The Features Buyers Are Looking for Right Now: How Much Value Does a Remodel Bring
As many of you know, 2026 Raymond and finally remodeled our kitchen. So how much did we add to the home's value? Probably at least 1/2 the cost of the work completed. Check out this article to learn more about what to remodel if selling your home is in your future.
Today's buyers are looking beyond beautiful finishes and trendy designs. They are considering how a home will work for their everyday lives, what it will cost to maintain, and whether it is move-in ready.
The National Association of REALTORS® (NAR), in partnership with the National Association of the Remodeling Industry (NARI), explored these questions in its 2025 Remodeling Impact Report. The findings offer valuable insight for homeowners considering renovations, buyers evaluating properties, and sellers deciding where to invest before putting a home on the market.
The report also highlights an important distinction: the renovations that bring homeowners the most happiness are not always the ones that recover the most money at resale.
Let's look at what the research tells us about the features and improvements that deserve attention.
The short answer is that most projects add less value than they cost
If a homeowner spends $40,000 on improvements, it is unlikely that the home will sell for exactly $40,000 more because of that work. Resale value does not work like a receipt.
A better way to think about the return is in three layers:
Direct resale value
The amount buyers may be willing to pay above a similar home without the improvement.
Marketability
The way the project helps the home show better, attract more buyers, and reduce days on market.
Risk reduction
The way repairs, newer systems, and clean finishes make buyers feel safer about making a strong offer.
That third layer matters more than many sellers realize. A buyer may not pay a premium for a new water heater, but an old leaking one can lead to lower offers, repair requests, or contract trouble. In that case, the value is defensive. It protects the sale.
The condition of the home before the project
A dated but well-maintained home is different from a home with damage, worn finishes, and deferred maintenance.
If the house already looks clean and current, a major renovation may add only a modest bump. If the house has obvious problems, basic improvements can remove objections and help the home compete.
For example, replacing stained carpet, repairing damaged drywall, and repainting may do more for a sale than adding a dramatic feature wall or custom built-ins.
The price range of the neighborhood
Buyers compare homes within a local price band. If most nearby homes have updated kitchens, a dated kitchen can hurt. If most nearby homes are modest and functional, a high-end chef’s kitchen may not earn back its cost.
The goal is not to create the fanciest home on the block. The goal is to meet or slightly exceed buyer expectations for the area.
Projects that often add the strongest resale appeal
No improvement guarantees a specific return, but some categories tend to perform better because they improve spaces buyers care about most.
1. A Functional Kitchen
The kitchen remains one of the most important spaces in a home. Buyers want practical storage, useful counter space, quality appliances, an efficient layout, and room to gather.
The 2025 Remodeling Impact Report found that 48% of REALTORS® had observed increased demand for kitchen upgrades over the preceding two years. Additionally, 30% recommended a kitchen remodel before listing a home.
A kitchen renovation also earned a perfect homeowner satisfaction score of 10 out of 10 in the report.
However, a complete kitchen renovation and a minor kitchen upgrade each had an estimated cost recovery of 60%, according to NARI remodeling professionals.
What this means for homeowners: You don't necessarily need to undertake a major renovation to make your kitchen more appealing. Fresh paint, updated hardware, improved lighting, functional storage, and well-maintained appliances may be worth considering before committing to an expensive overhaul.
2. Flexible Spaces That Adapt to Your Lifestyle
Today's homeowners often need rooms that can serve multiple purposes. A spare bedroom might become a home office, a bonus room could function as a workout space, and a finished attic or basement might provide room for guests or hobbies.
The 2025 report found that converting a basement into living space had an estimated cost recovery of 71%, while an attic conversion had an estimated recovery of 67%.
These figures are estimates, not guarantees. Actual results depend on the property's condition, local market conditions, renovation quality, and buyer demand.
What this means for homeowners: Before adding square footage, consider whether you can make better use of the space you already have. A well-organized bonus room or finished area may improve livability without the expense of a large addition.
