Celebrities who perform dramatic home makeovers on TV and the average homeowner on Main Street live in two very different worlds. One has the budget of a reality show to foot the bill for materials and labor, and the other has whatever’s in their bank account and tight profit margins. To successfully improve home value, it’s essential to identify which projects are truly worth the effort and investment.
So halt your plans for a $50,000 chef’s kitchen and luxurious master suite inspired by Fixer Upper until you know all the facts. When the purpose of your project is to improve home value and boost the asking price at resale, it’s smart to spend less on several smaller cosmetic improvements rather than one or two major room overhauls.
More importantly, you need to remove your personal bias from design decisions or risk turning off buyers from your custom taste.
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Upgrading Your Home? First, See How Much It's Worth
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“When a seller updates the home based on personal preferences, there’s probably a 70% or 80% chance you’re going to make the wrong decisions,” advises Cleve Gaddis, a top-selling agent in Johns Creek, Georgia.
“A professional agent has a complete understanding of what current buyer preferences are, so they can tell you where to spend money to appeal to the largest number of buyers.”
Let’s take a look at some of the most popular pricey projects that have the lowest return on investment (ROI) and the wiser, low-cost upgrades that offer a bigger bang for your buck.
Start with what HomeLight’s data says about top home features
Our Top Agent Insights for End of Year 2024 report surveyed over 750 leading real estate agents nationwide, uncovering the features that have become the hottest selling points in today’s market. Here’s what buyers are seeking, as agents noted:
- Updated kitchens and appliances: 88%
- Enhanced curb appeal, outdoor, and garden spaces: 48%
- Home offices or remote work areas: 38%
- Luxurious primary bathrooms: 36%
- Energy-efficient features: 9%
Real estate agents estimate that certain updates can significantly boost a home’s value. For example, a kitchen remodel can add an average of $28,826 to the value of a median-priced home. Even smaller updates yield remarkable returns: a fresh coat of paint could increase your home’s value by $10,184, and thorough decluttering could net an additional $11,706.
However, while these features are undeniably appealing to buyers, not every improvement guarantees a high ROI. For instance, embarking on a full-scale kitchen or bathroom overhaul may not always be the wisest financial decision.
These projects are not only extremely costly but there’s also the risk that your design choices may not align with the tastes and preferences of potential homebuyers.
Instead, consider which projects will balance buyer appeal with profitability. Simple upgrades like painting, landscaping, and minor renovations often deliver the highest ROI without breaking the bank.
The key to adding value lies in strategically investing in the right projects, those that resonate with buyers and pay off in the end.
Using our own data and other credible sources, such as The Journal of Light Construction (JLC) and top real estate agents in the HomeLight network, we put together this list of basic do’s and don’ts when it comes to home renovations.
1. DON’T: Drop big bucks on a full kitchen renovation
If you’re in a house built more than a decade ago that’s never been remodeled, you’re living with an outdated kitchen. And if you’ve spent any time cooking in it, chances are you’ve imagined ripping it out more than once.
Prepping to sell the place may seem like the perfect time to invest in finally making that dream kitchen come true, but it may shock you how much that dream will cost.
According to JLC, a major kitchen remodeling project costs $79,982, but would only recoup 49.5% of the cost. And if you make that major kitchen renovation without consulting an agent, you’ll likely spend more money than necessary on the wrong design choices.
“One of my clients chose all of her own upgrades, and the combination of the countertop with the backsplash couldn’t have been worse if she had intended to pick the worst,” recalls Gaddis.
“It took an extra three months to sell the home, we wound up having to change out the backsplash, and she spent twice as much on the upgrades as she should’ve in the first place.”
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2. DO: Give the kitchen a less than $5,000 makeover
The truth is, Gaddis’ client could have achieved the look of a fully remodeled kitchen by spending just a few thousand dollars on the right items.
“If you’re improving the kitchen, you’ll never get your money back by changing out the cabinets,” advises Gaddis. “Instead, just do cosmetic fixes like painting the existing cabinets, changing out the cabinet hardware, and replacing the countertops with granite.”
Replacing the countertop, perhaps already the most expensive part of this minor kitchen makeover, costs an average of $3,155 only. The final cost depends on the material, edging, and backsplash options you choose.
Install those countertops and repaint the cabinets for as little as $425 to $1,460. Then invest as little as $500 in replacing the sink, faucet, and cabinet hardware. The kitchen will look like a full remodel for less than $5,000.
According to JLC, a minor, midrange kitchen remodel can cost up to $27,492, and you’ll be able to recoup 96.1% of your costs.