Are Home Improvements Worth It? A Complete Guide for Homeowners

Introduction

One year back, my wife and I were standing in our kitchen when I noticed those 90s brown cabinets and asked her, “Should I change this…or is it a waste of money?”

As a homeowner, we all have asked this question to ourselves once or twice. Be it redoing the bathrooms, new energy-efficient windows, or finally making your mostly unused backyard a great entertaining space.

Home improvements and renovations are both exciting and investing. As an investment, you need to know what’s really worth it, the comfort and easy maintenance of your home, the increase in value, or, at times, maybe none of them if it’s done for the wrong reasons.

LB Group, top Renovation Services has also worked with many homeowners in similar situations, like me and my wife. The only conclusion we have found is that it’s never really a clear yes or no.

Let’s understand the whys and hows in this simple guide and learn to decide for ourselves with confidence, no matter what we need in our homes, without overcapitalizing or going with a current trend that might go outdated in a few years.

Why Home Improvements Matter

Home improvements are a part of many homeowner’s lives in some shape or form. At times, we are driven by a personal emotional attachment to the house we have been living in for years. Many times, it is to increase the resale value of the property we want to move from in the future.

What we often look for when we say “worth” in a home improvement situation is resale value. This is the only monetary kind of valuation that homeowners look for in a renovation. However, there is more to it.

Let us look at three factors that come into play:

1. Emotional Value

Home improvements add to the emotional value in a personal and abstract way that is difficult to measure. Think of those granite countertops with stainless steel islands in a kitchen, or the soaking bathtub with double vanities in the bathroom.

Emotional value is important, but it is not the only reason to do any home improvement. It should be there in each and every renovation that one decides to go for.

Example: We once had a client that was concerned about the ROI of replacing small, low windows in a living room with big floor-to-ceiling windows. While it is never ideal to spend a lot of money on small rooms in a house, this was the only reason this customer came to us. After the job was completed, they informed us that the change in natural light entering the room made it “worth it” for them.

2. Practical Value

We all have to live in our homes at the end of the day. Renovations that improve daily life either by convenience, by ease, or even the environment we live in are always a practical benefit that adds to our homes.

Practical value is often an indirect kind of increase in our home’s value that accumulates with every year we enjoy the fruit of our home improvement labors.

3. Financial Value

ROI, or return on investment, is the commonly used measurement of the financial aspect of a renovation job done. The market value increase of a property through home improvement is difficult to accurately measure without actually listing and selling the property.

Example: An ROI calculator might give you a potential 70% payback. However, that does not mean you will receive a 70% bump to your property listing value. While sometimes it does happen, many market conditions do not. All we can take from the ROI number and use it as a basic measure.

Home Improvement’s Resale Value

Resale value is one of the major points of deliberation on “worth.” As discussed above, we have to keep in mind that ROI is just a fraction of the real value.

Kitchen

• ROI Value: 60–80% (average)
  
• Note: Luxury renovations might have lower ROI as they are generally not desired by many buyers.
  
• Priority: Focus on modernizing your fixtures and cabinets while improving storage capacity.
  

Bathrooms

• ROI Value: 50–70%
  
• Note: Generally a safe bet, even for high-end renovations, if they match current style trends.
  
• Priority: Upgrade fixtures, lighting, tiling, and cabinetry. Add low-flow toilets and water-saving features.
  

Energy-Saving Improvements

• Examples: Window replacements, insulation, solar, efficient HVAC systems.
  
• ROI Value: Immediate in energy savings; not always seen in resale price.
  
• Priority: Pick the most efficient improvement for your climate and home age.
  

Outdoor Living Spaces and Yards

• ROI Value: 50–70% (varies greatly)
  
• Note: Climate plays a big role in usability.
  
• Priority: Ensure additions are low-maintenance and usable year-round.

Factors That Determine if It’s Worth It

Your Future Plans

If you’re staying in your home for the next 10+ years, personal enjoyment may outweigh ROI. If you’re selling within 2 years, focus on buyer-attractive upgrades.

