{"id":26855,"date":"2021-09-30T09:11:18","date_gmt":"2021-09-30T16:11:18","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=26855"},"modified":"2026-03-03T05:55:47","modified_gmt":"2026-03-03T13:55:47","slug":"buyer-does-remodeling-increase-home-value","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-does-remodeling-increase-home-value\/","title":{"rendered":"Does Remodeling Increase Home Value? Yes … But Here\u2019s Why You Probably Won\u2019t Get Every Dollar Back"},"content":{"rendered":"

It seems logical: For every dollar you put into your home \u2014 the biggest investment many people will make in a lifetime \u2014\u00a0you\u2019d expect to get that dollar back when you sell, right? Not exactly.<\/p>\n

Yes, remodeling does increase your home value<\/a> \u2014 but it isn\u2019t a dollar-for-dollar trade. In some cases, you might see a fraction of your investment back \u2014\u00a0and in other cases, you might get more<\/i> than a dollar back for every one you spend.<\/p>\n

\u201cIt really depends on what you\u2019re doing,\u201d says Elizabeth Olcott<\/a>, a top-selling agent in Napa<\/a>, California, who works with 86% more single family homes than the average Napa agent. \u201cIn my experience, you actually get better than one-to-one. In my network around the country, we\u2019re seeing people getting more than 100% return.\u201d<\/p>\n

Backed by a range of experts, we\u2019ve unpacked what you need to know about how your remodeling investment increases your home\u2019s value.<\/p>\n

How much does remodeling increase home value<\/a>?<\/h2>\n

You can minimally expect that most home improvements will get you somewhere between 50% and 75% return on investment (ROI), according to the Remodeling Cost vs. Value Report<\/a>. That said, pros around the country report seeing larger ROIs, too.<\/p>\n

The ROI depends on many factors, including the type of improvement you\u2019re making, where you live, neighborhood comps, and the local real estate market.<\/p>\n

Nationwide, a garage door replacement has the highest average yield of any project, with an average job cost of $3,907 and an average resale value of $3,663, for a total of 93.8% of the cost recouped.<\/p>\n

Manufactured stone veneer (92.1%), a minor mid-range kitchen remodel (72.2%), and window replacement (vinyl or wood, both nearing 70% percent range) also rank high on ROI for home improvements.<\/p>\n

At the bottom of the list are bathroom additions, which might fetch you about 50% ROI on resale, and a high-end main suite addition, which could fetch even less.<\/p>\n

But remember that regional \u2014 and local \u2014 variables can (and should) affect remodeling investment choices. For instance, in Los Angeles, a minor mid-range kitchen remodel costs an average of $30,551 (well over the national average of $26,214), but you can expect to recoup nearly 90% if you undertake the project.<\/p>\n

Elsewhere in the Pacific region, you\u2019d still expect to see a return near 80% on that same minor mid-range kitchen remodel \u2014 but the national average is closer to 70%.<\/p>\n

When remodeling, earlier is better<\/h2>\n

Sure, we can talk about ROI all day long \u2014 but your monetary investment into an improvement and your enjoyment of your own home on a daily basis are two different things. Livability is a key point for homeowners, and if you really want the maximum benefit from your investment, then remodeling sooner is unquestionably better.<\/p>\n

For instance, if you have a new baby on the way, and the nursery will take over the home office essential to your livelihood, that could be a great time to finish a basement, build an extension, or reconfigure your home\u2019s footprint \u2014 regardless of the implications on your dollar-for-dollar ROI.<\/p>\n

\u201cIf you\u2019re having a baby and losing your office, creating an office in your backyard is a good idea even if you\u2019re not going to see 100% return on it,\u201d Olcott says. \u201cYou\u2019re going to have it for your sanity, you’re going to have a quiet workspace, and then it will add value when you go to sell it. If the house next door doesn\u2019t have one, and you do, then yours is the more desirable house.\u201d<\/p>\n

The sooner a homeowner chooses to renovate or update<\/a>, the more time they have to enjoy the fruits of the labor, and the more value they will get out of the renovation. Depending on your unique situation, you may decide this matters to you as much (or even far more) than some theoretical bottom line that may not become relevant until the distant future, anyway.<\/p>\n

\u201cIf you’re going to put $50,000 into a remodel of your kitchen because it feels old and dated, you can get six, eight, up to 10 years out of that project, so I tell clients to do the work and enjoy it for a few years,\u201d Olcott says. \u201cI can\u2019t tell you how many people I do it for right before they sell, and they go, \u2018Oh, we wish we’d done this so long ago!\u2019\u201d<\/p>\n

Remodeling for a sale<\/h2>\n

Updating your house right before you sell means you are not going to get much enjoyment out of it as a resident. However, it certainly makes your house more attractive to buyers.<\/p>\n

