Strategic home improvements can help maintain or increase a home's resale value, but some renovations offer a much stronger return on investment than others. By doing renovations to increase home value, you can maintain your home's value if you plan to sell. These improvements can also improve your quality of life at home.
If you’re planning renovations to increase home value, it’s smart to prioritize projects with the best return on investment (ROI). Below is a quick list of the top 5 home improvements that tend to add the most value, plus cost-vs.-value considerations so you can choose the right upgrade for your budget. Also learn about how title loans and registration loans can help when emergencies strike.
Key Takeaways
- The best renovations to increase home value focus on strong return on investment (ROI), curb appeal, energy efficiency, and improvements buyers can immediately recognize.
- Garage door replacement is one of the highest-ROI home improvements, with an estimated 268% ROI, while also improving a home's curb appeal.
- Replacing an entry door with a steel door can deliver an estimated 216% ROI while improving curb appeal, insulation, and energy efficiency.
- Manufactured stone veneer, HVAC upgrades, and new siding can also increase home value, with estimated ROIs of 208%, 103.5%, and 114%, respectively.
- Homeowners should choose renovations based on their budget, local housing market, project costs, and potential resale value, since renovation ROI varies by region, materials, installation costs, and the condition of the home.
What Is Return On Investment (ROI)?
Home improvements that increase home value can help you if you plan to sell your home in the near future. However, you need to be careful what projects you choose to take on because not every home improvement will return you the money you invest.
Return on investment (ROI) tells you how profitable your investments are. You won’t be able to fully calculate the return on investment of your home improvements, as you won’t be able to fully grasp how much fixing a sliding door, for example, increased the value of your home.
However, you should still consider the cost vs value of home improvements. For example, spending $3,000 to improve your kitchen in a neighborhood where houses sell for at least $300,000 likely won’t return much value. Consider your neighborhood's economic factors, what areas are most important in your home, and research the features most good homes have before investing in home improvements.
Top 5 Home Improvements That Increase Home Value
While the main reason to invest in your home improvement is to return value after a sale, you can also take advantage of these improvements. While you live at this home, you can enjoy your improved surroundings, making it a more hospitable place for you and your family.
Note: Below, we will list the expected cost and return on investment of common home renovations. Most of our numbers come from the 2025 Cost vs. Value Report. Keep in mind these numbers are projections and can vary based on your region, professional installation costs, materials, etc.
Here are the top five best ROI home improvements:
1. HVAC
It’s not the most glamorous home project, but experts recommend replacing your traditional furnace with an eco-friendly, renewable-energy-sourced HVAC system. These energy-efficient systems, which are slowly replacing air conditioners, have heat pumps that heat and cool a home simultaneously.
While HVAC conversion is quite expensive, with an average cost of $17,747 for a 2,000-square-foot home, the return on investment is 103.5%. The reason for the HVAC replacement ROI is that these improvements can lower your utility bills, which can add up over a few years.
Replacing an old system can help with emergency efficiency and comfort. However, don’t assume a fancy new system will solve all your home’s problems. Getting the wrong size equipment actually hurts your home's energy efficiency. Have a contractor come to your home and do the proper measurements. Also, hire a professional to do the installation to avoid issues like duct leakage and airflow problems.
2. Garage Door
One of the other best home renovations that increase home value is to replace your garage door. A new garage door can increase curb appeal. It’s one of the first things a potential buyer will see, so you don’t want to present an issue they will already have to fix.
The average cost of $4,672 covers removing and disposing of a 16x7 garage door and installing four-section doors crafted from heavy-duty galvanized steel tracks, compatible with your existing garage door opener. Beyond boosting your home’s curb appeal, upgrading to a modern garage door provides a 268% return on investment, according to the 2025 Cost vs Value Report.
Be careful taking that number as gospel. ROI projections vary based on region and the amount of work you need to do. For example, ROI may be less for a more expensive project that requires new tracks, an opener, or structural work. Not all garage door replacements are cosmetic, so consider the cost before committing.
3. Manufactured Stone Veneer
Manufactured stone veneer (MSV), or faux stone, provides a timeless and attractive appearance. It is also low-maintenance, fire-resistant, and durable against extreme weather conditions like heavy rains and snow, ultimately increasing your home's value.
You can use them both indoors and outdoors, but this project focuses on installing MSV to replace vinyl siding. Keep in mind that this renovation is pricey – costing around $11,000 on average. It gives an ROI of 208% with projected resale value added over $22,000.
