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Home Improvements with the Highest ROI

Home Improvements with the Highest ROI

By The Liz Clark Team

The projects that return the most money are almost never the ones people expect. Curb appeal work beats kitchens, exteriors beat interiors, and the single best performer nationally costs under five thousand dollars. The annual Cost vs. Value report has been making this case for years, and the 2025 edition makes it emphatically. Here's where the returns actually are.

Key Takeaways

  • Garage door replacement led the 2025 Cost vs. Value report at 268% of cost recouped nationally.
  • Eight of the ten top-returning projects are exterior replacements rather than interior remodels.
  • A minor midrange kitchen remodel recoups 113%, while a major one recoups 51%.
  • Compass Concierge lets our sellers fund some of this work up front and settle at closing.

Which Home Improvements Have the Best ROI?

Exterior replacement projects return the most, and the data is consistent year over year. The 2025 Cost vs. Value report from the Journal of Light Construction compares average costs for 28 projects against the value they retain at resale across 119 US markets.

The top of the list is dominated by things a buyer sees before they walk in. That first impression turns out to be worth a remarkable amount.

The Top Performers Nationally

  • Garage door replacement — $4,672 average cost against $12,507 in resale value, or 268% recouped.
  • Steel entry door replacement — $2,435 average cost against $5,270 in value, at 216%.
  • Manufactured stone veneer — $11,702 against $24,328, returning 208%.
  • Fiber-cement siding replacement — $21,485 against $24,420, at 114%.

Why Do Exterior Projects Outperform Interior Remodels?

Exterior projects outperform because they're relatively inexpensive and they shape the buyer's very first impression. A buyer forms an opinion in the approach from the sidewalk, and a fresh door or clean siding lifts every room they see afterward.

Scale is the other half of it. Replacement projects have contained budgets and predictable outcomes, so the value they add isn't competing against a very large cost.

What the Pattern Tells Sellers

  • Eight of the top ten returning projects in the report are exterior replacements.
  • Smaller budgets return better — the highest performers all cost well under what a kitchen does.
  • Replacement beats reinvention — swapping a worn component returns more reliably than reconfiguring space.
  • Condition reads as care — buyers extend the impression of a well-kept exterior to the whole house.

Do Kitchen and Bath Remodels Still Pay Off?

They do, and the scope you choose makes all the difference. A minor midrange kitchen remodel recoups 113% of its cost nationally, which puts it among the strongest performers in the entire report.

Going bigger changes the math considerably. A major midrange kitchen remodel returns 51%, and a midrange bath remodel returns 80%, so the sweet spot sits in refreshing rather than rebuilding.

Where the Kitchen and Bath Numbers Land

  • Minor kitchen remodel, midrange — $28,458 in cost against $32,141 in value, at 113%.
  • Bath remodel, midrange — $26,138 against $20,915, at 80%.
  • Major kitchen remodel, midrange — $82,793 against $42,130, at 51%.
  • The takeaway — refacing, refinishing, and updating fixtures generally outperforms full reconfiguration.

How Should Philadelphia Sellers Apply This?

Apply it as a starting framework and then adjust for your specific house and block. These are national averages across 119 markets, and Northwest Philadelphia's older stone housing stock has its own priorities.

We walk this list with sellers before anything gets scheduled. On a Chestnut Hill or Mt. Airy home, the highest-return work is often preserving and refreshing what's already distinctive rather than adding something new.

How We'd Prioritize Locally

  • Start with the approach — entry door, walkway, and landscaping deliver outsized returns on a period home.
  • Refresh rather than reconfigure — original detail is a selling point here, so restoration often beats renovation.
  • Address systems buyers will ask about — roof and heater age come up in nearly every Northwest Philadelphia showing.
  • Use Compass Concierge where it helps — our sellers can fund improvements up front and repay from the sale.

Frequently Asked Questions

What home improvement has the highest return on investment?

Garage door replacement topped the 2025 Cost vs. Value report at 268% of cost recouped nationally, with a steel entry door at 216% right behind it. Both are modest projects with outsized effects on curb appeal.

Is it worth renovating a kitchen before selling?

A minor refresh usually is. The data puts a minor midrange kitchen remodel at 113% recouped and a major one at 51%, so we'd steer most sellers toward updating rather than gutting.

Should you make repairs before listing your home?

In our experience, yes, and the highest-value ones are usually visible from the curb. We'd walk your house with you and rank the list before you spend anything.

Reach Out to The Liz Clark Team Today

The best pre-listing budget is a short one spent in the right places. A few thousand dollars aimed at the approach can move a sale price further than a five-figure interior project.

We've closed over $247 million in Philadelphia sales, and we do this walkthrough with every seller. Reach out to us at The Liz Clark Team before you start any pre-listing work, and ask us about Compass Concierge if you'd rather settle the cost at closing.


Work With Us

If you’re thinking about selling your home, obsessively scrolling for a house, planning a relocation to the area, or just feel unsure where to start, we can help. Reach out for a zero-pressure 30-minute phone or video meeting to get started. We are here to listen, support, and educate so you can feel confident with your decisions in our swiftly moving market