Best Home Improvements to Increase Value

Whether you’re thinking of selling in the next six months or a few years down the road, remodeling with return on investment (ROI) in mind is a smart financial move. Few investments recoup more than 100% of their cost, but collectively, a handful of high-quality, functional and cohesive home improvements can increase buyer interest and resale value. It’s best to make home improvements that serve your current functional needs as well as appeal to future buyers. 

When you're preparing to sell, expect to make at least a couple of improvements before listing. According to Zillow's 2024 Consumer Housing Trends Report, 72% of sellers took on at least one home improvement project to prepare their home for sale.

But not all home improvement projects are created equal; below, we outline what will deliver the best ROI and which low-cost projects you shouldn’t miss.

Best ROI home improvements in 2025

If you’re looking for home improvements that will pay off when you sell, replacing your garage door could get you a huge return on your investment, according to Remodeling Magazine’s 2024 Cost vs. Value Report. Buying and installing a new garage door costs an average of $4,513 and has a resale value of $8,751. That's a whole 194% return on your investment — the project with the highest ROI on the magazine's list.

After a garage door, the biggest returns nationwide are associated with the following 10 home improvements, according to the report.

1. Entry door replacement (steel)

• Cost: $2,355
• Resale: $4,430
• Recoup: 188%

2. Manufactured stone veneer

• Cost: $11,287
• Resale: $17,291
• Recoup: 153%

3. Grand entrance (fiberglass)

• Cost: $11,353
• Resale: $11,054
• Recoup: 97%

4. Minor kitchen remodel (midrange)

• Cost: $27,492
• Resale: $26,406
• Recoup: 96%

5. Siding replacement (fiber-cement)

• Cost: $20,619
• Resale: $18,230
• Recoup: 88%

6. Deck addition (wood)

• Cost: $17,615
• Resale: $14,596
• Recoup: 83%

7. Siding replacement (vinyl)

• Cost: $17,410
• Resale: $13,957
• Recoup: 80%

8. Bathroom remodel (midrange)

• Cost: $25,251
• Resale: $18,613
• Recoup: 74%

9. Deck addition (composite)

• Cost: $24,206
• Resale: $16,498
• Recoup: 68%

10. Window replacement (vinyl)

• Cost: $21,264
• Resale: $14,270
• Recoup: 67%

Best low-cost home improvements for resale

You don’t have to spend a lot of money to make your home more appealing to buyers — and doing so can make a big difference.

Consider these lower-cost projects that can offer some bang for your buck:

New interior paint

Most homes have natural wear and tear, a few dings on the walls or nail holes remaining where art used to hang. These imperfections are particularly noticeable in marketing photos and virtual tours. A new coat of paint gives your home a fresh and updated look for shoppers.

Zillow’s research found that 32% of sellers in 2024 painted their home’s interior before selling — the most common pre-listing project.

“A fresh coat of paint — particularly in the right color — can deliver a powerful signal to potential buyers that a home is well-maintained and contemporary,” explains Zillow home trends expert Amanda Pendleton.

Additional Zillow research found that painting certain rooms certain colors can help your home sell for more. For example, an olive green kitchen can get you an extra $1,600 more compared to other colors.

Curb appeal

The first thing buyers will see, both online and in person, is your home’s exterior. Whether they’re viewing your exterior photo in an online listing, driving by, or attending a private tour or open house, it’s imperative that your home makes a good first impression. Landscaping was one of the most commonly completed projects for sellers in 2024 (25%), but there are other important curb appeal projects, too.

Paint your front door: Painting your front door can have a big impact. Buyers prefer black front doors to those painted gray, and would offer $6,450 more for it.

Paint your home’s exterior: Making the entire exterior pop with a new coat of paint can help, too. Nearly one in five sellers does this before selling, according to Zillow’s research. Time is also money depending on when you're selling and why; there are numerous low-cost curb appeal projects that can be done in just a weekend, including upgrading your house numbers or sealing any driveway or walkway cracks.  

Smart home technology

According to Zillow's 2024 Consumer Housing Trends Report, 36% of buyers rated smart home capabilities as highly important in their home search.

