Home Improvements that Have the Largest and Smallest Impact On Your Home’s Value

If you're thinking about selling your home, you've probably wondered whether you should make a few improvements first. Maybe the kitchen feels dated. Perhaps the flooring has seen better days. Maybe you're thinking about replacing the windows, updating the bathroom, or finally tackling that exterior project you've been putting off. And if you start researching online, you'll quickly find plenty of advice about which improvements supposedly add the most value.

But here's the question I think is much more important:

How do you know which improvements are actually worth your money?

Because the goal isn't to make your home as expensive as possible. The goal is to make smart decisions with the equity you've worked hard to build. And the latest data gives us some interesting clues.

The Most Expensive Improvement Isn't Always the Best Investment

One of the things I find fascinating about the latest remodeling data is how dramatically the potential return can vary from one project to another.

The 2025 Cost vs. Value Report looked at 28 remodeling projects across 119 U.S. markets. More importantly for my Minnesota clients, it includes data specifically for Minneapolis. And one of the biggest takeaways is this:

Sometimes a relatively small improvement can create more resale value than a much larger renovation.

For example, the 2025 Minneapolis data estimates that a garage door replacement costs about $4,776 and could contribute approximately $11,113 in resale value. That's an estimated 232.7% cost recouped. A steel entry door replacement comes in at about $2,397, with an estimated $4,268 in resale value—or 178.1% of the project cost recouped.

Those numbers don't mean that every Minneapolis homeowner will get those exact results. Your home, neighborhood, quality of work, timing, and buyer demand all matter. But they illustrate something important:

Value doesn't always come from spending more.

A Kitchen Remodel Is a Great Example

Let's talk about kitchens, because this is where homeowners can get themselves into trouble. A beautiful kitchen can absolutely make a home more enjoyable. In fact, the 2025 NAR/NARI Remodeling Impact Report gave kitchen upgrades one of the highest possible homeowner satisfaction scores—a 10 out of 10 Joy Score. But enjoyment and resale return aren't necessarily the same thing.

The 2025 Minneapolis Cost vs. Value data estimates that a minor midrange kitchen remodel costing approximately $28,196 could recoup about $28,466 in resale value—roughly 101% of the investment.

Now compare that with a major midrange kitchen remodel. The estimated cost in Minneapolis is about $81,187, but the estimated resale value is only $49,839, representing approximately 61.4% cost recouped.

That's a pretty dramatic difference.

You could spend more than $80,000 creating a beautiful new kitchen and potentially recover only around $50,000 of that investment when you sell. Meanwhile, a more modest kitchen update may potentially recover approximately what you invested. More isn't necessarily better. Smart is better.

What Are REALTORS® Recommending Before Sellers List?

The latest NAR/NARI research gives us another interesting perspective.

When REALTORS were asked which remodeling projects they recommend sellers complete before listing, the most common recommendation was painting the entire home, at 50%. Another 41% recommended painting a single interior room, while 37% recommended new roofing. Kitchen upgrades were recommended by 30% and bathroom renovations by 24%. I think that's telling. You don't necessarily need to completely transform your home before selling it. Sometimes the smartest move is simply making the home feel fresh, clean, well-maintained, and easy for a buyer to imagine themselves living in.

Don't Underestimate the Front Door and Garage

Here's another interesting example from the Minneapolis data.

A steel entry-door replacement has an estimated 178.1% cost recovery, while a garage-door replacement comes in at an estimated 232.7%.

Why might these relatively simple projects perform so well? Part of the answer is probably first impressions. Your garage door represents a large portion of the front exterior of many homes. Your front door is literally the entrance to the experience.

Buyers don't need to consciously say, “This garage door increased the value of this property.”

They simply experience the home as looking well-maintained, attractive, and cared for. That's one reason I like to think about improvements from the buyer's perspective. What will they notice? What will they question? And what will make them feel confident about the home?

What About Windows?

Windows are another project where I would encourage homeowners to think strategically.

In the 2025 Minneapolis data, a vinyl-window replacement was estimated to cost about $23,743 and provide approximately $16,444 in resale value—about 69.3% cost recouped. That doesn't mean replacing your windows is a bad idea. If your windows are failing, drafty, damaged, or creating a problem during the selling process, the calculation changes. But if you're thinking about replacing perfectly functional windows simply because you heard new windows “add value,” I'd want to look at the numbers first.

This is an important distinction:

An improvement can be worthwhile without being a great resale investment. Maybe you want energy efficiency. Maybe you want comfort. Maybe you're planning to stay for another five years. Those are perfectly good reasons. But if you're planning to sell in six months, we should look at the decision differently.

Be Careful With Big Exterior Projects, Too

The same principle applies to larger exterior improvements.

