Not all home improvements deliver equal returns when it's time to sell. While some upgrades can significantly boost your home's value and help it sell faster, others may actually hurt your bottom line. Understanding which design trends and renovations truly resonate with today's buyers can mean the difference between a quick, profitable sale and months of waiting with price reductions. This guide breaks down the data on what actually works in the current market.
Curb Appeal Projects Deliver the Highest Returns
Year after year, the annual Cost vs. Value Report confirms a consistent truth: exterior improvements dramatically outperform interior renovations when it comes to return on investment. Nine of the top ten projects with the highest ROI are exterior improvements, and this pattern has held steady for nearly a decade.
The reason is straightforward. Real estate professionals who appraise homes place significant weight on curb appeal when establishing a home's selling price. First impressions happen before buyers even step inside, and a well-maintained exterior signals that the entire property has been cared for properly.
Top ROI Home Improvements (2025 Data)
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Find Your Top AgentKitchen Upgrades: Minor Beats Major
The kitchen remains the heart of the home and a critical factor in buyer decisions. However, the data reveals a counterintuitive truth: minor kitchen remodels consistently outperform major renovations in terms of return on investment.
A minor kitchen remodel, which typically includes replacing cabinet fronts with updated panels, adding new hardware, installing a new cooktop and range, upgrading countertops, and refreshing flooring, costs approximately $27,500 on average. This investment returns about 113% of its cost at resale, making it one of the few interior projects that actually pays for itself and then some.
Minor Kitchen Remodel
Average Cost: $27,492
Average Return: $31,000+
ROI: 113%
- Cabinet refacing with modern panels
- New hardware throughout
- Updated countertops
- New appliances
- Fresh flooring
Major Kitchen Remodel
Average Cost: $85,000+
Average Return: $32,300
ROI: 38%
- Custom cabinetry
- Layout changes
- Premium stone counters
- Commercial-grade appliances
- Complete renovation
The key difference is personalization. Major remodels often reflect the current owner's specific tastes, from ultra-modern European fixtures to rustic farmhouse aesthetics. These highly personalized choices may not align with what the next buyer envisions for their kitchen. Minor updates, by contrast, offer a fresh, updated look without boxing buyers into a particular style.
Kitchen Trends Buyers Actually Want
Current buyer preferences lean toward functional, organized spaces rather than showpiece kitchens. Storage solutions consistently rank as a top priority, with 57% of surveyed experts indicating that homeowners prioritize storage above almost everything else in kitchen design. Deep drawers, pull-out organizers, and generous pantry space appeal to practical-minded buyers.
Kitchen islands with built-in seating have become nearly essential, serving as both prep space and social hub. Natural materials like wood countertops and soapstone are gaining ground on granite, particularly in homes styled with English country or collected vintage aesthetics. However, for resale purposes, neutral granite or quartz countertops remain the safest choice, appealing to the widest range of buyers.
Bathroom Improvements That Pay Off
Bathrooms rank second only to kitchens in buyer importance. A midrange bathroom remodel delivers approximately 80% ROI, while spa-inspired design elements have become the dominant trend, with 73% of design experts identifying spa-like features as the most popular bathroom upgrade.
Wet rooms, which feature open shower areas without traditional enclosures, continue gaining popularity in higher-end markets. These spaces eliminate barriers and create a seamless, modern aesthetic that photographs beautifully for online listings. For more modest budgets, simply updating fixtures, vanities, and tile can transform a dated bathroom into a selling point.
Paint Colors That Help Homes Sell
Fresh paint delivers one of the highest returns relative to its cost. HomeLight's research indicates that a fresh coat of paint adds an estimated $8,000 in resale value on average. However, color selection matters enormously. The wrong shade can actually decrease buyer interest and extend time on market.
The overwhelming consensus among real estate professionals points to neutral palettes. Warm whites, soft greiges (gray-beige hybrids), and light taupes create blank canvases that help buyers envision their own belongings in the space. These colors also maximize natural light and make rooms appear larger and more inviting.
Recommended Paint Colors for Selling
Recent Zillow research reveals that certain colors can boost resale value. Navy blue bedroom walls can increase a home's sale price by around $1,800, while olive green kitchen cabinets may prompt buyers to offer over $1,500 more. These contemporary colors signal a modern, well-designed home without being polarizing.