3. Outdoor Living and Curb Appeal
Outdoor spaces can extend the enjoyment of a home. Decks, patios, covered porches, and thoughtfully maintained yards provide places to entertain, relax, garden, and spend time with family.
While the 2025 Remodeling Impact Report does not establish a universal resale return for every type of outdoor living project, its findings reinforce the importance of balancing personal enjoyment with realistic expectations about resale value.
First impressions also matter. REALTORS® frequently recommend relatively straightforward improvements before a home goes on the market, including painting and roofing work.
What this means for homeowners: Start with the basics. Clean outdoor areas, maintain landscaping, repair visible damage, and make entrances welcoming. On properties with special lifestyle features—such as lakefront homes, mountain views, or usable acreage—make sure those features are clean, accessible, and easy for prospective buyers to appreciate.
4. A Dedicated Home Office or Work Area
A dedicated office can be attractive to buyers who work remotely, manage a business, or simply need a quiet place to focus.
Not every home needs a separate office. A spare bedroom, a well-designed desk area, or a quiet bonus room may provide the flexibility a buyer wants.
The broader lesson from remodeling research is that improving how a home functions can be just as important as improving how it looks.
What this means for homeowners: If you already have a suitable space, make it easy to imagine its potential. Declutter the room, improve lighting, and demonstrate how the space can serve more than one purpose.
5. Storage That Makes Everyday Life Easier
Closets, pantries, mudrooms, linen closets, and organized laundry areas may not be the most glamorous features in a home, but they can make a meaningful difference in daily life.
The 2025 Remodeling Impact Report estimated that a closet renovation could recover 83% of its cost at resale, placing it among the strongest-performing projects in the report.
That makes storage an especially interesting improvement for homeowners who want to enhance organization without undertaking a major renovation.
What this means for homeowners: Before investing in custom cabinetry or expensive built-ins, consider simpler solutions. Decluttering, adding practical shelving, improving closet organization, and making the most of existing storage can help a home feel more spacious and functional.
6. Energy Efficiency and Major Home Systems
Buyers are increasingly conscious of the ongoing costs of homeownership. Heating and cooling systems, insulation, windows, roofing, and appliances all influence the experience of living in a home.
The 2025 report identified improving energy efficiency as a primary reason for remodeling for 19% of surveyed consumers.
Roofing also stood out for homeowner satisfaction, earning a score of 10 out of 10. In addition, 43% of REALTORS® reported increased demand for new roofing over the preceding two years.
What this means for homeowners: You may not need to replace every major system before selling. Instead, maintain equipment, address known problems, keep service records, and be prepared to explain the age and condition of major components. If you are considering a replacement, obtain estimates and evaluate the likely benefits in your particular market.
7. Updated Bathrooms
Bathrooms are another area where cleanliness, functionality, and maintenance matter.
Buyers often appreciate good lighting, practical storage, updated fixtures, adequate ventilation, and surfaces that are in good condition. A bathroom does not necessarily need luxury finishes to make a positive impression.
The 2025 report found that 35% of REALTORS® had observed increased demand for bathroom renovations over the preceding two years.
However, a bathroom renovation had an estimated cost recovery of 50% in the report. This illustrates why an expensive remodel should not automatically be considered a profitable pre-sale investment.
What this means for homeowners: Address repairs first. Fresh caulk, clean grout, updated hardware, good lighting, and a fresh coat of paint may be sensible starting points before considering a full renovation.
8. A Practical Floor Plan and Move-In-Ready Condition
A beautiful home can still be difficult to live in if its layout does not work. Buyers consider room flow, furniture placement, privacy, storage, and how well spaces support everyday routines.
Condition is also important. According to the 2025 Remodeling Impact Report, 46% of home buyers were less willing to compromise on a home's condition when purchasing.
That finding gives sellers a reason to look carefully at deferred maintenance and unfinished projects before listing.
