Home improvements that could boost your home equity

Certain home improvements may increase your home equity if they add enough value to your home.


If you’re a home owner, your home can provide a cost-effective source of funding for any number of purposes, from paying off debt to cover a large expense. That’s thanks to something known as home equity, or how much value you’ve built up in your home. You can pull from this equity in a number of waysfrom home equity loans and HELOCs to cash-out refinancing and reverse mortgages.

The more equity you have in your home, the more you can potential borrows. Home equity is based on two factors: How much you currently owe to your home and how much your home is worth. As a result, certain home improvements can increase your home equity if they add enough value to your home.

Whether you choose to DIY a cheap project or hire a pro for a pricier one, you want to make sure you’ll get the biggest return on your investment. So, we reviewed recommendations from the National Association of REALTORS, HGTV, Better Homes & Gardens and Zillow to compile a list of improvements that deliver the most bang for your buck.

Learn more about your home equity options here.

Home improvements that could boost your home equity

These are among the top home improvements that can increase your home’s value and, as a result, your equity.

Minor home improvements

You don’t need to shell out a ton of money to make your home worth more. Plenty of inexpensive home improvements have significant ROI, and you may be able to knock them out yourself over a weekend. They include:

  • Fresh paint
  • New lighting fixtures
  • Kitchen updates (such as repainting cabinets, replacing cabinet and drawer pulls and installing a new backsplash)
  • Bathroom updates (such as fresh caulk, new fixtures like a shower head or mirror and added storage)
  • Adding landscaping and curb appeal (such as repainting your front door)

Check current home equity rates now to see how much you may be eligible to borrow.

Major home improvements

If your budget is bigger, these major improvements can really add value to your home. Just be sure to consult a professional for any projects you aren’t qualified to take on yourself. A job done poorly won’t help your bottom line.

  • A new addition (such as a family room, extra bedroom or half-bath)
  • A full kitchen or bathroom remodel (such as rearranging the footprint and installing brand-new appliances)
  • An attic or basement conversion
  • An HVAC update
  • Flooring upgrades (refinishing hardwood or installing new flooring)
  • Adding outdoor living space (such as a deck, patio or porch)
  • Window replacement
  • Replacement siding

The bottom line

It’s also important to know which home improvements have the lowest ROI. Adding a swimming pool, making high-end upgrades and expanding a garage can be among the worst projects to take on if your goal is to build home equity. If you plan on staying in the house for a long time and these increase your enjoyment of the home, that’s a different story. But if you’re looking to get the most out of your home equitystick to the projects on this list.

Which home equity option is best for you? Start your search by checking out current rates here.