10 Home Improvements That Add Value to Your Home (2025)

What home updates add value? 

Some home updates are all about making your home more comfortable for you and your family.  A great example of this would be, putting in a swimming pool. It may not increase your home value by $50,000, but it will give you and your family many summer afternoons of fun.  While, other home improvements are just as much about increasing your property value as they are about making your house homier.

If you’re thinking of selling in the relatively near future, you need to spend your home update budget where it counts. These 10 home updates will net you the biggest increases in property value and the highest returns on your investment.

1. Front Yard Landscaping

The front yard is often one of the first impressions of a home - Landscaping can increase your home’s curb appeal, and that can translate into an increase in property value of 5.5 to 12.7 percent. Mature plantings will net you the biggest return on investment, so ideally, you’ll begin landscaping long before you put your home on the market. A cohesive landscaping plan is a sure fire way to increase curb appeal, so even if you can’t afford to hire a professional landscaper, you should take the time to plan out your new landscape before you plant anything.

2. Kitchen Renovation

Many homeowners ask how much value does a kitchen remodel add? The truth is even a minor kitchen remodel can return 97 percent of the money you spend when it’s time to sell. Refacing cabinets, installing new countertops and floors, redoing the lighting, then installing a new sink, fixtures and range will cost roughly $15,000. In most cases, people look for bigger and more updated kitchens from what they already have. A kitchen update might just be able to seal the deal for your property when it comes time. 

Thinking about DIY-ing a Kitchen Remodel? 

If you have the necessary skills, tools, and time, a DIY kitchen remodel can be a rewarding and cost-effective way to update your space. However, for extensive renovations or complex tasks, hiring professionals is a better option to ensure quality and safety.

Consider the scope of work: Minor updates (e.g., painting, new hardware) are manageable DIY, but major tasks (e.g., moving walls, complex plumbing) may require professionals. It requires significant physical labor, as well as basic carpentry skills, so make sure you’re adequately equipped before attempting to tackle a project like a kitchen remodel. 

If your appliances are on the older side, we recommend a Home Warranty to help cover any malfunctions or breakdowns.

Explore What’s Covered in The Kitchen

3. Bathroom Remodel

Bathroom remodels are another expensive update that buyers like to see already done – so much so that a minor bathroom remodel will actually increase your property value slightly. If you spend $20,420 to remodel a bathroom, you’ll get back about $13,717 at resale, on average. A complete bathroom redo might cost about $64,743, but you’ll recoup about 60 percent of that when you sell.

How Much is an Average Small Bathroom Renovation?

The average cost of a small bathroom renovation typically starts around $6,500, but this will vary depending on factors like location, materials, and scope of work. According to the Cost vs. Value report by Remodeling Magazine the national average in 2024 was $24,606.

Do I Need a Permit to Renovate My Bathroom?

Whether or not you need a permit to remodel your bathroom depends on the scope of the work. If you’re making minor repairs, like painting, tiling, or installing new faucets, you probably won’t need a permit. However, if you’re making changes to the plumbing, electrical system, or HVAC, that will likely require a permit. Be sure to check with your local municipality to avoid code violations.

How Long Does a Bathroom Renovation Take?

The duration of a bathroom renovation can range from 1-2 weeks for cosmetic updates, to 4-8 weeks or more for full remodels. Partial renovations, which may include replacing vanities or retiling, generally take 2-4 weeks. The timeline can be influenced by permits, the availability of materials, scheduling of tradespeople, and any unexpected issues that arise, like water damage or mold. Effective planning and coordination are key to keeping the project on track.

4. Adding a Deck

You’ll recoup about 75 percent of the cost of adding a 16x20 ft. wooden deck, although it varies somewhat depending on where you live – in the West, you’ll get back 100 percent of what you spent on a new deck, but in the South, where the air feels like hot soup, a deck addition will recoup about 83 percent of its cost.