What this means for homeowners: Address visible maintenance issues, finish incomplete projects where practical, and make sure rooms are clean and easy to navigate. You may achieve more by presenting a well-maintained home than by spending heavily on fashionable finishes.
9. Low-Maintenance Features
Many buyers value convenience. Durable materials, manageable landscaping, well-maintained mechanical systems, and easy-care finishes can make homeownership feel less demanding.
The right improvements depend on the home and the people most likely to buy it. A property marketed as a retirement retreat may benefit from different features than a home designed for a growing family.
What this means for homeowners: Focus on the improvements that solve real problems. Repair worn surfaces, maintain major systems, and choose durable materials when replacement is necessary. Avoid assuming that every new product or upgrade will command a premium from buyers.
10. Location and Lifestyle Still Matter
No renovation can change a home's location or its relationship to the surrounding community.
Buyers consider access to work, shopping, restaurants, recreation, schools, and the amenities that support their preferred lifestyle.
For some, that means a neighborhood close to everyday conveniences. For others, it means a mountain view, usable acreage, a golf course, or a home on the water.
For properties on Lake Hartwell, for example, the waterfront setting and access to outdoor recreation may be central to a property's appeal. Features such as dock access, usable outdoor space, and the way the home connects to the lake can be important parts of its lifestyle story.
What this means for homeowners: Highlight the features that make your property distinctive. Improvements should support the home's strongest selling points rather than attempt to imitate every national design trend.
What the 2025 Remodeling Impact Report Says About Return on Investment
One of the report's most useful lessons is that the cost of a renovation and the amount recovered at resale are not necessarily the same.
NARI remodeling professionals estimated the following cost recovery for selected projects:
New steel front door: 100%
Closet renovation: 83%
New fiberglass front door: 80%
New vinyl windows: 74%
New wood windows: 71%
Basement conversion to living area: 71%
Attic conversion to living area: 67%
Complete kitchen renovation: 60%
Minor kitchen upgrade: 60%
Bathroom addition: 56%
New primary suite: 54%
Bathroom renovation: 50%
These are national estimates from the 2025 report, not guaranteed returns for an individual property. Actual results can vary considerably by location, project scope, material choices, and market conditions.
The report also found that homeowners often value improvements for reasons beyond resale. Adding a primary bedroom suite, upgrading a kitchen, and installing a new roof all received homeowner satisfaction scores of 10 out of 10.
That distinction matters. A renovation can be worthwhile because it improves your life, even when you do not recover every dollar at resale.
So, What Should You Improve Before Selling?
Before committing to a major renovation, take a step back and consider three questions:
1. What does the home actually need? Address maintenance issues, visible wear, and functional problems before investing in cosmetic upgrades.
2. What are buyers in your local market looking for? National statistics provide useful context, but buyer expectations vary by location, price range, property type, and current competition.
3. How much of the investment might you recover? Obtain realistic contractor estimates and compare the likely benefits with the costs. If you plan to sell soon, prioritize improvements that address buyer concerns and help the home compete effectively.
The Biggest Feature? A Home That Fits Its Next Owner
The 2025 Remodeling Impact Report offers a valuable reminder: homeowners remodel for many reasons, including better functionality, durability, improved appearance, and personal satisfaction.
The most important improvement is not always the most expensive one. A thoughtfully organized closet, a well-maintained roof, a functional kitchen, or a welcoming entryway may be more practical than a major renovation that reflects a passing trend.
For homeowners, the goal is to make informed decisions about where to invest. For buyers, it is to look beyond finishes and consider how a property will support their lives. And for sellers, it is to understand which features make their home competitive in the market where they are selling.
Before you renovate, consult a local real estate professional who understands your property type and market. A REALTOR® can help you evaluate comparable homes, identify the improvements most likely to matter to buyers, and distinguish between necessary repairs, sensible updates, and expensive projects that may not pay off.
