low-Cost Exterior Home Improvements that Drive Buyers Wild
Let’s dive in!
Why Exterior Home Upgrades Outperform Interior Renovations
Here’s a fun fact most homeowners don’t know…
Seven out of the top ten highest ROI home projects are exterior upgrades.
That’s according to the latest Cost vs. Value Report for 2024. And there’s a very good reason for that.
Think about it.
When a potential buyer drives up to your home, the exterior is the first thing they see. If your siding is dingy, paint is peeling, or gutters are falling off, it creates instant distrust. Buyers wonder what you were possibly hiding once they step inside.
Something as simple as roofing can cost you a sale.
Buyers won’t even make it to negotiations if they know the roof needs replacing or repaired. By working with an expert roofing contractor in Olympia, you can ensure your home passes inspection and has earned buyers’ trust. Get the job done right with professionals from the start.
Plus, exterior home improvements tend to cost way less than remodeling projects on the inside. You spend less money upfront and could end up recouping more when it’s time to sell.
Win-win if you ask me.
Best ROI Exterior Projects to Know Before Selling
Now it’s time to get into the nitty gritty.
I want to break down which home improvements offer the best bang for your buck. Here are some projects you’ll want to consider before listing your home:
Garage Door Replacement
I know what you’re thinking…
Garage door? Really? Hear me out.
Garage door replacement offers the best ROI of any home improvement you can make. Homeowners can expect to recoup around 194% of their costs when selling, according to Remodeling Magazine’s data. That means if you spend about $4,500 on a garage door, you can add nearly $9,000 to your home’s value.
Why? Well…
- Insulated garage doors improve energy efficiency and lower utility costs.
- Garage doors make a HUGE impact on curb appeal.
- They’re relatively low cost compared to other high ROI projects.
A new garage door adds instant value and something buyers will notice when they pull up to your home.
Steel Entry Door Replacement
If your home’s front door is looking worse for wear, now is the time to swap it out.
Steel entry door replacements provide nearly 188% return on your investment. Installation typically runs around $2,300… making it one of the cheaper upgrades you can make for maximum impact.
Think about it:
Not only do steel doors provide better security and insulation, but they also give your home a fresh, new look.
Everyone sees your front door when they visit your home. Make a strong first impression with a stylish steel entry door.
Roofing: How Much Does It Matter?
You may be thinking…
Roofing is roofing. As long as nothing is falling off my roof, buyers won’t really care.
Wrong.
Most buyers won’t want to move into a new home only to have to stress about repairing or replacing the roof. A damaged or aging roof is a huge red flag during home inspections.
So what kind of ROI can you expect from a new roof?
You’re looking at roughly 60-68% return on investment for asphalt shingle roofs. It’s not as high as some of the doors we mentioned above, but roofing provides benefits that go beyond percentages.
Here’s what I mean:
- Replacing your roof eliminates one of the biggest concerns buyers have when walking through your home.
- A new roof means passing inspection with flying colors.
- New roofs show buyers you’ve taken care of the home.
Home sell faster and for more money when they have a new roof.
Don’t gamble with your roof and ROI. Work with local roofing contractors who have been around for years.
Siding
You might be tempted to skip siding replacement. But I promise, your home won’t sell without it.
Replacing outdated siding with fiber-cement options will net you around 88% ROI. Not only is fiber cement durable and long-lasting (50+ years!), but vinyl siding is another great option that typically returns 80% of your investment. Both options are much cheaper than installing a new roof.
Another huge win? Energy efficiency.
New siding can dramatically decrease heat loss and lower energy bills. Not to mention, your home just looks bad if the siding is chipping and faded.
Replace your siding and watch how much more interested buyers become.
Stone Veneer
Say you want to take your curb appeal to the next level.
Manufactured stone veneer offers homeowners roughly 153% return on investment. Adding stone accents to your home’s exterior creates a luxurious look that will wow potential buyers.
Want to know the best part?
It’s not super expensive and works great for:
- Front entry ways
- Around your foundation
- Accent walls that buyers see from the street
Stone veneer is one of my favorite exterior upgrades because it instantly makes your home seem more expensive.
Low-Cost Exterior Home Improvements That Drive Buyers Wild
It doesn’t always have to be big home improvement projects.
Small touches here and there can also help add value to your home. While these improvements may not net you a crazy ROI, they go a long way when selling your home.
Use these low-cost upgrades to compliment bigger projects:
- Fresh paint or touch ups
- Update house numbers & mailbox
- Install new outdoor lighting
- Power wash driveway/walkways
- Maintain your landscaping
These things don’t cost a lot of money to fix. But once they’re off your to-do list, buyers will notice.
Timing is Everything: When Should You Make Exterior Home Improvements?
Remember how I said roofing provides benefits that go beyond percentages?
Here’s another one.
Timing of exterior home projects matters.
The newer an improvement is, the more value it holds when selling your home. If you replace your roof five years before selling, it won’t seem like a brand new improvement to buyers like if you did it within the last six months.
If possible, try to complete major exterior home projects 1-2 years before you plan on selling. Things like roofing and siding can often take longer, so make sure to factor that into your timeline.
Local market conditions play a role here too.
You’re going to want to make as many upgrades as possible in highly competitive markets. Certain markets are made up of buyers that value turn-key homes over fixer uppers. If your home looks like a model home when it hits the market, you could price way above your comps.
Bottom Line
I hope you realize one thing by now.
Exterior home improvements provide you with the best ROI when selling your home. The data says it all.
Your home’s exterior is what sells your home.
No matter how beautiful your kitchen remodel is, buyers won’t know it when they’re driving past your house. If your exterior gives off these vibes, then buyers aren’t ever going to want to step inside.
Instead of throwing away money on home projects that don’t add value, focus on the exterior. You’ll spend less money and end up netting more when it’s time to close.
Sell smart and watch your profits roll in!
