6 Home Improvements That Pay Off at Resale

2. Minor kitchen upgrades  

Would-be buyers can live with a move-in-ready kitchen that needs upgrades, knowing that someday they will make it their own. But if it’s already completed and not to their liking, it could be a deal-breaker. “Kitchens are the number one thing people look at,” says Trish Gesswein, director of listing sales at Houwzer. “Most people are interested in having updated kitchens. We are seeing a trend of people painting cabinets and adding backsplashes to keep costs minimal.” Replacing the hardware on cabinets can modernize an outdated kitchen for budget-conscious homeowners. 

Here is a breakdown of what upgrades cost nationally and the return on investment.

Minor kitchen repair

Cost: $26,790

ROI: 85.7 percent

Major kitchen remodel — midrange

Cost: $77,939

ROI: 41.8 percent 

Major kitchen remodel — upscale

Cost: $154,483 

ROI: 31.7%

3. Fresh coat of paint

Nothing screams old and dated more than out-of-style paint colors. Sure, you may love florals or bright and bold colors, but buyers may not. That’s why Kurt Clason, owner of Clason Remodeling Co. and chairman of the National Association of Home Builders’ Remodelers Council, advises sellers to stick to neutral colors when repainting their home. Buyers want to envision their belongings in the space, and if it’s an off-putting color, that’s much more difficult to do. “People looking to buy a house don’t want to spend time repainting. New paint makes it clean and fresh,” Clason says. If you are a smoker or have pets, purchasing paint with an odor neutralizer can go a long way in getting rid of nasty smells. If you’ve recently painted and have a neutral color, painting the molding is a low-cost way to make your walls pop. 

4. Upgrading your flooring

People got used to staying home during the pandemic and crave comfortable and appealing living spaces. One way to make an outdated room and your resale value shine is to refinish hardwood floors. According to the National Association of Realtors (NAR) Remodeling Impact report, the ROI on refinishing hardwood floors is 147 percent. Installing new wood flooring will get you a 118 percent return. “Some of the projects (seeing good returns) are longer lasting,” says Brandi Snowden, director of member and consumer survey research at the NAR. “Especially over the last couple of years, with more people inside their homes, they are willing to undertake more durable projects.”

5. Staging your home

For budget-conscious homeowners, decluttering and cleaning can significantly boost a home’s appeal. Even well-appointed dwellings will benefit from the removal of extra furniture, pictures and other personalized decorations, and from the scrubbing of floors and walls. If the carpet is old and dingy, consider replacing it. Who knows? Under it there may be hardwood floors that require only polish and staining. “These days, less is more. People need to envision how their things will look in the home,” Gesswein says. “Make it as clean and clutter-free as possible.”

6. Greening your heating and cooling

Energy prices are high and even when they aren’t, price fluctuations make it hard to budget for your heating and cooling bills. Electric heat pumps can fix that. By converting from furnaces and baseboard heaters, you can reduce your electricity use for heating by about 50 percent, according to the U.S. Energy Department.

These systems also dehumidify better than standard air conditioners, which means less need for cooling in the summer. All of which is why this home upgrade has a high return on investment of 103.5 percent, according to the 2023 Cost vs. Value report.  “Knowing you have a heating and cooling system in place that won’t be subject to huge price increases as the winter or summer seasons progress tends to buy ample peace of mind,” says DeKorne.

Editor's note: This article was originally published on March 21, 2022. It has been updated to reflect new information.