Top Home Improvement Projects That Boost Your Home's Value (and Some That Don’t

When it comes to home improvement, not all projects are created equal. Whether you’re prepping to sell or simply looking to increase your home’s value over time, some upgrades are sure to pay off, while others could actually hurt your bottom line. Let’s break down the best and worst home improvement projects for boosting resale value.

Projects That Increase Home Value

1. Kitchen Remodel
   The kitchen is the heart of the home, and upgrading it is one of the best investments you can make. Focus on a minor kitchen remodel rather than a full overhaul. Small updates, like new countertops, refacing cabinets, upgrading appliances, and fresh lighting, often yield a high return. Homeowners can recoup 70-80% of the costs when selling.

2. Bathroom Upgrades
   A well-appointed bathroom can significantly increase your home’s appeal. Mid-range bathroom renovations, like replacing outdated fixtures, refreshing tile work, and adding modern vanities, can offer a return on investment (ROI) of around 60-70%. Adding a second bathroom to a home with only one can also boost value.

3. Curb Appeal Enhancements
   First impressions matter, and exterior upgrades pay off. Installing a new front door, fresh landscaping, or a garage door replacement typically offers one of the highest ROIs. Simple landscaping projects, like adding plants, installing pathway lighting, or even repainting your home’s exterior, can provide an immediate value boost.

4. Energy-Efficient Improvements
   With increasing awareness of energy efficiency, upgrading windows, doors, and insulation is a fantastic investment. These updates not only reduce energy costs but also appeal to eco-conscious buyers. Expect to recoup 65-75% of the costs with energy-efficient windows or smart thermostats.

5. Attic or Basement Conversion
   Converting unused space into functional areas like an attic bedroom or finished basement is a value-boosting project. This adds square footage without expanding your home’s footprint. A basement remodel can offer an ROI of up to 75%, while an attic conversion typically brings 60-65% ROI.

6. Deck Addition
   Expanding outdoor living space is a popular trend, and adding a deck is a fantastic way to enhance this aspect of your home. A wooden deck addition can yield a return of 70-75%, making it a relatively affordable project with high payback potential.

Projects That Don’t Help (or Even Hurt) Your Home’s Value

1. Luxury Upgrades with Limited Appeal
   High-end renovations like installing a wine cellar, imported tiles, or extravagant lighting fixtures can appeal to niche buyers but won’t necessarily add overall value. Often, these projects have high costs with low returns and may even turn off potential buyers who aren’t interested in maintaining or replacing luxury items.

2. Over-Personalized Renovations
   Anything too specific to your personal tastes, such as bold paint colors, themed rooms, or quirky fixtures, can actually detract from your home’s value. Buyers prefer neutral, versatile spaces that they can imagine personalizing themselves.

3. Home Office Conversions
   With the rise of remote work, you might think turning a bedroom into a dedicated office would boost value. However, in many cases, it’s better to keep extra bedrooms intact, as most buyers would prefer additional sleeping space. You might not see a return on investment if you fully convert a bedroom into an office with built-ins.

4. Swimming Pools
   A swimming pool is often seen as a luxury feature, but it doesn’t always add value to a home. Pools can be costly to maintain, and some buyers see them as a safety concern, especially families with small children. In some regions, pools do add value, but it depends on your local market and climate. In general, don’t expect a significant ROI.

5. Excessive Landscaping
   While curb appeal is important, over-the-top landscaping projects can backfire. High-maintenance gardens, koi ponds, or complex hardscaping might make buyers think about the upkeep costs rather than the beauty. Stick to low-maintenance plants and clean designs to keep things appealing.

6. Wall-to-Wall Carpeting
   While carpeting was once popular, most modern buyers prefer hardwood, tile, or vinyl flooring. Installing new carpet throughout your home could be seen as a downgrade in value, especially if buyers need to replace it with something more durable.

Final Thoughts

When deciding on home improvement projects, it’s important to consider both cost and potential resale value. Focus on upgrades that enhance functionality, curb appeal, and energy efficiency, while avoiding overly personal or luxury renovations that won’t appeal to a broad audience. By choosing wisely, you can enjoy your home improvements now while ensuring they contribute to your home’s future value. Your Realtor should be able to advise you on current market trends and conditions if you're looking for another opinion.