Source: National Association of REALTORS® and National Association of the Remodeling Industry, 2025 Remodeling Impact Report.
Kitchen updates work best when they stay practical
A kitchen upgrade does not have to mean moving walls, replacing every cabinet, and buying premium appliances.
For resale, a smaller update can be more effective:
Paint or refinish cabinets if the layout is good
Replace dated hardware
Add a clean backsplash
Update lighting
Choose durable counters
Replace damaged or mismatched appliances
Fix worn flooring
A full kitchen renovation can still make sense, especially if the existing kitchen is poorly laid out or badly worn. But for sellers, restraint usually helps. A buyer may love a beautiful kitchen, but they may not value every premium choice at its full cost.
Bathroom updates should feel clean, simple, and durable
Bathrooms are small, but they carry a lot of emotional weight. Buyers notice old grout, poor lighting, cracked tile, stained fixtures, and weak ventilation.
The strongest resale-friendly bathroom improvements often include:
A new vanity
Better lighting
Fresh mirrors
Modern fixtures
Repaired tile and grout
Neutral flooring
A clean shower or tub surround
A spa-like bathroom can be appealing, but sellers should think carefully before adding expensive custom features. Unusual tile, oversized tubs, and specialty fixtures can limit broad appeal.
Curb appeal can change the entire showing
Exterior work can create value before a buyer enters the home. A clean entry, healthy lawn, trimmed shrubs, fresh mulch, and a well-painted front door make the property feel cared for.
Curb appeal upgrades are often lower cost than interior renovations, which can make them attractive before listing. They also help photos stand out online.
Good exterior projects include:
Painting the front door
Updating house numbers and lighting
Power washing walkways
Repairing cracked trim
Replacing a damaged garage door
Adding simple landscaping
Cleaning gutters
Repairing fences and gates
Buyers may not list mulch as a reason they made an offer, but a neglected exterior can cause them to assume the inside has problems too.
Improvements that may not pay off when selling
Some projects improve daily life but do not always translate into strong resale value. That does not make them bad choices. It just means they should be done for enjoyment first, not resale only.
Highly custom upgrades
Custom work can be beautiful, but buyers may not share the same taste. Built-in aquariums, themed rooms, bold stone, luxury wallpaper, and unusual layouts can make a home memorable for the wrong reason.
When resale is the goal, broad appeal matters.
Overbuilding for the neighborhood
The most expensive home in the area can be harder to sell. Buyers who can afford a higher-end property may prefer a different neighborhood, larger lot, or newer construction.
If nearby homes have modest finishes, spending heavily on luxury materials may lead to a weak return.
Converting useful spaces
Removing a bedroom, eliminating a garage, or turning a dining room into a permanent specialty space can shrink the buyer pool.
A home office may be valuable, but a bedroom converted with built-ins and no closet may raise questions. Flexible spaces usually sell better than single-purpose spaces.
Pools and luxury outdoor features
A pool can be a major selling point in some warm climates and certain price ranges. In other areas, it can feel like maintenance, insurance, and safety concerns.
Outdoor kitchens, fire features, and elaborate patios can improve lifestyle appeal, but they do not always recoup their full cost. Climate and neighborhood expectations matter.
Repairs often matter more than upgrades
Before choosing finishes, look for problems that may hurt the sale.
A buyer can forgive an older vanity if the home feels solid. They may not forgive a roof near the end of its life, water stains, poor drainage, electrical concerns, or an aging HVAC system.
Common pre-sale repairs include:
Fixing roof leaks
Servicing HVAC equipment
Repairing plumbing leaks
Addressing drainage issues
Replacing broken windows
Fixing damaged siding or trim
Repairing unsafe stairs or railings
Correcting obvious electrical problems
Removing signs of water damage
These items may not create flashy listing photos, but they can keep the deal together. Inspection issues can lead to credits, renegotiation, delays, or canceled contracts.
