What Types of Renovations Increase a Home's Value the Most?
6/25/2025
When planning a home renovation, it's natural to dream of beautiful new spaces. But beyond personal enjoyment, many homeowners also want to know which projects will genuinely increase their property's market value. Not all renovations offer the same return on investment (ROI), so focusing on the right updates can make a significant difference when it's time to sell. Prioritizing projects that appeal to a wide range of buyers and improve functionality, efficiency, or curb appeal often yields the best returns.
Here are some types of renovations that typically increase a home's value the most:
- Minor Kitchen Remodel: You don't need a full gut job. Updating cabinet fronts, replacing old countertops (think quartz or granite), upgrading appliances, and improving lighting can offer an excellent ROI, often recouping 70-80% of the cost. Kitchens are central to buyer decisions.
- Bathroom Remodel (Mid-range): Similar to kitchens, updated bathrooms are a big draw. Focus on modernizing fixtures, replacing outdated tiles, improving ventilation, and perhaps a new vanity. A mid-range bathroom remodel can recoup 60-70% of its cost.
- Adding a Bathroom: If your home only has one bathroom or could benefit from an additional half-bath, this can significantly boost value, especially in older homes. The convenience of an extra bathroom is highly prized by buyers.
- Basement Finishing: Transforming an unfinished basement into usable living space (e.g., a family room, extra bedroom, or home office) adds significant square footage and functionality, often with a strong ROI. Ensure proper insulation, waterproofing, and egress.
- Deck or Patio Addition: Outdoor living spaces are increasingly important to buyers. Adding a new deck or patio creates an inviting area for entertaining and relaxation, typically recouping a good portion of its cost.
- Curb Appeal Enhancements (Exterior): First impressions matter! Projects like a new front door, garage door replacement, fresh exterior paint, well-maintained landscaping, or even a new roof can dramatically improve curb appeal and signal a well-cared-for home. These often have some of the highest ROIs.
- Energy-Efficient Upgrades: While not always flashy, replacing old windows with energy-efficient ones, upgrading insulation, or installing a new HVAC system can significantly reduce utility bills. Buyers are often willing to pay more for a home with lower ongoing costs and a reduced environmental footprint.
While it's exciting to personalize your home, focusing on renovations that universally appeal to buyers and address common functional needs tends to offer the best bang for your buck. Before starting any major project, research local market trends and consider consulting with a real estate agent to understand which improvements are most valued in your specific area.