If this is your main goal, \u201cfocus on upgrades that elevate the home’s curb appeal<\/a> and overall exterior \u2014\u00a0a renovated and upgraded house exterior gives a grand impression to buyers and sells the house to them before they even enter,\u201d says Joshua Blackburn, a contractor with Blackburn Construction<\/a>.<\/p>\n

\u201cAesthetic value is just as important as dollar value when it comes to remodeling a house for a higher return. Customers buy with their eyes first, then with their pockets.\u201d<\/p>\n

Remodeling can even increase your actual appraisal value<\/a>: The appraiser is supposed to consider the condition of the house, and an upgraded house is typically considered to be in better condition than one without any renovations.<\/p>\n

Further, depending on how new or updated the homes around you are, you could be bringing your house more in line with higher-value comps for the appraisal. (More on that later.)<\/p>\n

\"A<\/a>
Source: (Laurence Katz \/ Unsplash)<\/figcaption><\/figure>\n

What projects increase your home value the most?<\/h2>\n

Let\u2019s take a deeper dive into the Remodeling Cost vs. Value data. This time, we\u2019ll look at the rankings according to the percentage of cost recouped at resale.<\/p>\n

As you\u2019ll see below, a main suite addition (upscale and mid-range) is going to get you the most resale increase in raw dollars, but these projects are are low ROI \u2014\u00a0you only get 48% back of an upscale suite addition.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Project<\/b><\/td>\nJob Cost<\/b><\/td>\nResale Value<\/b><\/td>\nCost Recouped<\/b><\/td>\n<\/tr>\n
Bathroom addition (upscale)<\/td>\n$103,613<\/td>\n$54,701<\/td>\n52.8%<\/td>\n<\/tr>\n
Bathroom addition (mid-range)<\/td>\n$56,946<\/td>\n$30,237<\/td>\n53.1%<\/td>\n<\/tr>\n
Main suite addition (mid-range)<\/td>\n$156,741<\/td>\n$85,672<\/td>\n54.7%<\/td>\n<\/tr>\n
Roofing replacement<\/td>\n$46,031<\/td>\n$25,816<\/td>\n56.1%<\/td>\n<\/tr>\n
Major kitchen remodel (mid-range)<\/td>\n$75,571<\/td>\n$43,364<\/td>\n57.4%<\/td>\n<\/tr>\n
Bathroom remodel (mid-range)<\/td>\n$24,424<\/td>\n$14,671<\/td>\n60.1%<\/td>\n<\/tr>\n
Window replacement (wood)<\/td>\n$23,219<\/td>\n$15,644<\/td>\n67.4%<\/td>\n<\/tr>\n
Window replacement (vinyl)<\/td>\n$19,385<\/td>\n$13,297<\/td>\n68.6%<\/td>\n<\/tr>\n
Minor kitchen remodel (mid-range)<\/td>\n$26,214<\/td>\n$18,927<\/td>\n72.2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Where should a would-be remodeler start?<\/h2>\n

First, evaluate your goals: Are you working toward a more functional, livable, enjoyable house for your family? Or do you want to max out ROI for a quick sale?<\/p>\n

From there, consider your budget. Some projects will get you as much as 90% or more ROI, but they are not super expensive projects, and therefore aren\u2019t going to boost overall value by a ton.<\/p>\n

For a smaller home project<\/a> that can spruce up a home quickly for more enjoyment and curb appeal without breaking the bank, consider a new entry door. This project costs about $2,000, and you can expect a return of about 65%. And remember the major ROI potential on that $3,907 garage door replacement: a whopping 93.8%.<\/p>\n

Olcott explains that a coat of paint over the kitchen cabinets and changing out the door knobs and drawer pulls can yield \u201cmassive change to what the kitchen looks like,\u201d and also yield major ROI \u2014 potentially much more than the initial investment. Same goes for upgrading to granite countertops, swapping out outlets, and updating baseboards throughout the home.<\/p>\n

Undertaking all of these small projects combined, she estimates, could cost $10,000 \u2014 \u201cand it would return you five to 10 times your investment.\u201d<\/p>\n

\"A<\/a>
Source: (Beazy \/ Unsplash)<\/figcaption><\/figure>\n

Resale-value factors<\/a><\/h2>\n

If you have an appetite \u2014 and budget \u2014 for a larger project, consider the kitchen.<\/p>\n

\u201cKitchens are one of the most important parts of a home, so by commissioning a fairly minor kitchen remodel, you can recoup a significant fraction of your initial costs, sometimes even up to 70% \u2014\u00a0modern, functional kitchens are a major selling point now,\u201d explains Ray Brosnan of the building services and management company Brosnan Property Solutions<\/a>.<\/p>\n

