Realtors® are often asked by potential sellers what they would recommend be fixed prior to the seller putting their home on the market. There are no pat answers to these types of questions because each property is different, every circumstance is different, and every Realtor® has a different style or take on the question. Some are motivated to just get a sale, so asking the seller to spend, spend, spend is the first recommendation they make. Of course, any home sells faster and usually at top dollar when everything is in tip-top shape, but is spending a lot of money on fix-up items really what is best for the seller’s bottom line?
The National Association of Realtors® issued a 2025 Remodeling Impact Report showing the top home projects that brought joy to the homeowner and the projects that brought in the most return on investment when the home was sold.
NAR calculated a “Joy Score” for each type of home improvement project. The three projects that received a perfect score are adding a primary bedroom suite, a kitchen upgrade, and new roofing. Close behind are bathroom renovation and interior paint. These projects may not bring the most return on investment, but they will make living in your home more enjoyable and add to the appeal for a potential buyer.
NAR also listed the projects that had the highest return on investment by calculating a Recovered Project Cost percentage. Here are a few of the top projects: new steel front door (100%), closet renovation (83%), and new vinyl windows (74%). A few others farther down the list include basement conversion to living area (67%), kitchen renovation (60%), and a new primary suite (54%).
Almost all of the projects did not recover the amount spent on the renovation. If you were to renovate your kitchen and it cost $30,000, according to NAR’s research, it would only recoup 60% of that, increasing the value of your home by $18,000. The statistics for most renovation projects are not that favorable for the homeowner!
You probably won’t get your money back on most remodel investments. But look on the bright side! You get to use those improvements until your home sells, and they may help your home sell faster!
Those are all things to consider when you are weighing the cost vs. the benefits of any remodel. Keep in mind that remodeling or upgrading the quality of materials is a different concept than fixing broken items such as windows, water damage, or worn flooring. Repairing items like those (deferred maintenance) is like fixing the brakes on your car. It doesn’t make it worth any more, but it is certainly necessary!
The takeaway is to be mindful when choosing renovations—you most likely won’t get your money back out of upgrades.