Smart renovations can help you build more equity and add more money to your pocket when you sell.

Some upgrades can give your home’s value a serious boost, while others might only make it look nice without adding much to your bottom line. Here are six renovations that tend to deliver the best return on investment when it comes to growing equity.

1. Kitchen Remodels 

The kitchen is often called the heart of the home, and it’s usually one of the first places buyers look. The good news is, you don’t need a full-blown luxury remodel to get a solid return. Updates that focus on practicality, like swapping out old countertops, freshening up the cabinets, or adding energy-efficient appliances, can typically return 40–50% of your investment.

For example, a $20,000 kitchen update can add around $9,000–$10,000 in resale value. Keep in mind, luxury finishes and custom upgrades often bring in less of a return since they often come down to personal preference, and buyers typically aren’t willing to pay extra for those details. 

2. Bathroom Upgrades 

Bathrooms are another high-impact space. Even small updates like new vanities, modern faucets, better lighting, and fresh tile can dramatically increase perceived value. A full remodel with updated plumbing, walk-in showers, or heated floors can push the ROI even higher, around 50-75%, especially in older homes where bathrooms may feel dated. 

That means a $10,000 renovation could boost your home’s value by about $5,000–$7,500.

3. Basement Finishing 

An unfinished basement often has untapped potential. Converting it into a functional living space, whether a family room, home office, or rental suite (with the necessary permits), can add valuable square footage. Finished basements are particularly appealing in competitive real estate markets where space is at a premium. 

Depending on the quality of the work and finishes, basement projects often deliver 70–75% ROI, meaning a $20,000 investment could translate to roughly $15,000 in added property value.

4. Energy-Efficient Improvements

Upgrades like new windows, improved insulation, and a modern HVAC system can make your home more comfortable all year and help cut down on utility bills. Today’s buyers are paying more attention to energy efficiency, so these changes can bring you quick savings now and boost your home’s value in the long run. Typical returns for energy-efficient improvements range between 50–70%, depending on the scope of work. Don’t forget to check out government rebates and programs that can significantly offset many of these costs. 

5. Curb Appeal Enhancements

First impressions matter. Exterior improvements such as landscaping, exterior painting, new siding, or a refreshed front door can increase a home’s perceived value before buyers even step inside. In many cases, these upgrades are relatively affordable but deliver an excellent ROI, especially closer to listing a property for sale, sometimes up to 70%. 

6. Adding Functional Living Space

Adding square footage almost always adds value. Whether it’s a deck for outdoor entertaining, a sunroom, or a full addition, increasing usable living space can significantly boost your home’s market value and your equity. Projects that expand a home’s footprint can return up to 70% of the investment, with higher returns for additions that blend seamlessly with the existing structure. Just be sure to check with your local bylaws and requirements as significant structural changes or additions often require specific permits. Not doing so, and having unauthorized additions or upgrades can negatively impact your resale prospects or insurance coverage. 

Ourboro’s Renovation Credit

When you invest in your home, you want that effort to be recognized. That’s where Ourboro’s Renovation Credit comes in. This program was created to allow homeowners to make investments to increase the home’s value, which is reflected in how that value is distributed when the home is sold. 

It’s not a cash payout you’ll receive right away, but a credit that is added to your share of the proceeds when you sell your property or buy out Ourboro’s share. 

Our team will review your project details to ensure the proposed work won’t negatively affect the value of your home and determine if it is eligible for a Renovation Credit. Once you’ve received approval from the Ourboro team you can go ahead with the planned renovations. 

How Renovation Credits Are Determined 

Every project is unique, so we look carefully at how much your renovations actually enhance your home’s value. Some of the factors we consider include: 

  • Type of improvement: Is it an upgrade, an addition, or a cosmetic change?
  • Impact: How likely is the renovation to impact the value of the home? 
  • Quality of work: Are the materials, craftsmanship, and overall execution completed to an appropriate standard?
  • Depreciation: How likely is the improvement to hold its value over time?

The greater the boost to your home’s marketability and long-term value, the greater your Renovation Credit will be.

Why This Matters for Homeowners 

Renovations can be expensive, and many homeowners hesitate to take on big projects for fear the costs won’t pay off. With Ourboro’s Renovation Credit Program, homeowners have a partner to help identify renovations that genuinely grow their equity.

By focusing on high-ROI improvements, from kitchen remodels to energy-efficient upgrades, Ourboro ensures that every dollar spent on renovations has the best chance of increasing your home’s value. That means when it’s time to sell, you keep more of the profits you’ve helped create.

Ready to Unlock Your Home’s Potential?

If you’re considering a renovation and want to make sure it’s the right investment, we’re here to help. Learn more about Ourboro’s Renovation Credit Program and see how we can work together to grow your home’s equity.