A smart seller usually handles visible maintenance issues before cosmetic upgrades. Fresh counters will not distract from a musty basement or a stained ceiling.
How to decide what to improve before listing
The best pre-sale plan starts with the market, not personal preference.
Compare similar homes first
Look at active, pending, and recently sold homes in the area. Focus on homes with similar size, age, layout, and lot type.
Ask:
What finishes do the strongest listings have?
Which homes sold quickly?
Which homes sat on the market?
Are buyers paying more for updated kitchens?
Do dated bathrooms seem to hurt sale prices?
Do homes with strong curb appeal photograph better?
This helps separate useful projects from wish-list projects.
Get input before spending heavily
A local real estate agent, appraiser, contractor, or home stager may see things a homeowner misses. They can often point out the few changes most likely to affect buyer perception.
Before a major project, get multiple estimates and ask direct questions:
Will this improvement match the neighborhood?
Is the current condition likely to hurt the sale?
Would a smaller refresh achieve most of the benefit?
Are permits needed?
How long will the work take?
Could delays affect the listing timeline?
Timing matters. A project that drags on for months may create carrying costs, stress, and missed market opportunities.
Set a resale budget
A resale budget should be practical. It should leave room for surprises.
For example, if the goal is to list soon, the budget might focus on paint, repairs, cleaning, lighting, and landscaping. If the home is months away from listing and has a serious flaw, the budget may include a larger project.
Avoid spending so much that the home must sell at the very top of the market just to break even.
A practical way to estimate your likely return
There is no perfect calculator for resale value, but a simple process can help.
Estimate the full project cost
Include labor, materials, design fees, permits, cleanup, temporary housing if needed, and a cushion for surprises.
Estimate the value gap
Compare your home to similar homes that already have the improvement. The price difference can suggest what buyers may pay.
Adjust for quality and timing
A well-finished update completed before listing may help. A half-finished or rushed job can hurt.
Account for market conditions
In a hot seller’s market, buyers may accept dated finishes. In a slower market, updated homes may stand out more.
Consider non-price benefits
Faster sale, fewer repair requests, and better showing feedback can matter even if the price increase is modest.
Here is a simple example.
A homeowner spends $12,000 on paint, lighting, minor bathroom repairs, landscaping, and new carpet in worn bedrooms. Similar updated homes appear to sell for $10,000 to $18,000 more than dated homes nearby. In that case, the project may be reasonable because it improves both presentation and market position.
By contrast, a $90,000 luxury kitchen in a neighborhood where buyers expect moderate finishes may be harder to justify if selling soon.
When remodeling for resale makes the most sense
A pre-sale project usually makes the most sense when it fixes a clear weakness. It should make the home easier to understand, easier to finance, easier to insure, or easier to picture as move-in ready.
Good candidates include:
A dated kitchen that looks much older than nearby competition
A bathroom with damaged surfaces or poor function
Worn flooring throughout main living areas
Bad paint colors that make rooms feel dark
Exterior neglect that hurts first impressions
Repairs that are likely to show up during inspection
A project is riskier when it is based on personal taste, luxury preferences, or the hope that buyers will pay full retail cost for the work.
The safest improvements tend to be visible, neutral, durable, and properly completed.
The best return may come from doing less, better
The strongest resale plan is often a focused one. Instead of renovating everything, make the home feel clean, cared for, and aligned with buyer expectations.
That might mean choosing a bathroom refresh over a full gut job. It might mean painting cabinets rather than replacing them. It might mean fixing drainage before installing new floors. It might also mean skipping a project because the numbers do not support it.
When people talk about remodeling returns, they often focus only on the sale price. A better question is whether the work helps the home sell with fewer objections and less friction.
If selling is the goal, start with repairs, then presentation, then selective upgrades. Spend where buyers will notice, avoid choices that are too personal, and keep the neighborhood price range in mind. The right improvements can add value, but the smartest ones also protect the sale.
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