What Upgrades Increase Home Value? 25 High-ROI Improvements Buyers Love

Upgrades that enhance outdoor living

10. Add a deck or patio

A deck or patio is a common staple of a home’s backyard living area. It’s a place to dine, drink, entertain, or work outdoors for a few hours. A backyard deck adds over $7,000 in resale value on average, and you can build a deck for around $3,600 and $10,000. So, it’s likely that you can break even or even see a positive ROI on this project.

11. Put in a fire pit or outdoor fireplace

Regarding what features buyers like to see in an outdoor space, 17% of top real estate agents HomeLight surveyed cited a fire pit as one of their top priorities. This provides a cozy setup for friends and family to gather even when the evenings get chillier.

12. Go for the pool and hot tub combo

On the fence about installing a pool? If you can get on a pool-building company’s busy schedule, the ROI of this project has increased in the past couple of years which may help you justify the cost.

A pool may cost significantly more than around $30,000 to build, however, so you’ll need to weigh your individual cost and personal enjoyment of this feature against the added resale value in your market.

13. Dress up your front porch

Front porches have come back in vogue since the pandemic began, with rocking chairs or other cozy seating offering a safe way to visit with neighbors or have a quiet cup of coffee. Add a pair of Shine Company Vermont Porch Rockers from Kohl’s ($269 each) to show buyers how a front porch could be used.

14. Cook under the stars with an outdoor kitchen

Once viewed as an add-on reserved for luxury homes, these days, it appears everyone wants an outdoor kitchen. In addition to a built-in grill, outdoor kitchens often include features such as cabinets, a bar, a sink, standard kitchen appliances, and sometimes a flat-screen TV. They can be lavish or basic, depending on budget.

Upgrades that add style for less in key rooms

Agents say that kitchens and bathrooms help sell houses. Give potential buyers a sigh of relief instead of counting dollar signs by doing some functional updates in these rooms.

15. Swap out your fixtures in the kitchen and bathrooms

New faucets, drawer knobs, and pulls in a matching style give a room a modern, cohesive look — an inexpensive upgrade that can have a big impact on buyers because everything feels new.

Although trends vary nationwide, try brushed nickel and matte-type stainless-steel fixtures for a contemporary style, or oil-rubbed bronze if your home has more classic lines.

16. Do a minor remodel rather than an upscale one

A minor remodel of a 200-square-foot kitchen, including replacing cabinet fronts, countertops, and appliances, costs about $26,790 but recoups about $22,963 at resale, according to Remodeling Magazine’s 2023 Cost vs. Value report. That’s about 85% ROI compared to recouping about 41.8% of expenses for a major kitchen overhaul.

Granite countertops often fetch a higher asking price, says Baum. On average, granite countertops cost about $3,250, with granite tiles (at $5 to $15 per square foot) another option.

Likewise, a midrange remodel of a 5×7-foot bathroom for $24,606 recoups about 66.7% of its cost at resale, compared to an upscale bathroom overhaul (36.7%).

Save even more money by refreshing your cabinetry with paint. “If they have old cabinets that can be painted, I say paint them,” Baum says.

17. Refinish your hardwood floors, or revamp them with luxury vinyl planks

The cost recouped on updated flooring depends on your house’s price range and current condition.

“Generally, if I get to a higher-end home and the carpets are decent, I don’t advise them to replace (the carpets) because I know that someone’s going to come in and replace it with hardwood,” Russell says.

If the seller doesn’t want to take on that cost, some buyers and sellers will negotiate a flooring allowance.

However, if you have pets or your flooring has seen better days, a few thousand dollars to replace or revive it is well spent. Refinishing hardwood floors costs an average of $1,875, or roughly $3 to $8 per square foot, for instance. (Incidentally, you can clean your carpet for a flat-room rate of $75 to $125.)

Baum says that more buyers in her area like the look of luxury vinyl planks, or LVP, in gray or espresso. These run about $5 per square foot but are less expensive and sturdier than hardwood. “It’s so durable. It looks great, and it cleans up easily,” she said.

18. Paint in a neutral palette

Light, neutral wall colors make for a good palette for resale because buyers can imagine their belongings in the space, our experts say.

They also help your home look its best in online photos and listings. “Paint is the cheapest thing you can do, and it brings such value. It brings people in the door,” Baum says.

“When every room is a different color and you look at it online, it looks like you’re going through an Easter egg hunt. When you have all the same color, each picture flows into the next one.”

Need color inspiration? Consult our guide on the best paint colors for selling a house — which features recommendations for our favorites grays, beiges, greiges, and whites.

Upgrades that reduce maintenance hassles

If your house is 10 to 15 years old, some big-ticket items that buyers might have to repair or replace in the next few years could make them look elsewhere. Make a few repairs now to help net your best-asking price.

19. Replace an aging HVAC

Buyers often ask when the HVAC was installed or replaced, as well as if the home has a tankless hot water heater, Russell says.

