Home renovations are often driven by personal comfort or the desire to increase property value. Although many homeowners consider upscale projects, these typically yield lower returns on investment (ROI). Instead, exterior improvements, such as siding replacement and minor upgrades, tend to provide the best ROI. A positive first impression of a home, influenced by its curb appeal, can significantly affect perceived value. Planning financially for renovations is essential, regardless of the motivation behind them to ensure better returns in the long run.
While making upscale changes to your home may bring you pleasure, it may not provide much of a return on investment.
Most people gain that first impression upon driving up to your house... If the garage door is dented and dated, the paint on the front door is peeling... that first impression is unlikely to be positive.
The highest ROIs are typically associated with non-flashy, practical renovations.
It may be surprising to learn that siding replacement offers an average ROI of 75% to 85% in 2025.
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