Neighborhood Standards

Renovating beyond your area’s norms can make it hard to recoup costs. For example, adding a $150,000 luxury kitchen in a neighborhood where homes average $300,000 may not make financial sense.

Market Conditions

In a seller’s market, even modest improvements can yield strong returns. In a slow market, focus on essential maintenance and low-cost updates.

Quality of Work

Professional finishes matter. Poor workmanship can not only lower ROI—it can actively turn buyers away.

Cost vs. Benefit Analysis

Here’s how to weigh a project:

1. Estimate Costs: Get multiple quotes from reputable contractors (LB Group always encourages getting at least three).
   
2. Research ROI: Use regional remodeling cost vs. value reports.
   
3. Consider Intangible Benefits: Think about your daily comfort and enjoyment.
   
4. Account for Maintenance: A new pool may look great, but it comes with ongoing costs.
   

Examples

Success Story:
A couple updated their 1980s kitchen with quartz counters, modern cabinets, and Energy-Star appliances. They recouped 75% of costs on resale and enjoyed the space daily until then.

Lesson: Avoid overspending on luxury finishes if ROI is important.

Cautionary Tale:
A family spent $80,000 on a luxury sunroom in a mid-priced neighborhood. It added only $30,000 in appraised value.

Lesson: Don’t overcapitalise beyond neighborhood norms.

Also read: What is home renovation or remodeling?

Tips on Home Improvement

• Budget: Include a 10–15% contingency.
  
• Timing: Renovate when it’s right for your situation, not just the market.
  
• Trends: Avoid short-lived styles; choose timeless designs.
  
• Planning: Set clear timelines and expectations.
  
• Contractor: Check licenses, insurance, and reviews.
  
• Materials: Don’t cut corners on quality.
  
• Life Cycle: Plan for both current and future needs.
  

Knowing When NOT to Renovate

• Cost > Value Increase – Avoid if ROI is below 40% and you’re selling soon.
  
• Planning to Sell Soon – Stick to quick, cosmetic updates.
  
• Bad Market – Focus on maintenance, not major upgrades.
  

Conclusion

So, are home improvements worth it? The short answer: It depends. The long answer: they’re worth it when they improve your quality of life, fit your budget, and align with your property’s value potential. 

At LB Group, we believe good renovation starts with good advice. Whether you’re envisioning a dream kitchen, upgrading for energy efficiency, or making small but impactful changes, the right improvements done well, can transform not just your home, but how you feel living in it.

Frequently Asked Questions (FAQs)

1. How do I know if a home improvement will increase my home’s value?

The best way is to look at comparable homes in your area and see what features they have. If your home is missing something that similar properties offer—like a modern kitchen, updated bathrooms, or better curb appeal—it’s often worth addressing.

2. Are small renovations worth it before selling?

Yes. Even small upgrades like fresh paint, new cabinet handles, or modern light fixtures, can make a home feel updated without a huge spend. These “cosmetic” fixes often have a high return relative to cost because they improve first impressions.

3. Should I renovate before selling my home or let the buyer decide?

It depends on the condition of your home and your local market. In competitive markets, updated homes sell faster and at higher prices. In slower markets, it might be better to offer buyers a credit for renovations instead of doing them yourself.

4. How much should I spend on renovations?

A general guideline is to spend no more than 10–15% of your home’s value on a single renovation, especially if you plan to sell within a few years. Going beyond that may not be recouped in resale.

5. Which home improvements have the highest ROI?

Based on national data:

• Minor kitchen remodels
  
• Garage door replacement
  
• Entry door replacement
  
• Siding replacement
  
• Deck addition (wood or composite)
  These projects tend to recoup 60–90% of their costs on average.
  

6. Is DIY worth it for saving money?

DIY can save on labor costs, but it’s risky if you don’t have the right skills. Poor workmanship can lower your home’s value and even require costly re-dos. LB Group has seen many cases where a “weekend project” turned into a full professional rescue job.

7. Should I renovate for myself or for resale?

If you’re staying in your home for more than 5 years, prioritize what makes you happy and comfortable. If you’re selling soon, focus on widely appealing improvements that align with buyer expectations.