Every homeowner takes pride in their property and wants it to look and function at its very best. Dreaming of a cozy place to hang out and soak in some entertainment, new kitchen renovations, or putting in a pool, it's easy to get caught up in the excitement. However, the National Association of Realtors' 2015 Remodeling Impact Report reveals that some home improvement projects perform far better than others. While it's easy to think that any improvement will add to the overall value of a home, that's simply not the case. Sure, some improvements will pay off at resale because they make the property more appealing to buyers, but, there are certain ones to avoid.

Top Return-on-Investment Renovations

It's important to understand that very few home improvements have a high ROI or return on investment. In fact, the majority will not recapture their cost and some are an outright waste of time and money. For instance, a family room addition, costs on-average, $85,700, but it returns $53,600 or 63 percent, at resale. Adding another bath might seem like it's a great investment in a property, but performs poorly, averaging nearly $41,000 but brings back under $22,000, or, a modest 53 percent.

Will this renovation pay off? That's the question on the mind of every homeowner who's thinking about undertaking a project to bolster their home's resale value. And in today's tight housing market, the answer to that question may even determine whether the house will sell. Fortunately for homeowners, a number of remodeling projects offer the potential for a high return on investment (ROI). According to Remodeling magazine's annual cost vs. value report, some of the best renovations are those done on the exterior of the home—siding, window, and door replacements—because they immediately improve a home's curb appeal. --U.S. News and World Report

An upscale master suite addition averages more than $232,000, but returns only 53 percent, approximately $122,000. A home office remodel, which averages nearly $29,000 will only bring back just over $13,000 or 46 percent. Those numbers certainly don't inspire confidence, but, there are home improvements that do perform very well. In the NAR's 2015 Remodeling Impact Report, real estate professionals revealed the projects which do payoff. The following are the top home improvements which yield the highest percentage return without accounting for project cost:

  1. New roof. Buyers absolutely love new roofs because these are such a large expense and a major component of a home. A new roof will return an eye-popping 105 percent, one of very few renovations actually exceeding cost.
  2. Refinished hardwood floors. Hardwood is a great selling feature because of its aesthetics and durability. If you refinish a hardwood floor, you can expect to get your money back with a 100 percent return. New wood flooring also does well, with a return of 91 percent.
  3. Upgraded insulation. While this isn't something that most homeowners think about, it's definitely valuable to buyers because it means decreased utility bills from less energy use. Upgraded insulation is worth 95 percent of its cost to buyers, according to the NAR's report.
  4. New garage door. Though not exciting, a new garage door does quite well at resale. In fact, it brings back an impressive 87 percent. This is probably because it improves the home's exterior and represents better security.
  5. New vinyl siding and windows. Two other exterior improvements which have a good return on investment are new vinyl siding and new vinyl windows. These return 83 percent and 80 percent, respectively and do much to improve exterior aesthetics. In addition new windows means more energy efficient, a big plus for buyers.