Return on investment

A general measure of what you got back compared to what you put in. Used loosely for a lot of things in real estate. More specific metrics like cap rate and cash-on-cash are usually more useful.

Also called ROI · Investment terms · Updated September 2026

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Where this comes up: getting ready

This word belongs to the getting ready part of a sale. Here is what that part holds, in order.

Set up your closing teamDecide if you want an agent · Find out who runs closings here
Set your priceLook at what nearby homes sold for · Check some online values
Prep and photograph the homeClear out and put things away · Fresh paint and a deep clean
Gather details and disclosuresWrite down the basics · Note the land and what stays

Your Room keeps this list for your own sale, with your dates on it.

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Part 1 of 4

Why a seller cares

ROI is the loose word for what you got back against what you put in, and sellers use it about pre-listing work. A $6,000 refresh that adds $15,000 at sale has an ROI most improvements never reach.

Part 2 of 4

A simple example

You spend $6,000 on paint, fixtures and landscaping, and the home sells for about $15,000 more than the comps for un-refreshed homes.

Return on investment: a simple example
The spend	A typical return at sale
Paint, fixtures, curb appeal	More than it cost
A new kitchen right before selling	Often less than it cost
A new roof the inspection would have flagged	About break-even, and a smoother sale

ROI on pre-listing work is highest on the cheap, visible things.

Part 3 of 4

What people get wrong

That the cost of a renovation comes back at sale. Most return a fraction; the exceptions are small and cosmetic.

Part 4 of 4 · where to read next

Where it appears in the sale

Getting ready to sellBefore you list · the stretch of the sale this word belongs to

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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