\u201cYou’ll presumably be replacing old, outdated appliances with far more energy-efficient models, replacing cabinets, new countertops \u2014 and, of course, painting<\/a> and reflooring<\/a>.\u201d<\/p>\n

Homebuyers are motivated by what they see before they even come inside the home, according to data. In a recent HomeLight survey<\/a>, a whopping 31% of agents said that a desire for more outdoor space was a top moving motivator in their market.<\/p>\n

\u201cWork on projects that upgrade any features in the front of the house, such as replacing that garage door with a modern, motorized opener, for example,\u201d Blackburn recommends. \u201cThis simple upgrade is immediately visible to buyers and gives a statement of quality and convenience.\u201d<\/p>\n

You can also think about adding square footage, if possible, to compete with larger neighborhood comps when it\u2019s time to sell.<\/p>\n

\u201cIf there is a 2,000-square-foot home with a 500-square-foot unfinished third floor, and there are numerous homes in the neighborhood with 2,500 square feet, then finishing that third floor will generate a large impact on value,\u201d explains Matt Harmon<\/a>, a state-certified property appraiser, real estate photographer, and home measuring specialist.<\/p>\n

He explains that adding square footage with the goal of ROI must be undertaken in such a way that keeps pace with the neighborhood \u2014 but doesn\u2019t outpace it.<\/p>\n

\u201cIf the average home size in a neighborhood is 2,000 square feet, and you have an opportunity to finish an additional 1,000-square-foot space, the return on value will be less, as a 3,000-square-foot home is beyond the upper limit of home sizes for the neighborhood.\u201d<\/p>\n

Focus on universal appeal for ROI<\/h2>\n

The main reason why there isn\u2019t a dollar-for-dollar relationship between remodeling and home value is because remodeling can vary widely in terms of quality and style, Harmon explains. \u201cThe greater the market acceptance, the higher the return on value,\u201d he says.<\/p>\n

For example, he says, \u201cremodeling a kitchen with expensive yellow cabinets, red countertops, and blue flooring might cost a fortune, but will not have any market acceptance and may actually have a negative impact on value.\u201d<\/p>\n

Another related pitfall: over-improving a home. \u201cThis is when a property is improved in a way that outpaces the expectations of the immediate market,\u201d Harmon explains. \u201cExamples would be the largest home in the neighborhood, the nicest upgrades in the neighborhood, the only home with special features such as a pool<\/a>, putting green, or basketball court.\u201d<\/p>\n

The greater the over-improvement, the lesser the return on value, he notes. \u201cHomes should be remodeled to a degree that matches the other upgraded homes in the immediate market area to avoid this impact,\u201d Harmon says.<\/p>\n

\"A<\/a>
Source: (\u0410\u043d\u0434\u0440\u0435\u0439 \u041f\u043e\u0441\u0442\u043e\u0432\u043e\u0439 \/ Unsplash)<\/figcaption><\/figure>\n

When remodeling increases home value more<\/i> than the investment<\/h2>\n

It can be tempting to get bogged down in all the data, but experts say you should think of remodeling as a way to increase your livability in a home \u2014 and in the end, it might even bring more ROI than you think.<\/p>\n

\u201cIf you do it right, you’ll actually get a better<\/i> deal out of it than just a dollar-for-dollar trade,\u201d explains Ezra Laniado, president and founder of Los Angeles-based Landmark Construction<\/a>.<\/p>\n

In his market, for instance, he says room additions, accessory dwelling units<\/a> (ADUs), new kitchens, and renovated master quarters are bringing in more at sale than the equivalent of the money it cost to remodel them.<\/p>\n

\u201cThe master bathroom, master bedroom, and master walk-in closet are huge,\u201d he says, \u201cbecause that’s where the buyer will actually be potentially spending a large portion of their time once the home is purchased \u2014\u00a0and it gets them emotionally excited about buying the home.\u201d<\/p>\n

After all, people aren\u2019t robots. Rather, \u201cwe\u2019re emotional creatures,\u201d Olcott says. So even small but strategic improvements really do matter to buyers.<\/p>\n

And that inevitably translates to ROI on your home improvement project!<\/p>\n

Header Image Source: (Ralph (Ravi) Kayden \/ Unsplash)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Does remodeling increase home value? Yes, but it\u2019s not usually a dollar-for-dollar trade. Here\u2019s how experts say you should think about remodeling.<\/p>\n","protected":false},"author":150,"featured_media":26868,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,654,707],"tags":[790],"class_list":["post-26855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-homeownership","category-value-increase","tag-remodel-vs-renovation"],"acf":[],"yoast_head":"\nDoes Remodeling Increase Home Value? Yes, But With These Caveats<\/title>\n<meta name=\"description\" content=\"Does remodeling increase home value? Yes, but it\u2019s not usually a dollar-for-dollar trade. 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