5 Home Renovations That Offer a High Return

Written by Jeff Sands

Whether you are getting ready to list your home or simply want to add long-term value, the right renovation can make a real difference to your bottom line. And the smartest upgrades are not always the biggest, most expensive ones.

The truth is that some renovations pay you back handsomely, and others are just a way to spend money you will never see again. The difference usually comes down to how visible the project is, how many buyers it appeals to, and whether it fixes something that would otherwise scare people off.

To help you plan your next move, we have put together a list of five of the best ROI (return on investment) renovations we see paying off here in Peterborough and the Kawarthas.

If you’re ready to sell, our detailed Seller’s Guide is a tool you will want to keep handy. Download your copy today!

The 5 Best Renovations to Increase Home Value

1. A Fresh Coat of Paint

Paint is the single best bang for your buck in real estate, full stop! A few thousand dollars of neutral paint can make a home look cleaner, brighter, and more current in listing photos, which is where most buyers form their first impression.

It also covers a lot of sins: scuffed hallways, kids’ bedroom colours, and walls that have yellowed over the years all make a home feel old and not well taken care of. Bold colours and heavy wallpaper may suit your taste, but soft whites, warm greys, and greige tones let buyers picture their own furniture in the space.

Tip: Do not forget the trim, doors, and ceilings. These often make the biggest difference of all.

2. Update the Floors

Flooring is one of the first things buyers notice when they walk through the door, and old flooring, worn carpet or scratched, mismatched floors can make an otherwise lovely home feel dated.

The good news is that this is usually a manageable project and usually with a strong payback. The National Association of Realtors’ Remodeling Impact Report has repeatedly ranked refinishing hardwood floors among the projects most likely to recoup their full cost at resale.

If you already have hardwood hiding under old carpet, refinishing it is often the best move you can make. If not, durable and budget-friendly options like luxury vinyl plank give you a clean, consistent look that buyers love, especially in kitchens, bedrooms, and basements. Wherever you can, aim for one continuous flooring throughout the main level. It makes rooms feel larger and more connected!

3. Curb Appeal: Front Door, Garage Door, and Landscaping

Exterior projects tend to deliver some of the strongest returns and you do not need a landscape architect and tens of thousands of dollars to make a difference. A new or freshly painted front door, updated house numbers, a clean walkway, trimmed shrubs, fresh mulch, and a couple of planters by the steps go a long way.

Here in the Kawarthas, where so many homes sit on larger lots, a tidy driveway and well-kept lawn make a big impression on buyers pulling up for a showing.

Are you looking for more ways to make your house stand out and sell quickly? The posts below can help:

4. A Minor Kitchen and Bathroom Reset

Kitchens and bathrooms sell houses, but that does not mean you need to rip everything out. The goal here is to update, not remodel. A few affordable changes can make these rooms feel fresh and current for a fraction of the cost of a full renovation:

Paint or reface your cabinets and swap in new hardware
Replace dated light fixtures with brighter, modern ones
Install a new faucet in the kitchen and bathroom
Refresh caulking and grout

The lesson here is simple: the more you spend, the less of it tends to come back. A $90,000 custom kitchen in a home where comparable sales top out at $600,000 is a classic case of overcapitalizing, and we sadly see it all the time.

5. Fixing What a Home Inspector Will Flag

This one is not exciting, but it may be the most important renovation on the list. Buyers will forgive dated paint colours. They are far less forgiving of an aging roof, a furnace near the end of its life, drafty original windows, or old electrical and plumbing.

These items rarely add value in a dramatic way, BUT leaving them untouched can cost you dearly. A problem uncovered during a home inspection often leads to a price reduction that is larger than the cost of the repair, or worse, a deal that falls apart. In rural Peterborough County and the Kawarthas, that list also includes the well and septic system, which buyers and lenders look at very closely.

How Much Does a Finished Basement Add to Home Value?

Finishing a basement did not make our top five, but it comes up so often that it deserves an honourable mention. In most cases, a finished basement returns roughly 50% to 75% of what you spend on it. The 2025 Cost vs. Value Report places a basement remodel at about 71% recouped.

There are a few reasons the return is lower than you might expect. Appraisers and buyers generally value below-grade space at less per square foot than the main living areas, and finishing a basement is a big project, often running well into five figures.

That said, a finished basement can absolutely be worth it if you plan to enjoy the space yourself for a few years, or if it adds something buyers in your area are actively looking for, like an extra bedroom with a proper egress window, a second bathroom, or a family room.

A legal secondary suite can add even more appeal for buyers looking for rental income or a multigenerational setup. Just be sure any basement work is done with the proper permits, since unpermitted projects can raise red flags with buyers, lenders, and insurers.

Before selling, it helps to have a clear understanding about the entire process, including what goes on behind the scenes. The posts below will fill you in:

What “Return on Investment” Really Means for a Renovation

Return on investment (ROI) is simply how much of your renovation cost you get back in added sale price. If you spend $10,000 and your home sells for $8,000 more than it would have otherwise, you have recouped 80%. If it sells for $12,000 more, you have recouped 120%, which means the project more than paid for itself.

Truth is: most renovations come in under 100%. In other words, you usually do not get back every dollar you put in. That does not mean a renovation was a mistake and a waste of money. It just means the value of a project is more than what shows up on the final sale price.

A Higher Sale Price Is Only Part of the Picture

When we talk about renovations with our sellers, we look at return in a few different ways:

Sale price: How much more a buyer is willing to pay because of the update.
Speed of sale: A home that shows well tends to sell faster, which means fewer months of carrying costs like your mortgage, property taxes, utilities, and insurance.
Fewer price reductions: Homes that look tired or need obvious work are more likely to sit, and sitting often leads to a price drop that costs far more than the update would have.
Stronger offers: A move-in ready home attracts more buyers, and more buyers means a better chance of clean offers with fewer conditions.

In other words, a $5,000 flooring update might only add $5,000 to your sale price on paper. But if it helps your home sell in two weeks instead of two months, the real return is much higher.

What If You Are Not Selling Soon?

If you plan to stay in your home for years, ROI matters a little less. A renovation that makes your daily life better has real value, even if a future buyer will not pay you back for every dollar. The key is to go in with your eyes open. Renovate for yourself when you are staying, and renovate for the buyer when you are selling.

Renovations That Usually Do Not Pay Off

For balance, a few projects consistently return far less than they cost. A full kitchen renovation, swimming pools, high-end luxury finishes, major additions, and highly personalized spaces (think a dedicated wine cellar or a bold, custom colour scheme) tend to appeal to a narrow group of buyers.

If you love these projects and will enjoy them for years, go for it. Just do not count on getting your money back when you sell.

Before You Think of Renovating

The best renovation for your home depends on your house, your neighbourhood, your timeline, your situation, and your budget.

Before you spend a dollar, it is worth getting a clear picture of what comparable homes near you are selling for and what buyers in your price range expect. That way you can put your money into the projects that really move the needle and skip the ones that do not.

Our team handles decluttering, repairs, staging, and photography in house, so we can also help you prioritize what to tackle and what to leave alone.

Wondering which renovations will add the most value to your home before you sell? Our Peterborough real estate agents are here to support you through whatever challenge you are facing. Reach out to team@jeffandkatie.ca or call 705-243-9797 to start the conversation today!