Will Remodeling Increase the Value of a Home?


Home remodeling projects can increase the value of a home, and some projects add more value than others. Essentially, remodeling projects that add value are those that others perceive as valuable and will pay for when you sell the home. Home remodeling projects also enhance the livability of a home and can add style, design, and comfort for you.

Will Remodeling Increase the Value of a Home?


The kitchen is often the most used room in the house. Fixing it not only will increase the value of your home, but it also will make cooking in it more pleasurable. Kitchen remodeling can be simple or extensive, depending on your budget. Old, damaged cabinet doors can be replaced with new ones or just painted. Appliance upgrades, especially to Energy Star appliances, will add value to your home and save the owner money. New flooring can make a difference in the kitchen as well, and you can replace laminate counter tops with new ones or upgrade to tile or granite. But if you add a heavier counter, you might need reinforced cabinets to handle the weight.


Remodeling a bathroom or adding a new one will increase a home’s value. If your home has just one bathroom, putting in another will certainly improve the value, although the project is more expensive than remodeling an existing bathroom. Besides adding value to your home, having more than one bathroom increases the ability to sell the home, and a shorter time on the market translates to saving money. According to Hanley-Wood research data for 2008 and 2009, a bathroom remodeling returned more than 70 percent of the investment in the Bay area after the home was sold.


Windows are one of the best investments homeowners can make, especially if their old windows leak or are otherwise not energy efficient. Since windows account for substantial heat gain and loss in homes, you'll recover the investment through energy savings.

Exterior Siding

Painting the exterior of your home may not increase its value substantially, but like bathroom remodeling, the perceived value of the home will rise because it will add curb appeal. New siding, however, has a positive impact on the value of the home. According to the Hanley-Wood study, home sellers who remodeled the exterior with wood siding received an 81 percent payback on their investment, while sellers who replaced the siding with concrete fiber siding received 87 percent back on their investment when they sold.


New flooring may not add substantially to the value of a home, but having worn carpeting makes it harder to sell a home. Some homeowners and real estate agents believe that when the flooring needs to be replaced, it's a better to use the flooring as a negotiating tactic to reduce the selling price of the home. New flooring can also enhance the attractiveness of the home even if the owners have no intention of selling in the near future.

Structural Additions

Wood decks added more value to the home than bedroom additions, according to the Hanley-Wood study, which found that the payback on adding a deck was 82 percent, compared to 66 percent for adding a bedroom. The cost of adding a deck is about one-third less costly than adding a bedroom.