The home upgrades that bring the biggest return

COURTESY OF MAINSTREET REALTORS®

We’ve always known that first impressions matter, but did you know the same is true of your home?

Replace an outdated front door with a new steel door, and you’re likely to recoup 100% of the value when it comes time to sell. Opt for fiberglass, and you can recover 80%. These are just two of the many trends illuminated by the National Association of REALTORS® 2025 Remodeling Impact Report.

Real estate experts consistently share that curb appeal shapes buyer expectations before they ever step into a home. How well a home is maintained outside signals how well it is maintained overall, which can influence a buyer’s perceived value once they walk through the door.

Remodeling as a way of life in America

In 2024, Americans spent an estimated $603 billion remodeling their homes. While many homeowners are making changes to their homes to increase the quality of life, like adding a new primary bathroom or upgrading the kitchen, it’s helpful to know which projects also contribute to the future resale value of your home.

What’s notable is that resale value and livability are no longer seen as competing goals. Many of today’s highest-return projects are those that make homes more comfortable, efficient, and functional right now, while also aligning with what future buyers are actively seeking.

In addition to upgrading the front door, closet renovations yield one of the strongest returns on investment (83% of the value recovered) because buyers gravitate toward clean, functional spaces. Also in the top 10 are new vinyl windows (74%), which increase comfort, reduce outside noise and improve efficiency.

Converting a basement to a living area (71%) to create more usable square footage inside the home adds value, along with making minor kitchen upgrades (60%) or renovating a bathroom (50%) with modern, energy-efficient appliances, updated hardware, paint colors and lighting.

Top-agent-recommended projects to increase the value of your home also include painting the entire house, followed by painting one room, new roofing, a kitchen upgrade or a bathroom renovation.

However, REALTORS® say it’s not just major upgrades that buyers notice.

Even small home upgrades can increase property value

Some smaller projects punch above their weight because they’re highly visible, relatively affordable, and easy for buyers to appreciate immediately. Unlike major renovations, they don’t require buyers to imagine future improvements. They can see and feel the impact right away.

Paint a room in your house or even one wall in a moody hue, like mocha, mahogany, navy blue or emerald green. Or select a standout wallpaper, such as a textured neutral, small-scale patterns or nature-inspired prints.

Experts say that these tones can create a sense of comfort, making a home feel lived-in rather than cold and empty. And deep, grounding shades can add sophistication and give spaces a polished, high-end look. An added benefit is that these deep shades make a statement, helping potential buyers form a connection with the home and making sure they don’t forget it.

REALTORS® also suggest updating your home’s lighting as an easy win. Bright rooms make spaces look larger. You can replace old bulbs with LEDs to make your home feel more modern, add dimmer switches or replace outdated fixtures. If you really want to go the extra mile, spring for underlighting in your cabinets and shelves or ambient lighting to create a spa appeal in your primary bathroom.

Larger home upgrades that yield returns

More and more, buyers are looking for turnkey, move-in ready homes with Instagram-worthy appeal.

According to REALTORS®, even modest kitchen upgrades can deliver strong returns on investment. Zonda’s 38th Cost vs. Value Report underscores this point: a minor kitchen remodel is the only interior project to rank in the top five for return on investment, highlighting the enduring importance of a functional, livable kitchen. These upgrades can include repainting or resurfacing existing cabinets and updating hardware. Swapping dated countertops for buyer-friendly materials, such as quartz or granite, refreshing the backsplash and upgrading appliances.

Energy-efficient homes also raise buyer appeal and potential home value. In particular, U.S. Energy Information Administration data shows that household energy consumption and costs remain a persistent concern for many homeowners, supporting the value of energy-efficiency upgrades in resale decisions. The addition of high-performance windows or exterior doors, like the steel or fiberglass doors mentioned above, as well as updated siding, are great additions that increase your home’s efficiency and value.

Today’s homebuyers are also willing to pay a premium for wellness spaces. Wellness encompasses physical well-being, like clean air, water and access to spaces that encourage movement and mental health, like quiet corners and restorative bathrooms.

Buyers who prioritize wellness are looking for things like modern, well-equipped kitchens, energy-efficient insulation, HVAC and lighting, water and air filtration systems and solar battery storage or backup power generators. These trends are especially relevant in the Chicagoland suburbs, where move-in-ready homes command a premium.

Exterior spaces also increase home value

Moving to exterior improvements, decks, patios and outdoor living rooms showcase the home as an extension of indoor living. Think beyond a sitting area to incorporate an outdoor kitchen, entertainment area or even a workout center. You can also attach an outdoor living space to your home, by creating a covered or screened-in porch, sunroom or pergola.

Features like mounted outdoor TVs and lounge spaces are not only becoming more popular–even in Illinois–they’re also increasing property value. Outdoor living spaces, from decks and patios to outdoor kitchens, fire pits and lounge areas, are widely recognized by designers and agents as features that extend usable living space and boost buyer appeal.

Fresh mulch and manicured beds also contribute to a home’s curb appeal, along with low-maintenance plants. Then, just like indoor lighting, outdoor lighting along the entryway walk, uplighting the trees or highlighting architectural features creates an element of sophistication.

While all of these upgrades will bring you joy today, they are also likely to bode well for the future resale value of your home.