Home renovations are a fun endeavor for many homeowners. However, these projects can also be a smart financial move.

While carefully planned improvements make your living space more comfortable, it can also increase its value—if you want to sell it in the future.

The choices can be overwhelming, but the key is striking the balance between your preferences and what potentially brings a higher return on investment.

As such, this guide will provide a list of home improvements that can make your property more marketable. We will also cover aspects affecting these remodels and upgrades that may not bring your desired return on investment.

1. Kitchen Remodeling

The kitchen is one of the most-used rooms in your home. Homebuyers usually seek updated and modern kitchens. Thus, remodeling your kitchen may increase your property’s appeal.

Minor kitchen renovations that can add value involve aesthetic changes like floor replacements, wall and ceiling repainting, appliance upgrades, and cabinet and countertop remodeling.

You can get a decent return by keeping the costs low. High-end remodels typically bring lower returns because only specific buyers recognize over-engineered features.

2. Bathroom Remodeling

Like the kitchen, the bathroom is another frequently used space. Stylish bathrooms often appeal to prospective buyers.

However, bathroom remodels usually follow the same return on investment pattern as kitchens.

It’s best to keep your bathroom clean, organized, and appealing rather than spending outrageous costs on digitizing. It also involves replacing the fixtures—tub, toilet, vanity—with modern versions and expanding the space by adding amenities like a walk-in shower.

3. Energy-Efficient Upgrades

The widespread adoption of green and clean power sources has made energy-efficient upgrades valuable to homebuyers. These improvements can lower utility bills and increase sustainability, making them attractive features for buyers, particularly eco-conscious consumers.

One example of an energy-efficient upgrade is converting your ventilation system from a fossil fuel furnace to an electric heat pump. While this conversion can be costly, it may generate a high return on investment.

Other energy-efficient enhancements worth considering include:

• Sealing air leaks around walls, ceilings, floors, doors, windows, and fireplaces with weather stripping, caulk, and spray foam

• Adding insulation to the basement, attic, and exterior walls

• Installing energy-efficient doors, windows, lights, and programmable thermostats

4. Exterior remodels

Outdoor living spaces are areas for get-togethers, entertainment, and relaxation. Remodeling these spaces is another way to add more value to your property.

Here are some ways to enhance your curb appeal:

• Replace the front door, garage door, and vinyl siding

• Add new walkways

• Scrub the siding to clean dirt buildup and retouch worn areas

• Repainting

• Add more green spaces for outdoor activities

However, like kitchen and bathroom remodels, you shouldn’t go overboard. Keeping your lawn and front yard clean is all you need to amplify your property’s appeal.

5. Converting Basements Into Living Spaces

Converting your basement into a habitable area is a home improvement that can pay off. Since it adds a living space, it can significantly attract homebuyers.

The basement finishing projects that can add home value include:

• Plug the leaks and waterproofing

• Add a bedroom, bathroom, or second kitchen

• Convert it into a recreation room, storage space, guest room, or a kids’ play area

With many people opting for a work-from-home setup, transforming your basement into a home office is another conversion project that can add value to your property.

6. Roof Replacements

A new roof can increase your home value. However, the return on investment depends on the type of roof replacement.

• Asphalt – According to Remodeling’s 2023 Cost vs. Value Report, new asphalt shingles can increase your property value by around $17,807, assuming you have a rectangular hip roof with a vented ridge and two regular-sized skylights. This replacement represents a 61 percent return on investment

• Metal Roof – The same report shows that a metal roof can increase home value by around $23,163, representing a 48.9 percent return on investment. This resale value assumes you have a rectangular hip room, two average-sized skylights, and a vented ridge

7. Accessible Design and Spaces

Ideally, home renovations should follow the seven universal design principles to create inclusive and accessible spaces for everyone. This approach can increase your home value because it caters to individual tastes, capabilities, and preferences.

• Equitable Use: The design is marketable to people with diverse abilities

• Flexibility in Use: The design accommodates various preferences and abilities

• Simple and Intuitive Use: The space is easy to understand, regardless of user knowledge, experience, concentration level, and language skills

• Perceptible Information: The design effectively communicates information to the user regardless of sensory abilities and ambient conditions

• Tolerance for Error: The space reduces hazards and adverse consequences of accidents or unintentional actions

• Low Physical Effort: The user can use the design efficiently and comfortably

• Size and Space for Approach and Use: The design has appropriate sizes and spaces for approach, manipulation, reach, and use, regardless of posture, body size, or mobility

With these principles, you can make your home accessible by adding back or side doors, widening doorways, or creating a step-less entrance.

Do home improvements always increase your property’s value?

Home improvements don’t always increase your property’s value. Even if they do, they’re not usually the same as making a profit or recouping the costs.

Some upgrades may not add value because they go beyond an average homebuyer’s preferences or are not aligned with your neighborhood’s style and value.

Factors That Determine if a Renovation Increases Property Value

Besides remodeling projects, the factors that determine if renovations will add resale value include:

• The latest real estate trends

• Your property’s location and neighborhood

• The quality of materials

• Buyer preferences

It’s best to consult a real estate agent before starting a renovation or remodeling project. Agents can help equip you with valuable knowledge and insights about potential buyers’ interests. They can also advise which design choices, upgrades, and renovations are more likely to increase your property’s value.

Home Renovations That Decrease Property Value

Now that you know home renovations don’t necessarily increase your property’s value, what type of projects can decrease the resale value?

• Outlandish lighting fixtures

• Turning a bedroom into a closet

• Highly personalized customizations

• Bright and bold colors

• Overly high-end kitchen

• Features with continuous maintenance like built-in electronics and swimming pools

• Removing a bedroom

Apart from being costly, these remodels may destroy valuable features that attract homebuyers. Sometimes, they might just turn the buyers off.

Moreover, hyper-personalized details can make it challenging for buyers to envision themselves in the space. They may even be forced to create a to-do list to change some aspects so the space can feel like home.

Indulging in your tastes and preferences is fine if you plan to stay in the property for years. However, you may have to undo some work when reselling.

To avoid renovations that decrease property value, here’s what you should do:

• Carefully choose your remodeling projects

• Ensure the improvements are consistent with your home’s character

• Outdoor enhancements should also be consistent with the neighborhood

• Opt for modern changes that aren’t too trendy

Should you remodel based on your property’s value?

Unless you’re a professional house flipper, you shouldn’t remodel based on your property’s value.

The primary goal of renovations and remodels should focus on making comfortable and functional spaces for you and your loved ones.

It’s wise to compare your home value with other properties in your neighborhood. Spending on costly upgrades might not yield high returns if they make your property more expensive than nearby homes.

Financing sources are also in the equation. A personal loan might be helpful if savings aren’t enough to cover the costs. At the same time, veterans can qualify for VA loans offered by private lenders like SoFi. These government-backed loans offer low interest rates and closing costs.

Make Smart and Valuable Investments

When investing in home remodels, aim for projects that blend your preferences with market appeal. These choices ensure your home remains comfortable and functional while securing its asset value.

Remember that thoughtful and market-driven renovations help elevate your living experience and future financial returns, making every upgrade a wise and valuable investment in the long run.