In my prior post Choosing the Right Countertops: A Guide to Stone and Man-Made Materials, I reviewed the variety of materials on the market for countertops both in the kitchen and bathroom. In this post I will share my experience and knowledge into what home improvements are worth considering as well as those to perhaps shy away from both all of which are based on their respective Return On Investment (ROI).
As a real estate Broker and Market Value Appraiser serving the Southern Georgian Bay area for over 20 years, I have been into dozens of area homes. I too am a home and cottage owner so in addition to my real estate practice I have seen and done my fair share of home renovations, improvements and updates. One of the most frequently asked questions I get from home Sellers is regarding advice on how they can increase the value and appeal of their homes. This question is most often asked when they are considering selling their home and want to maximize the sale price and their value.
Out of all the homes I get to see, some owners have done some well thought out improvements, upgrades and or renovations that have increased their home’s value and appeal while others not so much. We all have an emotional tie to our homes and too often money is spent on projects that are of importance to us. In this case the value is a “subjective” one based on our personal preferences, needs, and circumstances. It is very easy to loose sight of the fact that those same factors may be of little or no importance to potential Buyers.
Renovating your home can be an exciting way to enhance your living space, but not all upgrades are created equal when it comes to the Return On Investment (ROI) especially when it comes to resale value. Some home improvements can significantly boost your return on investment (ROI), while others may end up costing you more than they’re worth. Whether you’re planning to sell soon or just want to make smart investments in your home, it’s important to know which renovations add value and which ones could actually hurt your bottom line. Before you break out the toolbox, here’s a look at some of the least profitable home upgrades to avoid.
1. Curb Appeal Upgrades (ROI: 100%+ in Some Cases)
First impressions matter! Enhancing your home’s exterior can increase its value and attract more Buyers.
✅ Fresh Paint (Exterior & Front Door) – A simple, cost-effective refresh
✅ Landscaping – Well-maintained gardens, new sod, and trimmed hedges
✅ Garage Door Replacement – One of the highest ROI projects, often 100%+ return
✅ Updated Lighting – Modern outdoor fixtures improve aesthetics & security
Modern, Neutral Coloured Kitchen
Modern Updated Kitchen
2. Kitchen Updates (ROI: 60-85%)
The kitchen sells the home, but a full remodel isn’t always necessary.
✅ Refacing or Painting Cabinets – A fraction of the cost of replacement
✅ Upgrading Countertops – Quartz or granite offer strong appeal
✅ Modern Backsplash – Affordable update with a high-end look
✅ New Hardware & Fixtures – Small details make a big impact
💡 Pro Tip: Avoid over-customization—neutral, timeless choices appeal to the a broader range of potential Buyers.
3. Bathroom Renovations (ROI: 60-80%)
Buyers want updated bathrooms, but you don’t need a full gut job.
✅ New Vanity & Faucets – Modern designs add instant appeal
✅ Upgraded Lighting & Mirrors – Inexpensive but effective
✅ Re-grouting & Replacing Caulk – Makes an old bathroom look fresh
✅ Walk-in Showers (Over Tubs) – Increasingly popular with buyers
Pantone color guide
4. Fresh Interior Paint (ROI: 100%+)
A fresh coat of paint is one of the highest ROI updates you can make.
✅ Neutral Colors – Appeal to the broadest audience
✅ Lighter Shades – Make spaces look larger and brighter
✅ Matte or Eggshell Finishes – Modern and elegant
5. Energy-Efficient Upgrades (ROI: 60-90%)
With rising energy costs, Buyers love homes with lower utility bills.
✅ New Windows – Improves efficiency & curb appeal
✅ Insulation Upgrades – Low-cost but significant impact
✅ Smart Thermostat – Adds convenience & cost savings
✅ Energy-Efficient Appliances – A selling feature buyers look for
6. Flooring Upgrades (ROI: 70-80%)
Old, worn-out flooring especially carpeting turns Buyers off—a smart flooring refresh can increase your home’s appeal.
✅ Hardwood Refinishing – High impact, lower cost than full replacement
✅ Luxury Vinyl Plank (LVP) – Affordable, durable, and stylish
✅ Consistent Flooring Throughout – Creates a seamless, modern look
Basement Games Room
7. Basement or Attic Finishing (ROI: 65-75%)
Adding usable square footage increases your home’s value.