Colors That Sell
- Warm whites and creams
- Soft greige tones
- Light taupe
- Sage green (bathrooms, kitchens)
- Navy blue (bedrooms)
- Soft blue (bathrooms)
Colors to Avoid
- Bright yellow (decreases value by $3,915)
- Bright red (decreases value by $1,987)
- Lime green
- Dark purple
- Pure clinical white
- Bold accent walls throughout
Smart Home Features Buyers Expect
Smart home technology has shifted from luxury novelty to expected standard, particularly among millennial and Gen Z buyers who now dominate the market. Research indicates that 77% of home buyers express interest in smart homes, with nearly 90% of millennials willing to pay more for properties equipped with these features.
Homes with integrated smart technology can sell for 5% to 10% above comparable properties without these features. More importantly, energy-efficient homes with smart management systems sell 10% to 15% faster than similar homes lacking these capabilities.
Smart Security
Video doorbells, smart locks, and integrated camera systems rank as top priorities for over 70% of buyers.
Smart Thermostats
Nest and Ecobee systems that learn routines can increase resale value by 3% to 5% according to NAR data.
Smart Lighting
Automated lighting with voice control and scheduling appeals to buyers seeking convenience and energy savings.
Solar Systems
Homes with solar energy systems sell 20% faster and for 4.1% more on average according to U.S. Department of Energy data.
EV Charging
EV charging station mentions in listings increased 175% year over year, reflecting growing demand for electric vehicle infrastructure.
Voice Assistants
Integration with Alexa, Google Assistant, or Apple HomeKit for centralized control of multiple systems.
Which Upgrades Matter Most in Your Market?
Local market conditions vary significantly. A top-performing agent in your area knows exactly what buyers prioritize and which investments deliver the best returns.
Get Expert GuidanceThe Power of Professional Staging
Home staging has evolved from optional enhancement to essential selling strategy. According to the National Association of Realtors' 2025 Profile of Home Staging, 83% of buyers' agents report that staging makes it easier for buyers to visualize a property as their future home. This visualization component is critical because most buyers struggle to see past existing furniture arrangements or empty rooms.
Staging Impact by the Numbers
Rooms That Matter Most for Staging
Virtual staging has emerged as a cost-effective alternative for empty properties. While only 16% to 18% of agents currently rate it as highly important, digital staging technology continues improving rapidly. For properties that need visual enhancement but cannot justify full physical staging costs, virtual staging offers a practical middle ground.
Trends and Upgrades to Avoid
Just as certain improvements boost value, others can actively harm your sale prospects. Understanding what to avoid is as important as knowing what works.
Declining Features
Analysis of listing descriptions reveals clear downward trends for several previously popular features. Formal dining rooms with built-ins have declined 25.3% in mentions, infinity-edge pools dropped 24.7%, and three-car garages fell 19.1%. Buyers increasingly favor modern, functional designs over ornate or oversized spaces.
Improvements with Poor ROI
- Major kitchen remodels (38% ROI)
- Upscale bathroom remodels (42% ROI)
- Primary suite additions (31% ROI)
- Swimming pools (limited buyer pool)
- Highly personalized design choices
- Converting garages to living space
Features Losing Appeal
- Formal dining rooms
- Oversized garages (3+ cars)
- Infinity-edge pools
- All-white interiors (clinical feel)
- Wall-to-wall carpeting
- Open shelving (storage concerns)
Outdoor Living Spaces
Outdoor living has become significantly more important to buyers, with 56% of experts surveyed indicating that homeowners are prioritizing backyard upgrades more than ever before. The pandemic accelerated this trend, and it shows no signs of reversing.
A wooden deck addition provides 45% to 55% ROI and remains highly desirable. Buyers specifically seek spaces that extend their living area outdoors without requiring constant maintenance. Native plants, smart irrigation systems, and weather-resistant seating arrangements create functional outdoor rooms that photograph well and appeal to busy homeowners.
Fire pits consistently rank among the most desired outdoor features. These gathering spots create natural focal points for entertaining and extend the usability of outdoor spaces into cooler months. Low-voltage landscape lighting, which increased 91% in listing mentions, supports the trend toward outdoor rooms that remain functional after sunset.
Emerging Trends Worth Watching
Several emerging features show strong growth that may signal future buyer expectations. WaterSense fixtures, which reduce water use by at least 20%, topped the fastest-growing features list with a 289.6% year-over-year increase in listing mentions. Net-zero ready homes increased 198%, and biophilic design featuring indoor-outdoor connections grew 163%.
