Home Upgrades That Are (And Aren't) Worth The Money
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For most of us, a home is the single largest asset you will ever own. So why in the name of shiplap would you go making major renovations or upgrades that have zero or worse negative ROI when it comes to your home's value? Now, before you start knocking down walls or installing that custom jacuzzi, let's talk about which upgrades could get you as much as 217% ROI and which ones are going to leave you out of the game.

out to dry. But first, pretend your chip gains on demo day and smash those like and subscribe buttons like they're knotty pine walls in a 1960s rancher. - If you listen closely, you can hear an episode of Fixer Upper. - Okay, let's start with the most common area of renovation in a home, the bathroom. A mid-range bathroom reno includes updating fixtures like sinks, showers, and commodes, installing new tile, changing the lighting, et cetera, all of which would cost approximately $25,000. And yeah, that's a lot of money, but I can understand why people wanna spend it.

I mean, a lot of complicated and important stuff happens in the bathroom. But keep in mind that the ROI for this comes in at about 74%. So if you spent $25,000 on bathroom upgrades, it could increase your home value by about $19,000. Could be worse, but that's $6,000 that you're just choosing to eat for a nicer bathroom.

So overall, mid-range bathroom upgrade, pretty solid investment. Entire bathroom additions, however, not so much, especially if it's on the high-end side. Adding a new bathroom with luxury features could cost you over $107,000. Plus, the ROI of that kind of addition is only 33%, meaning you basically flush $70,000 down your wall-hung smart toilet with touchless flush. So I'd say unless you've got money to burn, a high-end bathroom addition has the tendency to be a pretty solid...

Turds. Can I say turd? No. Okay. Edit that out.

But there is another Renault project that's even better than that mid-range bathroom we were talking about. And that's upgrades to the special place in your home where the magic happens and things can get spicy. Talking about the kitchen, obviously, I use a lot of cayenne. For my non-culture viewers, that's a spice. You should use them. There's more than just salt out there. And no, ranch dressing doesn't count. You can use it to drown your sadness, but don't call it a spice. I know what I have to do, but I don't know if I have the strength to do it.

A minor kitchen remodel costs on average $27,000. And that includes things like updating the cabinet fronts, changing out the hardware, replacing outdated countertops, and getting new appliances. But get this, the ROI on that is 96%, which is one of the best bangs for your buck as far as home upgrades go. Now, huge tiny caveat here. The more extensive or high-end your remodel, the lower your ROI drops, even as low as 38%.

So maybe cool your buns on the custom cabinetry and the Italian Carrera slab, because no matter how much you love that dramatic veining, it's not going to love you back financially. Moving on to the exterior of the home, let's talk about energy-efficient windows, the home upgrade unofficially sponsored by your fiscally conservative boomer dad. Dad. Dad.

Now, the idea here is that this upgrade reduces utility bills in the long run, but it's not cheap up front. The cost to replace about 10 windows with material and labor is around $21,000. But the ROI on this project is approximately 67%. So not

Awful, but not good either. So if you're hoping to recoup your investment via energy bill savings, just be content to sit pretty for a while because it could take a long time. Oh, and here's a riddle I can't figure out. Help me out. Over the last 15 years, the gap between the cost of energy efficient windows and the ROI has widened a fair amount, meaning you're not getting as much out of it as you used to. We're always talking about inflation hitting gas and eggs. No one's paying attention to vinyl windows. What doesn't big construction want us to know?

You know who can solve this? Trump. Get Elon on the phone. I know, I know he's in there. Yeah, I know you're in the bathroom. You're always in the bathroom. Don't act like you're... You always do this.

Classic. Okay, this next upgrade has a joy score of 10 out of 10, which scores how much joy it brought the homeowners. Wow. But before you get too excited, its ROI sits at just over 50%. Of course, I'm talking about the in-ground swimming pool, which could cost up to $90,000 or more to install, a.k.a. the price to buy your kids and all their grubby friends love. So grubby. Whoa!

