9 tips to increase house value

Jul 4, 2025

5-minute read

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Home improvement, potentially related to renovation or home improvement concepts.

Your home is a place to live and create lifelong memories, but it’s also a financial investment. So it only stands to reason that you’d make enhancements that would boost your quality of life while also increasing your return on investment (ROI) — essentially, your financial gain compared to your initial costs.

That’s exactly what you can do with strategic upgrades to your house — you improve your quality of life, beautify your living space, and grow your ROI. That’s a win-win-win.

Reasons to raise your home’s value

The world of real estate finance is complicated, so it can be refreshing to find a term that’s so simplistic: Simply put, ROI means how much money you get back compared to what you originally spent. The concept of ROI largely applies when you sell your home, but with the right upgrades you can increase your property’s market value while also building equity in it, even if you plan on living in it for a while.

Consider these simple facts about the ROI of upgrades and updates. With some judicious work, you can:

  • Sell your home for a higher price: All improvements you make to your home can increase the market value when it's appraised during the home selling process. While certain improvements create a higher ROI than others, almost every improvement you make can increase the chances of selling at a higher price.
  • Increase your home equity faster: Equity is the difference between how much you owe on your mortgage and the value of your home. The bigger the difference between your existing mortgage balance and your home value, the more equity you can use your for home improvements, debt consolidation, or another financial needs. In other words: The higher your home’s value, the more equity you have.
  • Cancel private mortgage insurance (PMI) on a conventional loan: Conventional loans require borrowers to pay for PMI if their down payment is less than 20%. That can be a heavy albatross for a homeowner, but you can request a new appraisal of your home to determine whether you can cancel your PMI policy if you make substantial home improvements.

Here are some practical ways to add value to your home. We’ll walk you through why these tips work, how to implement them, and the potential ROI they may have.

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Ways to boost your ROI

1. Remodel the kitchen and bathroom

The kitchen and bathroom are two of the most functional spaces in any house. Consider upgrading appliances or bathtubs, or create more luxurious shower spaces. However, do not feel pressured to make everything a major expense. Even less-intense rehab work can pay off — a “minor kitchen remodel” makes back 96% of its cost, according to The Journal of Light Construction. Plus, everyone can become handy with the proliferation of YouTube videos and available classes at local hardware stores.

2. Declutter

Let’s put this simply: If you don’t need it, toss it. Downsizing a home doesn’t always mean you have to live in a smaller house; sometimes you can just declutter and it will make your existing home feel bigger. That’s one reason open concept layouts remain a popular trend among home buyers.

So when home buyers are walking through your home, make sure they can navigate it easily and visualize themselves in your space. Minimize your footprint and remove furniture you don’t use. Take down framed photos from the walls. Remember that potential buyers want to be able to think of the home as their own — those photos are your footprint, and they can inhibit potential buyers’ visualization process.

3. Boost your curb appeal

Curb appeal essentially means “what people see when they look at your house from the street.” Your home’s interior might be spotless, but if your curb appeal is lacking you’re just taking money out of your own pocket.

Here are some ways to enhance your curb appeal:

Upgrade the landscaping by planting trees and building pathways (91% of REALTORS® said improved landscaping was one of their top features, according to fixr.com)

  • Replace the mailbox
  • Upgrade the front door
  • Install outdoor lighting along walkways
  • Power wash the driveway and sidewalks

4. Consider a new paint job

Most homes can use a fresh coat of paint, and we’d recommend choosing neutral paint colors to appeal to all potential home buyers. If you were feeling creative and initially painted your house as an homage to Jackson Pollock, well — you might want to tone it down for the open house.

From a practical perspective, you may need a new coat of paint if you have cracked or peeling areas in a home built before January 1, 1978. This was when, unfortunately, lead paint was a popular choice. Not repainting or otherwise mitigating the issue may cause you to fail an appraisal for a potential health hazard.

5. Add square footage

Increasing the size (or square footage) of a home offers a substantial ROI by expanding its usable space. Additional bedrooms and bathrooms offer the most significant financial benefit, but you could also increase the kitchen and family room spaces if you’re looking at potential home additions.

Higher construction prices and other costs mean creating more square footage isn’t cheap, but again, you will see some return on this outlay. They include:

  • Primary suite addition (midrange) = 36% ROI
  • Primary suite addition (upscale) = 24% ROI
  • Bathroom addition (midrange) = 35% ROI
  • Bathroom addition (upscale) = 33% ROI

6. Install smart technology

Smart home technology is all the rage these days — and rightfully so. Think about the convenience that comes with a smart thermostat, smart lighting, or a smart entertainment system. In addition to the ease of being able to control lights, the temperature, and other appliances from your phone or with your voice, some of these devices can be tied together and use machine learning that adjusts to your habits. These smart adjustments are not only convenient — and, let’s be honest, they’re pretty cool — but they could also lower your energy bills.

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7. Add a deck or patio

A deck or patio provides the perfect place to hang out , play games, and entertain guests. If you’re feeling adventurous, you can step up to the big leagues and add an outdoor kitchen space, as well.

Decks tend to bring a high ROI — wood deck additions have an ROI of 83%, according to The Journal of Light Construction, while composite decks bring an ROI of 68%. Be sure to shop around for affordable construction and see if you can trim costs by using more less-expensive materials.

8. Build a garage or shed

While they won’t add to the home’s livable square footage, garages or sheds are considered a huge bonus feature by most homebuyers. Whether the space is used to keep your vehicles out of the elements or as a workshop or fortress of solitude, an updated garage or shed can push up the value of your home.

To save on these projects, consider getting at least three contractor quotes to ensure competitive pricing, and look at prefabricated kits, which can cost 20% – 30% less than custom builds. Durable-yet-affordable materials like vinyl siding typically cost much less than brick, and you can save more if you do the painting or basic shelving yourself.

9. Finish your basement

Finishing a basement can provide a great place to hang out, and ROI for this work can be pretty high. You'll typically recoup 70% – 75% of costs, according to the Massachusetts Association of Buyer Agents, while adding valuable space that for entertainment, home offices, or guest rooms.

But it also requires some intensive construction work. For starters, it’s key to begin with proper waterproofing — a flooded basement can be a disaster. Then with some good lighting and insulation, you can transform that dark storage area into something inviting. You can save money if you do some of the painting and simple tasks yourself, but be sure to hire pros for electrical and plumbing to ensure everything’s safe and up to code.

The bottom line: Look at ways to increase your home’s value

Smart home improvements can elevate your daily living experience in the house while also boosting your property's price tag when it’s time to move. Focusing on curb appeal, making savvy updates, and adding square footage can catch buyers’ attention while also delivering strong returns.

For those settling in for the long haul, choose upgrades that will make you smile each day, knowing that thoughtful improvements typically translate to value down the road. With some planning and creativity, your house can become both the backdrop for your favorite memories and a wise investment that grows alongside your life.

Headshot of a man smiling, sitting in a grey-beige chair with a plant behind him.

Joel Reese

Joel is a freelance writer who has written about real estate, higher education, sports, and myriad other subjects. He has been published in The Best American Sports Writing series, Details, Spin, Texas Monthly, Huffington Post, Chicago magazine, and many other outlets. His website, ReeseWrites.net, features several samples of his work.