We suggest having a professional install your new manufactured stone veneer for ROI. Improperly installed manufactured stone can trap moisture against the wall, and improper detailing can lead to rot and structural damage. You must also have a professional handle the water-resistive barriers, drainage details, and clearances.
4. Entry Door
Replacing a wooden front door with a steel one has become more popular in recent years. Although some may think a steel door looks unusual, many modern options are available in different styles and finishes.
Upgrading your entry door will boost your home’s curb appeal and reduce your electricity bills thanks to its energy efficiency. Your old door may not be sealed properly, but steel doors have an insulated foam core and tight weatherstripping that prevent air leaks and lower energy bills. The average cost for replacing an entry door is $2,435, with an ROI of 216%.
You will only return value with this home renovation if you get a door that fits your home properly. You can spend big money on a good door, but if it’s improperly installed or doesn’t fit, you won’t get any of its benefits.
5. Siding
Old or damaged siding can make your home look worn out. Replacing it will instantly enhance the appearance and value of your home. Fiber cement or vinyl siding is recommended by Consumer Reports. Installing fiber cement siding on a 1,250-square-foot home typically costs around $19,000, with an ROI of 114%.
When getting a siding replacement for ROI, make sure you pay attention to what you find underneath your old siding. Before replacing it, fix any underlying issues you find, including water damage, rot, or deteriorated sheathing.
What If Emergency Repairs Disrupt Your Renovation Plan?
These top home renovations that increase value the most can take time to install if you go through the professionals for installation. However, along the way, you may experience emergencies around the house that need repairing, such as a broken air conditioning unit, exterior damage from a storm, or malfunctioning appliances.
Planned renovations intended to increase resale value generally shouldn't be treated as emergencies. If an unexpected repair affects your home's safety or habitability, first consider insurance coverage, contractor payment plans, savings, or other available financing options.
If you've looked into other alternatives but still require fast emergency funding, Southwest Title Loans offers emergency loans as a solution. Remember, these loans are intended for emergencies, so be sure to review the terms and conditions carefully before applying.
Here are the emergency loans in Arizona we offer:
- Title loans – These secured loans allow you to borrow up to $15,000, using your vehicle’s title value as collateral. You must own the vehicle outright, and the value of your Arizona title loan depends on your car's value. Approval requires three items: a valid photo ID from the state showing your full name and date of birth, a lien-free vehicle title in your name, and a car, truck, or van for inspection. You will retain possession of your vehicle throughout the loan term.
- Registration loans – If you haven’t fully paid off your car, registration loans are an option. They let you borrow up to $2,500 using your vehicle’s registration as collateral. Your income and credit score can affect the amount you can borrow. To qualify, you'll need a state-issued photo ID showing your full name and date of birth, a valid Arizona vehicle registration in your name, and an active checking account in your name.
Begin the process for both loans today with our online request form. We will call you shortly to explain how our loans work and answer your questions. You can then visit our nearest Arizona store with your required items (and vehicle for title loans) to get your items verified. Approval can happen in as little as 30 minutes. Sign the final paperwork, and you can receive your funds within one business day,
Apply For Arizona Emergency Loans – Find A Nearby Arizona Location Today!
Pick 1–2 upgrades based on ROI and budget from the list above to improve your home's value for a future sale. If you need to cover emergency home repairs, Southwest Title Loans can assist with your title loans and registration loans in Arizona. Keep in mind these are not guaranteed loans; you must qualify to receive emergency cash. Review terms and conditions carefully before applying.
Do you feel our options can help? Apply for our Arizona emergency repairs funding options with our secure online loan form, and we’ll call to explain shortly how you can qualify in person.
FAQs About Renovations That Increase Home Value
Which renovations increase home value the most?
Renovating your garage door and entry door have the largest return on investment. Along with the home renovations mentioned above, you also may want to look into kitchen and bathroom remodels, renovating your basement or attic, etc.
How much should I spend on my home remodel?
It depends on your budget. Write down your monthly income and expenses. Determine how much you have left over and what you are willing to invest. Do your research to see which renovations can return the most value at your type of home. Create a savings goal of how much you are willing to spend.
What are the best curb appeal upgrades for ROI?
Renovations that improve curb appeal is anything that you can see on the outside of a house, such as the front door, garage door, and siding. Fix anything outside the house that doesn’t look right tom increase your home’s curb appeal.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