5. Finishing a Basement

A finished basement will recoup an average of about 70 percent of its cost at sale. You may be able to recoup more than that in areas where basements are less common, such as in the West, but your ROI on a basement remodel will run closer to average in areas where basements are pretty standard. In the meantime, a finished basement can serve as a family rumpus room or a place to entertain. Needless to say if you’re planning on building a finished basement avoid doing this in areas where floods are common. Basements can be prone to flooding in these areas, and that can ruin your investment. 

6. Replacing Windows

Replacing your outdated windows with new ones is a good way to attract buyers and will get you back about 73 percent of what you spent at resale. If you live in a major city, you might even get back more than what you paid for your replacement windows when you sell. In desert climates, install low-e windows.

7. Replacing Your Garage Door

The average garage door replacement costs $3,611, and nets back $3,520, assuming it’s a two-car garage. A new garage door boosts curb appeal, making it one of the most valuable home updates in terms of ROI.

8. Exterior Door Replacement

Like new garage doors, new exterior doors boost your home’s curb appeal. 20-gauge steel doors also enhance your home’s security. The average exterior door replacement costs $1,826 and recoups $1,368.

9. New Siding

Your house can be the nicest one on the block in every other way, but if the siding is old and worn out, the whole house will look dilapidated. But installing new siding is like giving your home a facelift. For about $16,000, you can replace 1,250 feet of siding, and you’ll get back about 75 percent of that when you sell.

10. A Working Fireplace

If you have a working fireplace in your home, keep it. If you have a non-working fireplace in your home, it may be worth the cost of getting it in working order again. Each functioning fireplace in your home can add about 12 percent to its value.

Some home updates will improve your property value more than others. Before you start paying for home improvements, do your research and find out which ones will pay off the most when you put your home on the market. With careful planning and a little luck, you could end up getting much more for your house than you’d hoped.

Home Improvements That Do Not Add Value

Conversely, there are some upgrades that do not tend to provide a good ROI. These home improvements typically do not add value, and may even detract from it:

• Swimming pools: Like we mentioned earlier, swimming pools can be a great investment for your family, but keep in mind that some buyers may view it as an added maintenance cost or even a safety hazard. This is especially true in colder climates.
• Excessive DIY projects: DIY projects can turn out nice if you know what you’re doing, but it’s important that you are realistic about your skill level. Poorly executed tiling, painting, or remodeling runs the risk of looking amateur-ish and turning off potential homebuyers. Similarly, unpermitted work can cause problems with the building code, reduce the total number of rooms, and cause a headache when selling.
• Luxury upgrades in modest neighborhoods: High-end appliances, marble floors, or expensive fixtures can be a poor investment if they don't match the overall style and value of homes in the area. Similarly, Over-the-top upgrades to HVAC, plumbing, or electrical systems may not provide a good ROI if they're unnecessary for the area.

How to Get a Home Renovation Loan

To secure a home renovation loan, first assess your renovation needs and determine the total cost of the project. Then, check your credit score, as it will affect your eligibility and the interest rate you receive. 

There are various loan options available to homeowners, such as home equity loans, home equity lines of credit (HELOCs), personal loans, cash-out refinancing, or FHA 203(k) loans, which cater specifically to renovation projects. Once you've identified the best loan type, compare different lenders' interest rates, terms, and fees. Gather the necessary documentation, including proof of income and renovation estimates, and apply for the loan.

After approval, carefully review the loan offer, considering the interest rate, repayment terms, and any additional fees. Upon accepting the loan, you will receive the funds either as a lump sum or a line of credit, depending on the loan type. With the funds in hand, you can start your renovation project, ensuring you stay within budget and track all expenses. Be sure to adhere to the agreed repayment schedule to avoid late fees or penalties. 

With all the time and money you spend to increase your home's value, make sure you protect yourself from unexpected repair costs. Consider a home warranty from American Home Shield. We have plan options for every household and budget and cover up to 23 home systems and appliances - AC, heating unit, water heater, electrical, plumbing, refrigerator, dishwasher, laundry appliances, and more.

AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.