I recently reviewed a report from the National Association of Realtors compiling a list of recent remodeling projects based on their estimated cost recovery at resale. The report included 12 categories, ranked highest to lowest in terms of recovery value percentages. These were:
- New steel front door – 100%
- Closet renovation – 83%
- New fiberglass front door – 80%
- New vinyl windows – 74%
- New wood windows – 71%
- Basement conversion to living area – 71%
- Attic conversion to living area – 67%
- Complete kitchen renovation – 60%
- Minor kitchen upgrade – 60%
- Bathroom addition – 56%
- New primary suite – 54%
You can read my review from last month here: Making Smart Remodeling Decisions.
As you can see, most remodeling projects will not fully recoup the cost of investment. The main exception is when you’re working with a property in extreme need—such as one that is significantly outdated or in disrepair. In those cases, upgrades can dramatically increase value and appeal.
However, if you’re remodeling primarily for personal use or aesthetic updates, it’s important to be realistic: most upgrades won’t return 100% of your investment. That said, making smart improvements can still be the right decision, especially if you’re planning to sell in a competitive or slow-moving market where listings may expire before selling.
One standout from the list is the steel front door, which showed a full 100% cost recovery. This highlights the impact of curb appeal. Consider small but high-impact changes like:
- Updating or replacing your front door
- Fresh landscaping
- A new welcome mat
- Ferns or seasonal potted plants at the entrance
If you’re flipping a house or investing in a high-needs property, here are five valuable projects that can improve both appeal and potential return:
- New flooring – Replace aged carpet with vinyl or laminate floors; skip the high-end materials like wood or tile.
- New appliances – Especially important if current ones are outdated or in unappealing colors.
- Ceiling repairs – Address any ceiling stains or cosmetic flaws.
- Granite countertops – Replace if the current countertops are chipped, warped, or visibly worn.
- Cabinet updates – Rather than replacing outdated kitchen cabinets, consider painting or refinishing them for a fresh, modern look.
I hope this has been helpful as you consider the marketability of your property and the decisions that will help you sell successfully – ideally at top value and within a reasonable time frame. We are always happy to do evaluations of property value for you. Please feel free to reach out and we will give you additional input and your properties value if you were to sell today and a sense of how long it would take to get an offer and close.