✅ Basement Renovation – A finished basement = more livable space
✅ Attic Conversion – A great way to add a bedroom or office
8. Minor Updates with Big Impact (ROI Varies, But High!)
✅ Updated Light Fixtures – Modern lighting transforms spaces
✅ New Door Handles & Hardware – A quick, cost-effective facelift
✅ Decluttering & Staging – Virtually 100% ROI because it costs little but makes a big difference
Conversely, here are the home improvements that deliver the lowest ROI not only in 2025 but possibly down the road when you want or need to sell:
1. High-End Kitchen Remodels
❌ Why it Doesn’t Pay Off: While a functional, updated kitchen is a major selling point, over-the-top luxury upgrades don’t always translate to higher resale value. Custom cabinetry, professional-grade appliances, and imported countertops can cost significantly more than what buyers are willing to pay.
❌ Better Alternative: A minor kitchen remodel with fresh paint, new hardware, and mid-range appliances often provides a better ROI.
2. Luxury Bathroom Upgrades
❌ Why it Doesn’t Pay Off: Features like oversized spa tubs, heated floors, and designer fixtures can be enticing but don’t always appeal to the average Buyer.
❌ Better Alternative: A simple bathroom refresh—new fixtures, updated lighting, and a modern vanity—delivers a higher return with a lower investment.
Backyard Pool
3. Swimming Pools and Hot Tubs
❌ Why it Doesn’t Pay Off: Pools are expensive to install and maintain, and they can actually deter Buyers due to upkeep and safety concerns.
❌ The value that a Buyer sees in a pool is not what you may have spent to install and landscape it, rather it’s the enjoyment they envision themselves and their family having through its use.
❌ Better Alternative: Consider enhancing outdoor living with a well-designed patio or deck instead.
4. Over-the-Top Landscaping
❌ Why it Doesn’t Pay Off: While curb appeal is crucial, overly elaborate landscaping—such as koi ponds, custom stonework, or exotic plants—can be costly and difficult to maintain.
❌ Better Alternative: Focus on simple, well-maintained landscaping with native plants and a fresh lawn.
Converted Garage Space
5. Garage or Bedroom Conversions
❌ Why it Doesn’t Pay Off: Converting a garage into a living space or merging two bedrooms into one can limit your home’s appeal. Most Buyers prefer a functional garage and a home with multiple bedrooms.
❌ Better Alternative: Maintain traditional spaces and enhance their appeal with fresh paint, flooring, or updated lighting.
6. Custom Built-Ins and Trendy Designs
❌ Why it Doesn’t Pay Off: Highly personalized built-ins, such as bookshelves or entertainment centers, may not suit future Buyers’ needs. Trendy design choices—like bold wallpaper or bright-colored cabinets—can quickly go out of style.
❌ Better Alternative: Stick with timeless, neutral design choices and use removable decor for personality.
Home Theatre Room
7. Home Theaters and Wine Cellars
❌ Why it Doesn’t Pay Off: These niche features appeal to a limited group of Buyers and don’t add much to the resale price. As we all know technology is constantly changing and improving. Today’s home theatre system may be outdated in a year or two replaced by something else.
❌ Better Alternative: Convert a spare room into a multipurpose space that can be used as an office, gym, or guest room.
Plan & Budget Carefully
Plan Improvements Carefully
The Best ROI? Pricing & Marketing Your Home Right!
Before investing in major renovations, consider whether the cost will be justified by increased home value. The best upgrades focus on functionality, energy efficiency, and broad Buyer appeal. Further, whatever home improvements or updates you may be considering, if your are unsure or need help perhaps consider hiring a designer, they can assist and guide you through the process. As with anything, I strongly suggest getting multiple quotes and don’t be afraid to negotiate. For a small project at my own home I was recently quoted $11,000. After negotiating with the contractor the work was done for $5,000 and nothing was given up or compromised,
Even if you are not planning to sell in the immediate future, Contact Me or direct at 705-443-1037. Let’s discuss which improvements make the most sense for your home and budget.
NOTE: The author is a Broker, Market Value Appraiser-Residential with Sotheby’s International Realty Canada and a Past President (2008) of the One Point Association of REALTORS®.