Adding Home Value: The Best Home Improvements for Resale

Home improvements can add value to your home, but returns vary. Kitchen and bathroom remodels often offer the highest return, sometimes over 100% in strong markets, while adding a second bathroom is also highly beneficial. Room additions, attic conversions, and decks can improve resale value, depending on the project. Basic maintenance, like a new roof or updated plumbing, is crucial to adding home value. Curb appeal, such as exterior repainting and siding replacement, is key to attracting interest. Contact us today for a free home valuation at (805) 267-9171..!

Photography by: Jeff Shoket

The True Costs of Home Improvements and Adding Home Value

Project: Kitchen Remodel – Cost $15,000 to $20,000 – Value Added to your home is 80% to 110%

Cost includes new cabinets, countertops, rewiring, structural changes, relocated plumbing, custom cabinetry, and top-of-the-line appliances.

Project: Bathroom Remodel – Cost $7,000 to $10,000 – Value Added to your home is 80% to 115%

Cost covers new fixtures, fittings, tile floors, walls, structural changes, and relocated plumbing. High-end materials increase costs. Note: A second bathroom can yield over 100% resale value.

Project: Room Addition – Cost $30,000 to $40,000 – Value Added to your home is 50% to 115%

Costs vary by room type. Family rooms or master suites add more value than private offices or fourth bedrooms.

Project: Converting an Attic/Basement – Cost $15,000+ – Value Added to your home is 25% to 40%

Costs depend on the project. Value varies by house size (smaller homes gain more) and space type (family rooms or bedrooms add more than game rooms).

Project: Adding a Deck – Cost $10,000+ – Value Added to your home is 40% to 60%

Warmer climates increase value. Deck size, design complexity, and amenities (spa, trellis) affect costs.

Project: Repainted Exterior – Cost $1,200 to $5,000 – Value Added to your home is 40% to 60%

Assumes a worn exterior was repainted before listing. Fresh paint boosts profit for older homes.

Project: Pool Addition – Cost $20,000 to $50,000 – Value Added to your home is 20% to 40%

Cost assumes a 16′ x 32′ rectangular pool. Note: Pools often aren’t factored into mortgage appraisals.

Which Home Improvements Boost Home Value?

by Kathy Mcleary

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.

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Kitchen and Bath Remodels

In hot markets, kitchen and bath remodels yield strong returns. A $9,400 bathroom remodel in Baltimore recouped 182% in 2004, per Remodeling. Cities like Washington, D.C., and San Diego saw triple-digit returns. Minor kitchen remodels ($15,273 average) returned over 100% in Providence, Miami, and San Diego.

“Kitchens and baths show where money was spent,” says architect Steve Straughan of KAA Design Group. “They’re costly to build and where people spend time.”

Planning a Bath Remodel

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

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Photography by: Jeff Shoket