Add a smart thermostat and smart lights: Smart thermostats and lights are popular and relatively easy additions that can save you money on energy bills. Zillow’s 2024 features that sell analysis found that homes with smart lighting were saved 3% more on Zillow.

Small bathroom updates

You don’t need to rip out tile or add all new fixtures to give your bathroom a face-lift. In fact, over a quarter of sellers made improvements to their home's bathroom before selling, and they can be simple fixes.

Swap out dated lighting: Replace the vanity lights for a more updated look.

Re-caulk or reglaze the tub: This can be a more budget-friendly alternative to replacing an outdated tub entirely.

Flooring

Replacing or repairing carpets and flooring is another common task, taken on by 20% of sellers. Here are a few other improvements to consider:

Deep clean flooring: At a minimum, deep clean your existing flooring. It'll give your floor a nice new shine that will show your home has been well-cared for.

Correct flooring damage: Buff out or refinish hardwoods, especially if there are visible scratches or stains.

Install heated flooring: If your flooring needs replacement, consider heated flooring or radiant heat. Homes with this feature received 2% more saves and 3% more shares on Zillow.

Renovations that won't add value in every market

Not every home improvement project is guaranteed to attract more buyers or give you a good ROI, even if it's something you enjoy while you're still living in the home. If you're renovating with the goal of eventually selling, you'd be wise to avoid the following upgrades:

Swimming pools

Pools are a polarizing topic for buyers — some buyers love a home with a pool, but many others see it as a safety issue or a huge maintenance burden. You can weigh the pros and cons of having a pool for yourself.

Luxury upgrades

It depends on your real estate market and your specific neighborhood, but super high-end touches like professional-grade appliances and marble countertops may not be something buyers are willing to pay extra for.

High-end landscaping

Similarly, investing in expensive landscaping and water features doesn't always pay off, as buyers can see them as a hassle.

Minimum repairs: What to fix before selling a house

Small repairs and maintenance are often needed to show buyers that you've taken good care of the home. These small efforts can make a big difference when it comes to how long it takes to sell your home and how much it sells for. And it can streamline the negotiation process since your buyer won't have to request repairs as a result of their inspection.

Consider tackling these projects before taking on bigger improvements:

• Replace broken mechanicals, like your HVAC system or appliances.
• Remove peeling wallpaper and repaint.
• Take care of weeds and overgrown landscaping.
• Repair broken or leaky plumbing.
• Replace cracked tiles.

Not sure what those must-do repairs are for your specific home? A pre-inspection can give you a good idea of the issues buyers are going to care about.

How to budget for renovations to increase home value

Before researching renovations that might add the most value to your home, decide how much you can afford to spend and how you'll pay for the renovations.

All-cash home improvements

If you can afford it, paying cash is your best option, as you'll avoid debt and interest payments. But the drawback is that the money you spend will be tied up until you sell the home.

Using financing for renovations

Many homeowners opt to finance their remodeling project — especially if they're planning on selling shortly after finishing the project — as they'll be able to pay the loan back in full after closing.

There are a few different ways to pay for your project, but note that most lenders require that your remaining mortgage balance plus the amount you borrow total less than 90% of your home's pre-improvement value. For example, if you owe $270,000 on your $350,000 home, lenders would consider loaning you up to $45,000 ($315,000 is 90% of $350,000).

Here are two common financing options:

Second mortgage

Much like your first mortgage, a second mortgage allows you to borrow a fixed amount of cash, in a lump sum, with a fixed interest rate.

Home equity line of credit (HELOC)

A HELOC operates like a revolving credit line, secured by the equity in your home. You borrow what you need as you go, but you're borrowing with a variable interest rate, so costs can go up (or down) over time.

What if I can't afford home improvements before listing?

If your budget won't allow you to complete any repairs or improvements before listing, you have three options:

Sell as-is: When you sell as-is, you make it clear to buyers that you won't be making any repairs before closing. You'll want to adjust your listing price to accommodate for that fact. Note that buyers may try to negotiate the price even lower, especially if the property is in bad shape.

Offer a credit at closing: If your buyer's inspection uncovers any issues in the home, you can offer a credit to the buyer that will allow them to make the repairs after closing. Often, the credit the buyer requests ends up being higher than what the cost would have been if you had completed the repairs ahead of time.