- No, no! - Now you may be asking, if it's a 10 out of 10 in Joy, why is the ROI so low? Well, pool maintenance is a lot of work. You may be up for scooping soupy leaves out of the drain or paying some guy named Craig to do it, but not everyone is. Potential buyers could be turned off by the responsibility and ongoing cost, especially if you live in a place where it's only warm a few months out of the year. And while we're at it, let's talk about another great and easy way to get the most bang for your buck.

And that's by using a high-yield savings account like the one offered by online bank Laurel Road. You see, in a traditional savings account, your money grows about as fast as a snail wading through peanut butter. Crunchy, mind you. They have class. But with a high-yield savings account at Laurel Road, you get competitive interest rates that earn you way more. Plus, there's no minimum balance required to open an account.

Your deposits are FDIC-insured, and they'll never charge you monthly maintenance fees. So start making the most of your money by going to laurelroad.com/george or click the link in the description below. Okay, back to the exterior home upgrades that Uncle George can get behind, starting with wood decks, which is my third favorite decks after Span and Wynn.

And that's been today's Dad Joke. These types of projects cost about $17,000, but ROI at 83%. Another one coming in at 83% is installing an irrigation system. It only costs around $6,000, and you're likely to recoup $5,000 of that. And for me personally, I'd happily pay the $1,000 difference to avoid exposure to the great outdoors. This next project is estimated to recoup 100% of its cost and comes in at $9,000.

And this is for landscaping upgrades, like installing a flagstone walkway, adding built-in planters, and a generous sprinkle of flowering shrubs, deciduous trees, and of course, some bark mulch. All right, up next, this one comes in at around $4,500, but can add over $8,700 in value to your home, which is an ROI of 194%. And this one is the dark horse of home repairs.

garage door replacements. Let's face it, if it sounds like a donkey stuck under a Zamboni every time you roll that bad boy up, let's start saving up for a replacement. All right, the last one is simple but powerful. Basic lawn care service. It ROIs at 217%. So all of you middle-class fancy dads that treat your yard like your firstborn son should feel pretty justified right now. Experts say it costs around 400 bucks for six seasonal rounds of fertilizer and weed control, but the cost recouped, $900. That's amazing.

Okay, so we've covered the cost of some popular home upgrades, but let's be real. Most people just get swept away by the thrill of remodeling and Pinterest boards, and they choose projects they want without really thinking about the cost. Not to mention, they definitely don't factor in when, not if, the contractor runs into problems. They just slap that on the tab too. But there's one thing that can make all the difference when it comes to the cost of any home improvement project, and that is a plan. And by plan, I mean understanding the typical

costs, knowing what you're willing to spend, and sticking to a budget. So if you have a long list of home improvements you want to make, here's how I suggest narrowing that down. Number one, prioritize your projects. There's no sense in pressing the neighbors with some sick topiary features if your roof is about to collapse.

Prioritize the important structural parts of a home before any of the fun stuff. Number two, consider your goals. If you're going to stay in the home for a long time, choose house renovations that will improve the quality of your life the most. And if you're selling, choose improvements that attract buyers and get the best bang for your

Plus, once you sell, some of those home improvements could be tax deductible. Number three, renovate a little at a time. Most people can't afford something expensive like a kitchen remodel in one hit. So don't try. Set a timeline and do one or two things a month so that you can cash flow it without debt. Listen, if you go into remodeling and upgrades without a plan and priorities, that could lead to overspending or worse, going into debt. Because you probably noticed that many of these projects cost tens of thousands of dollars. And you should be paying for that with cash, with money you actually have.

You heard that right. Don't get suckered into thinking that financing a project is the more sophisticated way to go. Borrowing money to fix up your home is never a good idea, despite what your broke friends might tell you. And if you want to get organized and prepared to buy or sell a home one day, be sure to check out our free real estate home base. It's got everything you need from articles, tools, resources, start to finish guides, so that you can make this decision with confidence. I'll drop a link in the description.

in the description below. And as we learned, most home projects don't even earn back what it costs to get them done. So avoid lousy financing options like credit cards and home equity lines of credit like the freaking plague. If you want to find out why the HELOC is the homeowner's worst enemy, keep watching this next video or use the link in the description to watch. As always, thanks for watching. We'll see you next time.