Adding Home Value: The Best Home Improvements for Resale

Our Home Improvement Journey

My husband and I spent $20,000 on home improvements in our first year. We hoped for granite counters and steam showers but instead replaced the furnace, installed new gutters, added a drainage system, landscaped, and painted. At year’s end, I cleaned my old Formica countertops and bathed in a 1950s seafoam green tub, wondering if our spending was wise. Would buyers value a dry basement and reliable furnace?

Expert Insights on Value

Realtors, contractors, and architects agree: basic maintenance matters. “A leaking roof stops buyers cold,” says Ron Phipps of Phipps Realty in Warwick, R.I. “Even a stunning kitchen won’t matter.”

Cost vs. Value: Key Findings

Per Remodeling Magazine, basic maintenance like new siding (92.8% cost recouped) outperforms major remodels. A minor kitchen remodel ($15,000) returns 92.9% at resale. Roof and window replacements also yield over 80% returns.

“Buyers expect functional systems,” says Sal Alfano, Remodeling’s editorial director. “They assume the roof, air conditioning, and plumbing work. Maintenance costs add up fast, and buyers fear surprises.”

Kitchens and Baths: Top Investments

Kitchen and bath remodels remain top investments. “They’re always high on the list,” Alfano notes. “New home builders splurge on these rooms, and buyers expect the same in existing homes.”

Consider your home’s value, neighborhood, market, sale timeline, and project quality. A $10,000 stove in a $200,000 house doesn’t add up, says Phipps. Adding a second bathroom doubles the resale value of a bedroom.

For kitchen or bath remodels, choose timeless features: all-wood cabinets, commercial appliances, wood or stone floors, and stone countertops. Walk-in showers are now preferred over whirlpool tubs. “Most people don’t use tubs,” Straughan says. “A big shower saves space.”

Don’t remodel your only bathroom; add a second one instead. A National Association of Realtors study found a new bathroom increases sale price by 8.7%, far more than a bedroom.

If not selling soon, remodel for your enjoyment. Phipps recalls a house with a two-year-old kitchen remodel where the Viking range was unused. “The owners weren’t cooks,” he says.

Prioritize Home Maintenance

New kitchens lose appeal if the basement leaks, says Alfano. “Keep the structure sound,” advises contractor Don Sever. “I’ve seen homes with $40,000 kitchens but water in the basement. Fix foundations first.”

Buyers prioritize functional systems. A 30-year-old roof is a bigger concern than an outdated bathroom, Phipps notes. Over 70% of buyers plan remodels after purchase, per a 2002 HanleyWood study.

Boost Curb Appeal

“Curb appeal draws buyers in,” says realtor Dick Gaylord. A strong exterior, like a front porch, creates a welcoming feel, says Phipps. Siding replacement is low-maintenance and recoups 92.8% of costs.

Adding Space

Room additions shine in hot markets. “We see demand for sunrooms and larger homes,” says contractor Don Sever. Adding 1,000 square feet boosts sale price by over 30%, per a 2005 study. Bathroom additions return 86.4%, while attic bedrooms and sunrooms return 70–80%.

Don’t overbuild for your neighborhood, warns Phipps. Stay within the upper range of local values.

Unique Features

Some improvements are about dreams, not resale. Architect Straughan built a $250,000 home theater with a 12-foot screen. “Home theaters are common and appeal broadly,” he says. Wine cellars and yoga rooms are also popular in high-end markets.

Source: HGTV