Want to Max Out Your Home’s Value? Start With This Upgrade

Maybe you want the luxury of a swimming pool in your backyard, but you’re not thinking about selling your home just yet. Or maybe you want to make improvements to entice potential buyers. Whatever your reason for renovating your home, very few renovations will return 100% of their cost if you sell.

You might not have a lot of choice when it comes to parting with those dollars if selling your home is your goal, however.

A study commissioned by Zillow indicates that 72% of sellers tackled at least one home improvement project to get their homes ready for sale. The National Association of Realtors (NAR) reports that Americans spent about $603 billion on remodeling their homes in 2024.

Cost-Effective Renovation Tips

If you plan to list your property for sale, a successful home renovation project can potentially involve spending a little and gaining a lot.

When evaluating home renovation projects, NAR calculated the cost recovery percentage of different projects by comparing how many dollars a particular renovation would likely add to the sales price and how much it would cost the homeowner to implement it. These are some renovation projects that could be worth the money for homeowners.

About That Front Door

A prospective buyer’s first introduction to a new home comes when they ring the doorbell. NAR puts cost recovery for a new steel front door at 100%, although a new fiberglass front door drops to 80%.

This means could expect to receive $600 more upon the sale of your home if you invested $600 into that steel door, but only $480 if you installed fiberglass instead.

“You can add instant interest and increase the value of the property by changing out one of the first things people see: the front door,” says Omer Reiner, a licensed Realtor and president of Florida Cash Home Buyers, based in Fort Lauderdale, Florida.

Interior Paint

This is one project you might be able to handle yourself. And at the very least, it won’t set you back an exorbitant amount of money. Zillow’s survey found that repainting the interior of a home was the most common pre-listing project. You’ll want to stay away from vibrant tones, however. Gray and beige are the recommended colors.

“Change of color coupled with staging goes a long way,” says Gregg Menell, CEO and managing broker at Pendulum Property Group in Mamaroneck, New York. “A typical bedroom is about $500. There’s an additional cost for trim and ceiling if necessary.”

You might want to head back to your front door while you have that paintbrush in hand, too. Consider simply painting it instead if replacing it is more than you want to tackle.

Windows and Lighting

Showing your home in its best light might require replacing a few windows and light fixtures.

New vinyl windows and new wood windows made NAR’s list of the most likely improvements to recover their cost as well. NAR placed them at 74% and 71%, respectively.

Energy-Efficient Improvements

Prospective homebuyers and current homeowners probably don’t want to shell out a lot of money on electricity or heating bills, so a few minor improvements, like insulating your attic, can go a long way in saving you money and increasing the value of your home.

The National Association of Home Builders (NAHB) found that Energy Star windows and appliances are at the top of buyers’ wish lists. About 80% deemed them to be “essential” or “desirable,” according to an NAHB survey reported on by the National Association of Realtors.

Another NAHB survey found that 57% of prospective homebuyers were willing to pay $5,000 or more toward a home that could save them $1,000 a year in utility costs.

Other Cost-Effective Projects

Not all of the projects in NAR’s list of top-rated home renovation projects for cost recapture will break the bank. Some are manageable investments. Others will set you back a good many dollars, but you’re likely to get a decent percentage of that money back at the time of sale:

• Closet renovation: 83% cost recovery
• Converting a basement to a living area: 71% cost recovery
• Converting an attic to a living area: 67% cost recovery
• Minor kitchen upgrade or complete renovation: 60% cost recovery
• New bathroom: 56% cost recovery
• New primary suite: 54% cost recovery
• Bathroom renovation: 50% cost recovery

Projects That Probably Won’t Pay Off

Adding a swimming pool is one of those renovation improvements that could detract from the value of your home. It will most likely add energy and insurance costs to the budgets of prospective buyers.

The same goes for top-of-the-line luxury upgrades. Zillow puts spa bathroom improvements and items like marble countertops in this category.

The Bottom Line

Almost 70% of homebuyers are in the market for single-family detached homes, according to the National Association of Home Builders, and 60% prefer to build rather than buy an existing home. This doesn’t mean you can’t improve your home’s value and potential selling price with a little careful planning and consideration, however. Some small and thrifty improvements can go a lot further than top-dollar luxury add-ons.