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Home Remodels That Pay Off Big When Selling Your Home

Home Remodels That Pay Off Big When Selling Your Home

If you’re putting your home up for sale, chances are you have a honey-do list a mile long of projects to tackle—don’t we all? But don’t fret! You don’t have to make your home perfect, just perfectly saleable. Some projects can take a backseat in favor of more lucrative remodels that pay off big (ka-ching!), earning you a better sale price at closing.

Where should you focus your efforts, you ask? Think of the main areas of your home—the kitchen, bathroom, exterior—that will catch a prospective buyer’s eye. Then, think about how you can improve those areas and truly make them shine. 

How We Decided What Made the List

Stunning Dining room and Kitchen in New Luxury Home. Wood beams and elegant pendant lights accent the beautiful open floor plan, dining room, and kitchen.

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To get an idea of what projects to lead with, we spoke with experts like those from the National Association of Realtors (NAR). We also took data from the Top Agents Insights End of Year 2024 report. 

With all this data, we then used this insight and information to determine what remodels give you the best return on investment (ROI)- because not all investments (of time and money) are worth it. 

Update the Kitchen

A handyman paints a fresh coat of varnish on the surface of a base kitchen cabinet with a medium sized brush. Home renovation or finishing works.

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The kitchen is one of the top areas homebuyers look at when deciding to purchase. Thus, it makes sense to focus a good portion of your remodel budget on that space. Dustin Fox, co-founder of Fox Homes, a real estate agency in Washington, DC, says “[a] dated kitchen can be a deal-breaker, whereas a polished, modern setup can turn casual observers into serious bidders.” If they can’t imagine cooking or entertaining in the space, it can be a problem.

If you look around and see more drab than fab, think about spending money modernizing the room. Fox says homebuyers recoup as much as 80% of their costs spent on kitchens when they sell. 

If you’re looking for ideas, Fox suggests replacing older countertops with more luxurious materials like granite and quartz, updating appliances with energy-efficient ones, adding a backsplash, and changing out cabinet hardware. Which ones are most important depends on your budget and current setup. 

Renovate the Bathroom(s)

A luxurious bathroom with a freestanding bathtub

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According to the Top Agent Insight report, along with kitchen revamps, bathroom renovations are worthy investments. Specifically, 36% of agents surveyed noted more luxurious master bathrooms are a strong selling point. Plus, 94% agree modernizing bathrooms in general would make a home more appealing. 

Upgrades to bathrooms can be cheap or expensive, depending how in-depth you want to go. For example, installing a new vanity or updating the flooring is a project you might be able to do yourself in a weekend for just a few hundred dollars. However, if you want to add new tub or shower units, you’re taking on a bigger project that can cost thousands. If you have plumbing experience, you could certainly go it alone, but if not, leave it to the experts.

Install Energy Efficient Appliances

A senior man looking at fridge freezers in an electrical shop

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High utility bills are nobody’s best friend. If you’ve been holding off on replacing your old appliances with energy-efficient ones, you’re likely feeling the pinch in your wallet. When it’s time to list your home for sale, consider ditching them for Energy Star ones. There’s even a rebate in certain areas, so it’s important to check if your home meets the criteria. 

Fox says not to overlook HVAC systems because dated “units can be energy hogs.” Typically, he notes, energy-efficient upgrades are long-term investments and hold value much longer.

Install Smart Technology

smart screen with smart home with modern living room

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Smart technology has been around for several years and is only growing increasingly popular. One way to incorporate it into your home for the best value—immediate and long-term—is to install a smart thermostat. This can help regulate your home’s temperature and take the pressure off your HVAC system, resulting in lower energy usage. 

Don’t overlook smart lighting elements that boost energy efficiency or smart security systems that add peace of mind. 

Overhaul Your Flooring

A bright living room with a red accent wall, white decorative fireplace, and natural hardwood floors

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If your floors are looking like they belong in the 1970s, it might be time to upgrade. Today’s buyers are not looking for carpeted rooms. According to Panel Town & Floors, they’re in the market for versatile flooring that’s easy to maintain or classic hardwood floors that never go out of style. 

