10 Home Improvements That Can Increase Resale Value

A couple put their home up for sale after complete valuable renovations with strong ROIs.

Home improvements can increase resale value, but not every renovation produces the same return. Some projects make a home more functional, while others improve its appearance or resolve concerns that might discourage potential buyers.

The best remodeling projects for resale usually address an existing weakness without pushing the home far beyond neighborhood expectations. They also appeal to a broad range of buyers rather than reflecting one homeowner’s highly specific tastes.

If you are preparing a house to sell, here are ten improvements worth considering.

1. Make Practical Kitchen Improvements

The kitchen often has an outsized influence on how buyers perceive a home. An outdated or poorly arranged kitchen can make the entire property feel like a project, even when the rest of the house is in good condition.

A kitchen does not always need to be completely rebuilt to add value. Depending on its condition, practical improvements might include:

  • Refinishing or replacing worn cabinets
  • Installing durable countertops
  • Improving lighting
  • Updating inefficient appliances
  • Adding storage
  • Correcting an awkward layout
  • Replacing damaged flooring

When deciding what to remodel before selling, concentrate on function and condition before luxury finishes. The goal is to create a kitchen that feels attractive, comfortable and appropriate for the home.

2. Update an Aging Bathroom

Bathrooms are another area where visible wear can concern buyers. Cracked tile, damaged cabinetry, poor ventilation and aging fixtures may suggest that additional maintenance is waiting beneath the surface.

A bathroom renovation can improve resale appeal by addressing those problems while making the room easier to use. A better vanity layout, improved lighting, accessible storage and a properly sized shower can all make a meaningful difference.

If the bathroom already functions well, a targeted update may produce a better home improvement return on investment than changing the entire layout.

3. Finish the Basement

Finishing an existing basement can create a family room, home office, gym, playroom or guest area without changing the home’s exterior footprint.

The condition of the basement must come first. Moisture, drainage, foundation and ceiling-height concerns should be evaluated before finishes are installed. Buyers may be wary of a finished basement if they see evidence that water problems have simply been covered.

When the underlying conditions are suitable, a basement conversion can offer strong home renovation ROI. The National Association of REALTORS® estimated a 71% cost recovery for converting a basement into living space in its 2025 Remodeling Impact Report. Actual results will vary by home and market. 

4. Add Usable Living Space

An addition may create substantial value when a house lacks something buyers expect, such as an adequate family room, another bedroom or a primary suite.

The most successful additions solve a specific problem and feel like a natural part of the original structure. Rooflines, exterior materials, room proportions and traffic patterns should all connect the addition to the existing home.

Before planning a home addition in Chicago, homeowners should also consider lot coverage, setbacks, zoning, permitting and construction cost. An addition may improve marketability without returning every dollar spent, so it should be planned with the neighborhood and anticipated length of ownership in mind.

5. Improve the Floor Plan

More square footage is not always the answer. Sometimes the existing space simply needs to work better. Older homes may have isolated kitchens, narrow passages, underused formal rooms or poorly placed doors. Selectively opening the floor plan or changing how rooms connect can improve movement, natural light and sightlines.

This does not have to mean removing every wall. A wider opening between two rooms or a more direct connection between the kitchen and dining area may accomplish more than creating one large, undefined space.

6. Replace Worn Windows

Windows affect appearance, energy use, comfort and maintenance. Drafty or deteriorated windows can make a home feel neglected and may become a point of concern during an inspection. Replacement is not automatically the right answer for every property. Original wood windows in a historic home may be worth repairing, particularly when they contribute to the home’s architectural character. In other cases, new windows may improve operation and reduce ongoing maintenance.

Window work should be evaluated as part of the complete exterior rather than as an isolated cosmetic change.

7. Add Better Storage

Insufficient storage is a common weakness in older homes. Buyers may love the architecture but struggle to imagine where their clothing, kitchen equipment and everyday belongings will go.

Storage improvements may include:

  • Custom closets
  • Built-in cabinetry
  • A kitchen pantry
  • Mudroom storage
  • Bathroom cabinetry
  • Laundry room shelving
  • Organized basement storage

These improvements do not necessarily add square footage, but they can make the existing home feel larger and easier to live in. In the 2025 Remodeling Impact Report, closet renovation was among the projects with the highest estimated cost recovery.

8. Address the Roof and Exterior

A home’s exterior forms a buyer’s first impression, but curb appeal is not only about appearance. Damaged roofing, deteriorated siding or poor drainage can raise questions about water intrusion and deferred maintenance.

Exterior work might include roof replacement, masonry repairs, siding restoration, gutter and downspout improvements or a new front door. Landscaping and exterior lighting can further improve the approach to the house.

If you are getting a house ready to sell, necessary exterior repairs should generally take priority over decorative additions. Buyers may overlook an ordinary backyard more easily than signs of an active leak.

9. Upgrade Outdated Systems

Mechanical improvements may not photograph as well as a new kitchen, but they can make the home more comfortable and reduce buyer concerns. Depending on the property, valuable upgrades may include:

  • Replacing an aging electrical panel
  • Updating old wiring
  • Correcting plumbing problems
  • Improving heating and cooling
  • Adding insulation
  • Resolving drainage concerns
  • Improving bathroom or kitchen ventilation

These projects may not always increase the listing price dollar for dollar. However, they can prevent an inspection from revealing problems that delay negotiations or lead buyers to reduce their offers.

10. Refresh Finishes Throughout the Home

Paint, flooring, lighting and trim influence how buyers experience every room. Worn or inconsistent finishes can make a house feel less cohesive, even when its layout is good. A restrained finish palette usually works best when preparing a house for sale. This does not require stripping the home of personality. It means choosing materials and colors that complement its architecture and allow buyers to imagine making the space their own.

Repairing damaged flooring, repainting heavily marked walls and replacing poorly placed lighting can give the home a more complete appearance without requiring structural work.

Choose Improvements Based on the Home

There is no universal formula for maximizing home remodel return on investment. A kitchen renovation may be the right priority in one home, while another would benefit more from exterior repairs, additional storage or a better floor plan. Homeowners who plan to renovate to sell should consider speaking with a real estate professional before setting the scope. Recent comparable sales can help identify which features buyers expect and how much the market is likely to support.

Those who intend to remain in the house longer can place more weight on comfort and personal use. Years of improved functionality have value, even when the eventual home improvement return on investment is less than the original construction cost.

Moller Builders helps Chicago homeowners identify remodeling opportunities that improve how a home functions today while considering its long-term value. Fill out the form below to get in touch. We can’t wait to help with your renovation.