If you’ve ever considered remodeling your home, one of the first questions on your mind is likely: Will this increase my home’s value? The short answer is yes, but the extent of that increase depends on the type of remodel, the quality of the work, your neighborhood, and the current real estate market. In this guide, we’ll break down how home remodeling can impact your property value and help you make smarter investment decisions.
What Determines Home Value?
Before diving into remodels, it’s essential to understand what makes a home valuable. Home value is influenced by several key factors:
- Location: No remodel can fully overcome a less desirable neighborhood.
- Size and Layout: The number of bedrooms, bathrooms, and overall square footage are critical.
- Condition and Age: Newer or well-maintained homes are typically more attractive.
- Market Conditions: Local housing demand, interest rates, and economic trends affect value.
- Comparable Properties: Appraisers often compare your home to similar homes nearby.
A remodel adds value when it improves your home’s appeal relative to these factors.
Top Remodels That Increase Home Value
While any home improvement can enhance your living experience, some remodels deliver a higher return on investment (ROI). Here’s a breakdown of remodels that are proven to boost resale value:
- Kitchen Remodels
The kitchen is often the centerpiece of a home, and updates here have a major impact on buyer appeal. Common kitchen upgrades include:
- Replacing countertops with granite, quartz, or high-quality laminate
- Refacing or replacing cabinets
- Installing energy-efficient appliances
- Updating lighting, fixtures, and hardware
- Adding a functional kitchen island
ROI Insight: According to Remodeling Magazine’s 2024 Cost vs. Value Report, minor kitchen remodels can recoup approximately 77–81% of the project cost at resale. Major renovations may yield slightly lower percentages but still add significant value.
- Bathroom Remodels
Bathrooms are another high-impact area. Even minor updates like new fixtures, vanities, or tile can make a difference, while full remodels, including new showers, tubs, and flooring, can dramatically enhance your home’s appeal.
ROI Insight: Mid-range bathroom remodels typically return 70–75% of their cost, making them smart investments for both resale and personal enjoyment.
- Adding Square Footage
Increasing your home’s usable space often yields one of the highest ROIs. Ways to add square footage include:
- Finishing a basement or attic
- Adding an extra bedroom or bathroom
- Constructing a sunroom or extending living areas
ROI Insight: Additions that align with neighborhood standards generally recoup 60–80% of their cost.
- Energy-Efficient Upgrades
Energy-efficient remodels appeal to eco-conscious buyers and can make your home more competitive:
- Installing double or triple-pane windows
- Upgrading insulation
- Updating HVAC systems
- Adding solar panels (if applicable)
ROI Insight: While energy-efficient upgrades may not always offer immediate financial returns, they enhance your home’s marketability and reduce utility costs, which buyers increasingly value.
- Exterior Improvements
First impressions matter. Curb appeal can influence a buyer’s perception and increase perceived value. Consider:
- Painting or re-siding the exterior
- Replacing or repairing roofing
- Upgrading the front door or porch
- Landscaping and hardscaping
ROI Insight: Simple exterior improvements often deliver high ROI. For example, a new front door may return over 90% of its cost, and landscaping upgrades can add substantial value relative to investment.
Quality Matters: Don’t Cut Corners
A remodel’s impact on value isn’t just about what you do, it’s about how well you do it. Poor craftsmanship or low-quality materials can reduce value or deter buyers. To maximize your ROI:
- Stick to classic, timeless designs over overly trendy styles
- Ensure permits are obtained when necessary
- Focus on durability and functionality, not just aesthetics
High-quality work signals to buyers that your home is well-maintained, which translates into higher perceived value.
Understanding Diminishing Returns
It’s important to know that spending more doesn’t always equal more value. Most remodels recoup 60–80% of their cost. Over-improving your home beyond neighborhood standards may not increase resale value proportionally. For example, a luxury kitchen in a modest neighborhood may not yield the same ROI as in an upscale area.
Timing Matters
The real estate market plays a role in remodel ROI. In a seller’s market, updates may add more perceived value because buyers have limited options. In a slower market, even high-quality remodels may not recoup as much.
Balancing Value With Lifestyle
Not every remodel needs to be purely financial. Many homeowners remodel for comfort and lifestyle enhancements:
- A spa-like master bathroom
- A home office or creative space
- A backyard patio for entertaining
Even if these remodels don’t offer the highest ROI, they significantly enhance your quality of life. Smart remodeling balances both personal enjoyment and resale potential.
Working With Professionals
Remodeling can be complex, and mistakes can be costly. Hiring skilled contractors, designers, and real estate professionals ensures:
- Projects are completed efficiently and professionally
- Remodels align with buyer expectations in your area
- You avoid common pitfalls that reduce ROI
Final Thoughts: Remodels Can Boost Your Home’s Value
A well-planned remodel can increase your home’s market value, but success depends on:
- Choosing the right remodel for your neighborhood and market
- Using high-quality materials and professional craftsmanship
- Balancing cost, personal enjoyment, and resale potential
High ROI Remodels: Kitchen and bathroom updates, exterior improvements, and strategic additions
Moderate ROI Remodels: Energy-efficient upgrades, luxury finishes, custom features
Ultimately, remodeling is an investment in both your lifestyle and your home’s value. By carefully considering your options and working with trusted professionals, you can ensure your remodel pays off, both now and when it’s time to sell.
If you would like to make the investment and increase your home value, contact us today to schedule your free consultation.