If you have worn carpet in your home, consider replacing it with tile or vinyl planks, both of which Panel Town & Floors say are popular and easy to care for.

Replace Worn or Damaged Garage Doors

New luxury home construction Exterior

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You might not think twice about your garage door, but there’s a chance a prospective homebuyer might notice. If yours is not working properly or has dings and dents that affect its performance, it’s worth splurging on a new one to boost your home’s value. 

Nina Holland, a residential broker with more than 20 years of experience and owner of Great Homes in Charlotte, shares that replacing the door(s) could cost around $4,500, but the resale value jumps to around $8,750, a 193.9% ROI. 

Finish Your Basement

A residential recreation games room and home gym in the basement of a luxury house villa.

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Unfinished basements give buyers a blank canvas. However, Brothers Construction notes that many see it as just another project rather than a completed area they can immediately jump in and use. 

Putting the time in to complete the area can yield significant value when you list your home. If you can’t afford to do a full remodel on it, which can be quite costly, consider doing smaller projects like installing flooring, adding floor paint, or painting the ceiling joists to give it a more finished look.  

Don’t Neglect the Outdoors

Backyard with fantastic landscaping, patio, drought resistant plants

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According to the NAR, some outdoor remodels pay off big time. Installing a new patio or wood deck, for instance, nets a 95% and 89% return on investment (ROI), respectively. 

A bigger project like an outdoor kitchen can net a 100% return. However, some of the bigger remodels, like installing an inground pool or fire feature, don’t necessarily pay off as well, returning only 56% ROI.

Remember the Curb Appeal

Charming Classic Family House Surrounded by Beautiful Blooming Flowers and Trees, Brighton, Massachusetts, USA

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Don’t forget about your front yard! Investing in a standard lawn care service can help boost your home’s curb appeal, and thus its value. In fact, 92% of Realtors suggest keeping a well-kept lawn to their clients for a quicker sale. 

You don’t need to go all out and create an Amazonian forest in your yard. Keep it simple. A freshly manicured lawn with neatly trimmed edges and a few native plants is all it takes. 

Focus on the Front Door

A front door and covered porch detail on a home with grey siding, white trim, red brick, a wooden front door.

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Is your front door looking kind of dated? Consider replacing it with a steel entry door, one that has a steel frame and panels yet offers a similar aesthetic as wood. This type of door can yield quite a return on investment, up to 188.1%, per Holland. She says they tend to cost less and if you buy one with an insulating core, you’ll improve your home’s energy efficiency as well.

Plus, there’s the safety factor, Holland notes, as steel doors are harder to break into than their wood counterparts. 

Add Stone Veneer

Luxurious new home with curb appeal. Trendy grey two-story exterior in Bellevue with large picture windows, stone siding, covered porch and concrete pathway. Northwest, USA

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Adding manufactured stone veneer to the outside of your home can boost its appearance, giving it a more modernized look. According to Holland, it’s also a worthy investment because it adds a touch of luxury without an overly luxurious price tag. 

You can expect to pay around $11,000 for the job, but the ROI is 153.2%, netting a resale value of just over $17,000.

Don’t Overlook the Small Things

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According to Santiago Valdez, a Chicago agent cited in a HomeLight article, one of the best things you can do for your home is keep up with regular maintenance. That means keeping your property clean, fixing drafty areas, filling in grout and caulk as it wears off, and painting rooms.

Doing these odd jobs as the need arises will keep you from having a long “honey-do” list as you’re in the midst of selling your home. 

It’s Time to Sell

A red door on a wooden navy blue house with white trim. The cottage has lush greenery around the entrance: red, yellow, pink, and white colored flowers, hydrangea shrubs, and green grass in front.

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Now that you’ve got your honey-do list sorted, it’s time to get to work. By prioritizing the areas experts say will pay off the most, you’re not throwing money at various projects, hoping something will stick.

You’re strategically investing in the sale of your home—and that’s about to pay off… big time when you are (hopefully) able to sell your home at the price point you want.

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