The 2025 Minneapolis data estimates that fiber-cement siding replacement can recoup about 95.6% of its cost, which is relatively strong. A wood deck addition, on the other hand, was estimated at about 85.5% cost recouped. That means a deck can still add value and enjoyment without necessarily returning every dollar you spend. And that's okay. Not every improvement needs to be a financial investment. If you've lived in your home for ten years and your family has enjoyed a beautiful deck every summer, you've already received a return that doesn't show up on a resale spreadsheet. That's where I think we need to be careful about looking at real estate purely through numbers.

Your home is both a financial asset and a place where your life happens.

The strategy is knowing which decisions are about lifestyle and which are about maximizing resale value.

What About the Roof?

A roof is a little different.

A new roof may not always provide a dollar-for-dollar return, but it can remove uncertainty for a buyer.

The 2025 NAR/NARI report found that 37% of REALTORS® recommend new roofing before a home is listed, making it one of the most commonly recommended pre-sale improvements. If your roof is nearing the end of its useful life, has visible issues, or is likely to become a major inspection concern, it deserves a conversation. But again, I wouldn't automatically tell every homeowner to replace their roof before selling.

If your roof is relatively new and functioning well, spending tens of thousands of dollars simply because you're preparing to sell may not be the best use of your equity. Sometimes the value isn't in what the improvement adds. It's in the problem it prevents.

And Then There Are Improvements I'd Think Twice About

A swimming pool is a good example. If your family has always wanted a pool and you're going to enjoy it for years, that's a lifestyle decision. There's nothing wrong with that. But if you're installing a pool six months before selling because you believe it will dramatically increase your home's value, that's a different conversation. The same goes for removing a bedroom to create a huge closet, home gym, or office. It might be perfect for your family, but the next buyer may have completely different needs.

And this is why I don't like blanket statements such as, “This improvement always adds value.”

Real estate is local. Your neighborhood matters. Your price point matters. Your competition matters. Your buyer matters. And your timeline matters.

The Biggest Mistake May Be Over-Improving

One of my favorite examples from the 2025 Minneapolis data is the difference between a minor and major kitchen remodel. A minor kitchen remodel is estimated to recoup approximately 101% of its cost. A major midrange kitchen remodel is estimated to recoup approximately 61.4%. And a major renovation isn't necessarily going to make your home 40% better in the eyes of the buyer simply because you spent 40% more money. That's the trap.

You start with, “We should update the kitchen.”

Then it becomes, “If we're replacing the cabinets, we might as well move the wall.”

Then it's, “If we're moving the wall, let's add another window.”

And suddenly you've spent $100,000 creating the kitchen of your dreams—only to discover that the market doesn't value every dollar you put into it.

That's not necessarily a renovation problem. It's a strategy problem.

So What Should You Actually Improve?

This is where I think homeowners benefit from stepping back before they start calling contractors.

Instead of asking, “What can we renovate?” I'd ask:

What does my home actually need?

Then:

What will buyers in my market value?

And finally:

What is the potential return compared with the cost, time, and hassle?

Those three questions can completely change the conversation.

Maybe your kitchen really does need an update.

Maybe your front door and garage door are the better opportunities.

Maybe fresh paint and landscaping will create more impact for a fraction of the cost.

Maybe your roof needs attention because it's going to become a negotiation issue.

Or maybe your home is already in good shape and you don't need to do much at all.

Your Equity Deserves a Strategy

If you've built substantial equity in your home, I want you to think carefully before putting that equity back into renovations.

The latest data gives us benchmarks, but benchmarks aren't guarantees. The 2025 Cost vs. Value report itself is based on estimated job costs and resale values across specific markets and project types. Your actual results can be very different depending on your home and circumstances. That's why I don't believe in a universal “before you sell” renovation checklist. Your home isn't an average home. It's your home, in your neighborhood, in your price range, competing against specific properties for specific buyers. The right improvement for your neighbor may not be the right improvement for you. And sometimes, the smartest improvement is no improvement at all.

Before You Spend a Dollar, Let's Make a Plan

If you're thinking about selling in the next year or two, you don't have to wait until you're ready to put a sign in the yard to start planning.

In fact, I prefer starting earlier. We can look at your home's current condition, recent sales, competing properties, your neighborhood, your timeline, and the improvements you're considering. Then we can determine where your money is most likely to make a difference. Maybe we'll find a few improvements that could help you maximize your equity. Maybe we'll decide a larger project makes sense. 

Or maybe we'll decide that spending $50,000 to make the home “perfect” isn't going to give you the return you're looking for. That's okay, too. Because my job isn't to convince you to remodel. My job is to help you make a smart real estate decision. Your home should serve your life while you own it—and when it's time to move forward, your equity should work as hard for you as possible.

Don't renovate because you think you have to. Renovate because the numbers, the market, and your goals tell you it's the right move.

That's what strategic real estate looks like.

And sometimes, the smartest way to maximize your equity isn't spending more.

It's knowing exactly where to spend—and where not to.