Here’s a tough lesson about home ownership and improvement: Not everything you do to spruce up your home will increase your home’s resale value. With kitchen or bathroom updates, you can spend tens of thousands of dollars. Whether you’re ready for that kind of investment or a more affordable project, you’ll likely want to gain not only personal enjoyment, but also a return on your investment when you sell your home one day.
Homeowners considering a home renovation project are turning to real estate agents — especially those who are REALTORS®, members of the National Association of REALTORS® — to find out in advance what’s worth pouring their money into and what they may want to skip.
Home Remodeling Projects: Investment Value and ROI
“Real estate professionals may show hundreds of properties to their clients over the course of a year, so they have a unique perspective on local market trends, home buyer preferences, and home values,” says Samuel Jung, a real estate pro at Century 21 Blue Marlin Pelican in Crestview, Fla. “We can provide homeowners with insight on which renovation projects could add the most value to a home, which projects have the best return on investment, or which cosmetic upgrades would appeal to the most home buyers in the current market.”
After all, 62% of homeowners say they renovated their home mostly to increase its value, according to a 2023 survey from Cinch Home Services, a home warranty company. And 48% hoped the improvements would help them sell their home one day, the survey found.
Jung says homeowners who contact real estate professionals upfront may avoid making improvements that don’t boost the sales price. For example, even in his Florida market, sellers may not completely recover the cost of installing a swimming pool at sales time. In fact, some homeowners may be turned off by the maintenance and operating expenses of a pool.
Kitchen and bathroom renovations tend to offer higher ROI. For example, a complete kitchen renovation would recoup an estimated 60% of the investment at resale, according to NAR’s 2025 “Remodeling Impact Report.” A bathroom renovation may recover 50% of the average renovation cost at resale. A kitchen upgrade and a bathroom renovation made the list of top five remodeling projects that REALTORS® recommend sellers make before selling.
To choose home remodeling projects that will improve your home’s value, you’ll want to consider upfront home buyer preferences and your home seller competition. Real estate pros can give you the inside track on that information.
What Buyers Want in a Kitchen Home Renovation Project
Your kitchen shouldn’t look dated, but it shouldn’t look overly trendy either, advises John Woodruff, REALTOR® and founder of Aethos Real Estate in San Francisco. Kitchens and bathrooms with timeless designs — in neutral colors like whites — can be the safest choice over the long run. Also, high-cost upgrades aren’t always necessary. Woodruff says sometimes just adding a contemporary lighting fixture can help modernize a space without having to gut it.
“Clients call me all the time about what renovations they [should] plan to do and asking whether they have good resale value,” Woodruff says. In one case, he connected his clients, who planned to sell soon, to remodeling professionals with presale renovation company Revive. In his market, where space is at a premium, his clients found removing an entryway closet to expand a kitchen made the biggest difference in the kitchen renovation, he says.
Overall, real estate pros report that home buyers prefer kitchens with light and calming color palettes, white color schemes, and mixed materials (for example, natural wood with stone or mixed metals for fixtures), according to HomeLight’s 2023 Top Agents Insights report, based on a survey of about 1,000 real estate professionals. Agents reported the most popular kitchen upgrades among home buyers as:
- Open concept kitchen with family room
- Kitchen island
- Stainless steel appliances
- Energy-efficient appliances
- Ample drawer and cabinet storage
- Walk-in pantry
- Smart appliances
- Eye-catching or designer backsplash
What Buyers Want in a Bathroom Home Renovation Project
In bathrooms, home buyers are seeking modern yet functional styles with spa-like qualities, according to HomeLight’s survey. Agents identified the most sought-after bathroom upgrades as:
- Double-sink vanity
- Modern lighting
- Rainshower or dual shower head
- Vanity with extra storage
Buyer Preferences for Kitchen and Bathroom Remodeling Projects Can Vary
Your area and price point greatly affect buyer preferences, Jung says. For example, the average home buyer in his market doesn’t list a bathtub as a high priority, but in higher price ranges, a bathtub has become a necessity. In kitchen upgrades, granite countertops tend to be the least expensive; quartz, mid-range; and quartzite, for higher-end homes, Jung says.
Depending on your market, homeowners may find that some remodeling projects could turn buyers off. For example, Jung cites overly personalized color palettes and wallpaper. “It’s still a turnoff in some areas, but in others, wallpaper is making a comeback and offering amazing ROI.”
Beware of DIY Home Remodeling Projects
Homeowners who rely too heavily on DIY to cut costs may end up turning off buyers if the results look less than professional. “The tip-offs for DIY projects can almost always be found if you simply look closely,” Jung says. “Unfortunately, DIYers tend to have a ‘good enough’ mindset when they’re doing these projects and often slack on the fine details. You’ll catch uneven paint, especially around baseboards and ledges, slightly off-center fixtures, or issues with flooring/tiling, especially close to the walls.”
A Presale Renovation Company May Help Boost Resale Value
Many real estate agents are connecting home sellers with remodeling companies to identify home renovations with the highest ROI potential. The remodeling company completes the renovations in tight time frames, and the seller pays at closing from their sales proceeds.
In working with Revive, Woodruff has helped more than a dozen home sellers renovate their properties before selling over two years. In one listing in San Francisco, the sellers invested $160,000 to update the kitchens and bathrooms, along with adding new lighting, paint, windows, and floors. Before renovating, the home was set to be listed for $800,000. After the renovations, Woodruff sold the home for $1.63 million after fielding 14 buyer offers.
Woodruff says on average, the presale renovations with Revive have resulted in $186,000 in additional profit to each of his homeowners who used the service.
Make a REALTOR® Your Remodeling Ally
A REALTOR® can help you make decisions about updating your kitchen or bathroom by doing the following:
Sharing Data and Resources About Home Remodeling Projects
Agents who are REALTORS® have access to proprietary data and tools to help homeowners gauge the value of their home and the value of potential renovations. Jung says he often shares with clients the results of NAR’s Remodeling Impact Reports — annual surveys that offer the estimated return on investment at resale. He also provides a comparative market analysis to show homeowners the current value of homes nearby and to compare the amenities, which could help them avoid overspending on improvements. Another resource from NAR is the REALTORS Property Resource®, which provides REALTORS® with data, trends, and research they can share with you. That way, you can quickly see what's going on in your local market and get answers to your questions.
Letting You Know When Cosmetic Changes Are Enough
Some homeowners may find cosmetic changes, like a fresh coat of paint, are sufficient. In other cases, more substantial improvements — like a kitchen renovation with new cabinets, countertops, and appliances —may offer the highest ROI. “It depends on a homeowner’s budget, neighborhood, and comparables, and obviously personal preferences,” Jung says. Upgrades would also be influenced by the current market.
Providing Referrals to Home Services Professionals
Real estate professionals can also recommend home service professionals such as painters and flooring, kitchen, and bath contractors.
Home remodeling projects are often done for one or both of two reasons — to increase your personal enjoyment and/or the value of your home. Woodruff suggests factoring in both. Jung agrees: “Even if homeowners don’t plan to sell soon, they should be thoughtful about what updates they make,” he says. They’re an investment that could one day pay you back.