The average HVAC replacement costs about $7,000, which includes a new unit, installation, removal, and disposal, but this varies depending on the size and system. At the least, look into a multi-zone HVAC system, which ranks among buyers’ top five most-wanted technology features, the NAHB says.

20. Install new siding

If your home’s siding looks run-down, or if you need to replace it because the brand you have has been in the news because of durability or mold problems, you’re facing a decent ROI. New fiber-cement or vinyl siding recoups about 94.7% of its cost at resale.

Upgrades that make your home more efficient

More buyers are willing to pay more for a home if they think it will save them in annual utility costs, the NAHB says. 57% would pay $5,000 or more, on top of the asking price, to save $1,000 a year in utility costs.

21. Replace your old toilets with low-flow fixtures

Toilet technology has improved since 1994, when federal law restricted toilet tanks to 1.6 gallons per flush (GPF).

Low-flow toilets now move less water more forcefully into the bowl with each flush. Try the Glacier Bay 1.28 GPF High-Efficiency Single Flush round toilet for about $94 or Kohler’s Cimarron 360 Complete Comfort Height 1.28 GPF Single Flush elongated toilet for about $279.

22. Put in energy-efficient appliances and windows

Appliances, windows, and lighting with the Energy Star symbol, the federal certification that they reduce energy use without sacrificing performance, ranked either as essential or desirable home features among more than 90% of all home buyers in the NAHB study.

Try appliances recommended by ENERGY STAR certified, including dryers and washing machines, dishwashers, and refrigerators, among others.

As for windows, the government’s minimum energy-efficiency standards for new windows vary nationwide based on your climate zone.

Check out this U.S. Department of Energy online guide to shop for your region’s standards for stopping heat flow, blocking the sun’s heat, and allowing a certain amount of light to enter.

You are likely to recoup an estimated 80% of window replacement costs at resale, according to a survey of HomeLight agents.

Upgrades that cater to your area’s trends and demographics

Depending on your neighborhood and your price point, certain features appeal to different demographics and geography.

For instance, millennials continue to represent the largest group of homebuyers, according to the National Association of Realtors. Some of their top wants involve smart home technology, such as keyless entry and high-end Wi-Fi access.

Buyers nearing retirement, on the other hand, like convenience and features that allow for aging in place. Buyers told the NAHB that their most-wanted accessibility features were:

• A full bath on the main level (80%)
• Doorways at least three feet wide (77%)
• Hallways at least four feet wide (73%)
• Non-slip floors (65%)
• An entrance without steps (64%)

Baum said because of the winter weather in her area, a paved driveway puts homes ahead of the competition. Likewise, having an outbuilding or detached garage for farm equipment, extra cars, motorcycles, or other vehicles is desirable.

Depending on the types of buyers dominating your market, consider the following upgrades:

23. Make your laundry room more accessible

A laundry room remains the top feature that buyers want (at 87%), according to the NAHB — and buyers often prefer not using the stairs to do laundry.

“They want the laundry on the second floor where the bedrooms are,” Baum says.

Some homes above $200,000 in Russell’s area have a larger laundry room with a drop zone for children’s backpacks and shoes or connect the laundry room to the master bedroom instead of the kitchen.

“You’re able to access your laundry room from your master bedroom, but you also can access it from your hallway,” she says.

24. Turn your shower into a walk-in

Families with children still like a bathtub, but more people prefer walk-in showers, Russell says.

A prefab walk-in shower kit costs between $800 and $2,500, based on quality and size; professional installation is extra. Consider MAAX’s Mediterranean III Corner Shower Kit with a center drain and sliding door or Ella’s Liberty Shower Stall with grab bars and a molded seat.

25. Install smart features

Like energy-efficient appliances, programmable thermostats, security cameras, video doorbells, and wireless home security systems have broad appeal, with higher-income buyers appreciating these more often, the NAHB says.

A smart thermostat can adjust your house’s energy consumption depending on the latest gas or electricity prices, or even allow you to phone in instructions such as turning on the furnace before you get home. Prices range from $150 to $400 or more, plus installation from a trained electrician or HVAC contractor. Try the Emerson or Aprilaire 8600.

What adds value to a home?

As you look around your home and wonder which updates are worth making, consider whether the project would help a buyer see your place as somewhere they want to live. Are certain rooms of the home dated by decades? Maybe you focus there.

Do you lack the modern features and amenities that a remote professional would need to balance work, family, and relaxation? Maybe it’s time to add a patio or convert a spacious closet into a home office.

Will the update add convenience to daily life or bring joy with the beauty of fresh and modern materials? Then it’s probably a safe bet, but the cost recouped will depend on your market and picking the right styles. When in doubt, run your renovation plans by a top-rated local real estate professional who can tell you what’s trending in the area.

“Some buyers just don’t have the vision to see what it could be,” Russell says, but even little things can help buyers say, “You know what? We don’t have to do anything to this house. It’s perfect. Let’s go in at a strong price.”

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