The integration of nature into living spaces reflects a broader shift in buyer priorities. Large glass doors that blur indoor-outdoor boundaries, interior courtyards, living walls, and abundant natural light all contribute to the biophilic design trend. Homes featuring these elements command median list prices around $859,000, indicating their appeal in mid-to-upper tier markets.
Backup power generators have emerged as a significant selling point, returning 95.3% ROI. This reflects buyer concerns about grid reliability and severe weather events, particularly in regions prone to outages. For many buyers, the peace of mind these systems provide justifies their cost.
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Get Matched with a Top AgentFrequently Asked Questions
Garage door replacement currently offers the highest return on investment at 268% according to the 2025 Cost vs. Value Report. A typical investment of around $4,672 can return approximately $12,507 in resale value. Steel entry door replacement follows closely at 216% ROI, and manufactured stone veneer delivers 208% ROI. These exterior improvements consistently outperform interior renovations because they create strong first impressions and signal overall property maintenance.
It depends on the scope. A minor kitchen remodel returns approximately 113% of its cost, making it one of the best interior investments. However, major kitchen remodels return only about 38% of their cost. Focus on updates like cabinet refacing, new hardware, updated countertops, and new appliances rather than complete gut renovations. Avoid highly personalized choices that may not appeal to the next buyer.
Neutral colors consistently perform best for resale. Warm whites, greige (gray-beige), and soft taupe create blank canvases that help buyers envision their belongings in the space. For accent colors, navy blue bedrooms can add approximately $1,800 to your sale price, and olive green kitchen cabinets may increase offers by over $1,500. Avoid bright yellow (which can decrease value by nearly $4,000) and bright red in bedrooms.
Yes, for most sellers. Staged homes sell up to three times faster than non-staged homes and can sell for up to 15% more according to the Real Estate Staging Association. The median cost of professional staging is approximately $1,500. With 83% of buyers' agents reporting that staging helps buyers visualize the property as their future home, the investment typically pays for itself through faster sales and stronger offers.
Smart home features can increase property value by 5% to 10% and help homes sell 10% to 15% faster. The most impactful features include smart security systems (video doorbells, smart locks), smart thermostats that can add 3% to 5% in value, and solar energy systems that help homes sell 20% faster. With 77% of buyers interested in smart homes and 90% of millennials willing to pay more for these features, strategic smart upgrades represent solid investments.
The living room is the most critical room to stage (91% of agents prioritize it), followed by the primary bedroom (83%), dining room (69%), and kitchen (68%). Focus your improvement budget and staging efforts on these high-impact areas. Guest bedrooms and home offices are the least important rooms to stage, so allocate your resources accordingly.
Generally, no. Swimming pools require expensive ongoing maintenance, increase insurance costs, and limit your buyer pool. Many families with young children view them as safety hazards. In cooler climates, they offer limited seasonal value. Pool installations rarely recoup their cost at resale and can actually make your home harder to sell by eliminating buyers who do not want the maintenance responsibility or liability.
A midrange bathroom remodel delivers approximately 80% ROI. Focus on updating fixtures, vanities, and tile rather than moving plumbing or expanding the space. Spa-like design elements are particularly popular, with 73% of design experts identifying this as the top bathroom trend. For maximum impact, prioritize the primary suite bathroom and main guest bathroom over secondary bathrooms.
Curb appeal is extremely important. Nine of the top ten highest-ROI improvements are exterior projects. First impressions form before buyers enter the home, and real estate professionals weigh curb appeal heavily when establishing selling prices. Entry door replacement, garage door replacement, exterior paint, and manufactured stone veneer all deliver returns exceeding their cost while creating immediate positive impressions.
Avoid highly personalized design choices, major kitchen renovations (38% ROI), upscale bathroom remodels (42% ROI), and converting garages to living space. Formal dining rooms with built-ins, infinity-edge pools, and three-car garages are declining in popularity. Bright, bold wall colors like yellow and red can decrease your home's value. Focus on neutral, broadly appealing updates rather than trend-forward or personalized choices.
Selling a home successfully requires understanding what today's buyers actually value. The data consistently shows that exterior improvements, neutral aesthetics, functional kitchens and bathrooms, smart technology, and professional staging deliver the strongest returns. Perhaps most importantly, working with an experienced real estate agent who understands your local market can help you identify which specific improvements will resonate with buyers in your area. A strategic approach to pre-sale improvements, guided by market data rather than personal preference, positions your home for faster sales at higher prices.
For more guidance on preparing your home for sale, explore our resources on how to sell a house, learn about common problems that prevent homes from selling, and discover the benefits of working with a top-performing agent.
