5 Renovations That Add Value to Your Home (and 3 That Don’t)

When it comes to renovating a home, not all upgrades are created equal. Some renovations can yield a great return on investment (ROI) when it’s time to sell, while others might not add as much value as you’d hope. Here’s a look at five renovations that tend to increase home value and three that often fall short.

5 Renovations That Add Value

1. Kitchen Remodels

The kitchen is one of the first places potential buyers look when touring a home, and a well-updated kitchen can add significant value. Even a minor kitchen remodel—like updating appliances, refreshing cabinets with new paint or hardware, and adding modern lighting fixtures—can provide a high ROI. For major renovations, focus on popular features such as a spacious island, granite or quartz countertops, and energy-efficient appliances.

2. Bathroom Upgrades

Bathrooms are another area where upgrades can pay off. Simple changes like replacing old fixtures, installing a new vanity, and adding modern tile can make a big impact. If the budget allows, consider adding an extra bathroom, especially if the home has only one. Additional bathrooms, especially full or half-baths, can significantly increase the home’s value and appeal.

3. Curb Appeal Enhancements

First impressions matter. Improving curb appeal can make a home more inviting and appealing to buyers, often without a huge investment. Adding a fresh coat of paint to the exterior, upgrading the front door, landscaping, and even installing a new mailbox can all add value. Consider small but impactful changes like planting seasonal flowers, adding outdoor lighting, or refreshing walkways to create a welcoming entrance.

4. Energy-Efficient Windows

Replacing old windows with energy-efficient models can boost both home value and buyer appeal. Not only do new windows improve the appearance, but they also help lower utility bills—an attractive feature for buyers who are looking for long-term savings. Energy-efficient windows can make a home feel more comfortable by reducing drafts and improving insulation, making this a smart investment.

5. Attic or Basement Conversion

Converting an attic or basement into a usable living space is a great way to add square footage without altering the home’s footprint. Whether it’s an extra bedroom, home office, or playroom, these additional spaces can increase a home’s value by giving buyers more usable areas. Just be sure the conversion is well-insulated and includes necessary finishes, like flooring and lighting, to make it feel like a true part of the home.

3 Renovations That Don’t Always Add Value

1. High-End Landscaping

While curb appeal is important, overly lavish landscaping—like exotic plants, custom water features, or intricate garden designs—rarely provides a good ROI. Buyers appreciate a well-maintained yard but often view high-maintenance landscaping as a burden rather than a benefit. Instead, focus on a clean, simple look with low-maintenance plants and easy-to-care-for landscaping.

2. Extensive Luxury Upgrades

Top-of-the-line upgrades like a home theater, high-end chef’s kitchen, or extravagant custom closets may be appealing but aren’t always practical investments. These luxury additions tend to be highly personal and may not align with a buyer’s taste or needs. While they may add appeal, it’s unlikely you’ll recoup the full cost when selling. A functional, modern kitchen or bathroom upgrade will often provide a better ROI than an overly luxurious one.

3. Swimming Pools

While pools are popular in some regions, they can also deter potential buyers who may be concerned about maintenance, insurance, and safety. Pools generally don’t provide a high return on investment, and in cooler climates, they may even decrease a home’s value. If you live in an area where pools are highly desirable, a pool may be an asset, but in most cases, it’s a costly addition that doesn’t add as much value as expected.

Before jumping into any renovation, consider the local market and think about what potential buyers value most in your area. Focusing on practical, widely appealing upgrades is generally a better investment than opting for extravagant or niche additions. By choosing the right renovations, you can make your home more appealing to buyers and maximize your return when it’s time to sell. Happy renovating!