When Making Home Improvements, What Should You Keep in Mind to Get the Best Resale Value?
Make sure you know what kind of return you’ll get on your home remodeling investment before you commit to a new project
When planning home improvements, you want maximum bang for your buck, and you don’t want to invest more than you’ll recoup. Every market and neighborhood is different, but certain projects reliably boost resale value. Below are expert tips to help you choose wisely, whether you plan to sell next year or stay put for a decade.
Work With a Realtor If You Plan to Sell Soon
If you’re listing within the next 12 months, consult an experienced Realtor before starting any major remodel. They can assess local buyer preferences, recommend which updates deliver the highest return and even advise against projects that won’t pay off in your neighborhood. Delay fresh paint or staging until closer to listing to avoid last-minute touch-ups.
Don’t Over-Improve for Your Area
High-end upgrades can backfire if they price your home above comparable properties. A $400K neighborhood won’t support a $600K renovation. Aim to match, or slightly exceed—average finishes in your area rather than outspending the competition.
Modest Materials Often Match Buyer Expectations
Prospective buyers notice “new” more than they notice brand names. Opt for midrange granite or quartz counters rather than ultra-premium slabs. A modern hardwood look-alike laminate can deliver the same curb appeal at a fraction of the cost. Quality matters, but you don’t need top-tier finishes to impress.
Kitchens and Bathrooms Yield the Highest Returns
National studies consistently show that:
- Minor kitchen remodels average a 94–102% cost recovery.
- Adding or updating a master bathroom can recoup up to 92% of costs.
Focus cosmetic updates, new cabinets, fixtures, lighting—rather than gutting and rebuilding unless your home is decades out of date.
Small Projects Add Up
You don’t need a multi-thousand-dollar overhaul to increase appeal. Fresh paint, new hardware, updated light fixtures and landscaping can deliver 5–10% boosts in perceived value at minimal expense.
Avoid Hidden Cost Pitfalls
Major renovations often unearth surprises, code upgrades, water damage or structural repairs—that inflate budgets. Always budget a 15–20% contingency and get multiple estimates to benchmark pricing.
DIY vs. Professional Labor
DIY can save thousands, but only if you’re skilled and licensed when required. Incorrect plumbing or electrical work can stall a sale if buyers’ inspectors flag code violations.
Know the Market’s Seasonality
In hot markets with low inventory, simple curb-appeal upgrades, fresh siding paint, new garage-door hardware—can command premiums. In slower markets, price-based competition matters more, so keep renovation costs below the neighborhood average.
Project Cost vs. Average Return
Use the chart below as a general guide. Your actual costs and returns will vary by region, home condition and contractor rates.
| Project | Average Cost | Typical Return |
|---|---|---|
| Minor Kitchen Remodel | $2,000–$8,500 | 94–102% |
| Major Kitchen Remodel | $9,000–$25,000 | Up to 90% |
| Add Bathroom | $5,000–$13,000 | Up to 92% |
| Replace HVAC System | $2,000–$4,900 | 60–100% |
| Tankless Water Heater | $1,400–$3,500 | 8–40% |
| Build Deck | $6,000 | Up to 73% |
| Add Fireplace | $1,500–$3,000 | Up to 75% |
| Window Replacement | $6,000 | 68–74% |
| Landscaping | $1,500–$15,000 | 30–60% |
| Finished Basement | $3,000–$7,000 | Up to 15% |
Final Takeaway
Prioritize kitchen and bath updates, use cost-effective materials, plan for hidden expenses and always align projects to neighborhood standards. Even small cosmetic refreshes can deliver outsized returns and help your home stand out, without breaking your renovation budget.