Are you looking for upgrades for your home that will eventually pay for themselves?
It’s rare that a homeowner considers return on investment before buying new home upgrades. Don’t be that person. Unfortunately, once you put money into your home you typically don’t get the money back.
Home improvements that pay for themselves cut your monthly expenses. They also add value to your home. Not all renovations are created equal when it comes to return.
Here are the home improvements that will pay you back…
Things you’ll learn:
- Home Improvements That Pay For Themselves
- Maintenance Upgrades Nobody Talks About
- Bathroom and Kitchen Upgrades That Make Sense
- Energy Efficient Home Improvements That Save You Money
- Exterior Home Upgrades That Give You The Most bang For Your Buck
Stop Ignoring The Money Leaking From Your Water Heater
There’s one appliance that can cost you a pretty penny each month…
…and most homeowners ignore it completely until it breaks down.
Your water heater.
The Department of Energy estimates water heating makes up around 13% of residential energy costs. For many homes, that makes it the single biggest energy expenditure.
Here’s the thing…
If your water heater has been giving you decent service for years, you’ve been throwing money away. Most residential water heaters aren’t very efficient and can add hundreds of dollars to your power bill every year.
By working with a trusted water heater installation service you can identify if your system needs replacing long before it breaks down.
You can save your family upwards of $550/year by installing a newer heat pump style water heater according to the DOE. Multiply that by the years you’ll own your home and that’s literally thousands of dollars saved that can go towards upgrades that will pay for themselves.
These Exterior Upgrades Make Your Home Worth More
Guess where most homeowners spend their renovation dollars?
Inside their homes.
According to professionals in the field however, you’re better off spending your money outside. Think about it…
When was the last time you walked into a home and didn’t notice the curb appeal? Instead you immediately notice things like the driveway, paint job, front door, and garage.
Curb appeal is everything. If your exterior needs work, buyers won’t make it past the front yard.
Here are the curb appeal home improvements that offer the biggest return on investment.
- Garage door replacement
- Steel entry door
- Manufactured stone veneer
Garage doors have been giving great returns for years. A fresh coat of paint on the garage alone can increase your home’s appeal.
Upgrading your entry door to steel is one of the cheapest ways to improve your ROI. Not only will you improve your home’s energy efficiency and security, but you’ll give your home a facelift too.
Improve your home’s “facial features” by adding some stone veneer accents.
Exterior siding, decks, and garage doors are perfect for throwing on some stone accents.
ENERGY STAR Homes Will Save You Money Month After Month
You can’t go wrong with energy efficient improvements.
I know, energy-efficient improvements don’t sound very sexy. But hear me out…
They save you money every month on utility bills. The more efficient your home is the more money you keep in your pocket.
Efficiency upgrades that pay for themselves include:
- Upgraded windows – ditch the single pane for double or triple.
- Better insulation
- Smart thermostat
- LED lighting
Of course we’d be remiss not mentioning water heaters again. Installing an energy efficient water heater is one of the best home improvement ideas you can do to save money.
The newest heat pump water heaters use as little as 1/3 less energy!
Make Sense Kitchen & Bath Upgrades That Increase Home Value
If you’ve shopped for a home recently, you know that kitchens and bathrooms sell homes.
The problem is that homeowners often take it too far. Trust me, buyers aren’t fooled by granite countertops and gourmet kitchens. They know you ripped them out and that costs you money.
Instead, try to look at it from their perspective.
If you were buying a home what type of upgrades would appeal to you?
Here are some cheap kitchen upgrades that add value.
The better questions to ask are which upgrades will make the biggest impact without breaking your budget?
NAR’s 2025 Remodeling Impact Report found that in 2024 Americans spent over $603 Billion on home renovations.
Here are the bathroom and kitchen renovations that proved you the most ROI.
Kitchen
- Paint Cabinets
- Upgrade countertops
- Replace dated fixtures and cabinet hardware
- Install a tile backsplash
Bathrooms
- Paint Cabinets
- Upgrade countertops
- Replace dated fixtures and cabinet hardware
- Tub to shower conversion
Most of these projects can be done for under $5,000. They also don’t require any demolition or sweat.
If your cabinets are in good condition, a simple paint and refacing job can work wonders.
Swap out the hardware, change the countertops, and add a tile backsplash.
Another inexpensive update is converting your tub to a shower. Installing a stylish walk in shower can cost as little as $500.
Homeowners who opted for minor kitchen and bathroom updates saw a positive ROI of 77%.
Maintenance Home Improvements That Pay You Back
Believe it or not some of the best home improvements are things you’d never consider.
They’re maintenance improvements that modernize your home and improve property value. You’ll also notice they aren’t flashy at all.
Think about homeowners who moved into their forever home right out of college. They put zero focus on upgrades that give you the best ROI.
Things like:
- Roof replacement/repair
- New plumbing
- Electrical panel upgrades
- HVAC Maintenance/replacement
Your roof is the literal foundation of your home. If your roof is leaking or shows signs of wear and tear buyers will assume the rest of your home is too.
Galvanized pipes were installed in most homes built before the 90’s. Do yourself a favor and have them replaced.
Outdated electrical won’t be able to keep up with modern appliances either. If your panel is original to the home you need to hire an electrician to update it.
Lastly, one of the most expensive home utilities is heating and cooling. Make sure your HVAC is up to date and running as efficiently as possible.
Prioritize Your Home Upgrade List
So you know which home improvements add value and pay for themselves.
But where should you start?
You’ll first want to look at your situation. How long do you plan on living in your home? What’s your budget?
If you plan on selling in the next couple years you’ll want to focus mostly on curb appeal. Front door, garage doors, landscaping, and exterior painting.
Think about homeowners that spend money renovating their kitchens and bathrooms when they plan on selling in six months. Do they really get that money back?
Focus on saving your money on utility bills as soon as you move in. Quick and inexpensive fixes like painting cabinets and replacing countertops.
If you plan on being there 5+ years start with your energy upgrades. New water heater, insulation, windows, and sealing any air leaks.
No matter what you do… Don’t neglect maintenance. New roofs and updated electrical/ plumbing will save you money in the long run and give you peace of mind.
Wrap up
Home improvements that pay for themselves have a few things in common.
They save you money on monthly expenses. They add value to your home. Lastly, they help prevent costly repairs from coming out of pocket.
Not all home improvements are created equal my friend. Some net you serious returns while others are money pits.
Upgrade your home by installing a new water heater, energy efficient windows, and fresh coat of paint.
Then sit back and watch those dollars start rolling in.