Home Improvements That Add the Most Value
Which renovations recoup the most at resale, which rarely do, and how to prioritize upgrades whether you're selling soon or staying put.
Not all renovations are created equal. Some projects return much of their cost when you sell; others mostly benefit the person living there. Here's how to think about improvements depending on your plans.
Projects that tend to recoup the most
Year after year, the annual Cost vs. Value report published by Remodeling magazine (Zonda) finds that smaller exterior projects generally recover a higher percentage of their cost at resale than large interior remodels. Projects that commonly rank near the top include:
- Garage door replacement
- Entry door replacement (steel)
- Manufactured stone veneer
- Minor kitchen remodel (refacing cabinets, new counters, sink, and appliances rather than a full gut)
- Siding replacement
Exact percentages vary by region and year, so check the latest report for your area.
Projects that usually recoup less
- Upscale kitchen or bath remodels: luxury finishes rarely pay for themselves at resale.
- Swimming pools: some buyers see them as maintenance and liability.
- Highly personalized features: unusual layouts, bold finishes, or niche rooms.
- Additions: valuable for living, but expensive relative to resale gain.
Low-cost improvements with outsized impact
- Fresh neutral interior paint
- Updated light fixtures and cabinet hardware
- Landscaping clean-up and fresh mulch
- Refinishing hardwood floors
- Replacing dated or damaged carpet
Don't neglect the boring stuff
A new roof, updated electrical panel, or modern HVAC system may not wow buyers in photos, but problems with these systems show up in inspections and can derail deals. Maintenance protects value even when it doesn't visibly add it.
If you're staying put
If you plan to live in your home for many years, renovate for your own enjoyment and function, within reason for your neighborhood. Avoid becoming the most expensive house on the block by a wide margin, which makes it harder to recoup costs later.
Energy efficiency
Insulation, air sealing, heat pumps, and efficient windows can lower utility bills. Federal tax credits for some energy-efficient improvements have existed in recent years, but eligibility rules and deadlines change; confirm current rules with the IRS or a tax professional before counting on a credit.
This article is for general educational purposes and is not financial, legal, or tax advice. See our disclaimer.