It’s a common mistake—homeowners spend thousands of dollars on upgrades, only to discover their home isn’t worth what they expected. Or they struggle to sell because the upgrades don’t appeal to a broad range of buyers. That’s why choosing the right upgrades, and executing them wisely, is crucial if you’re planning to sell your home in the near future. So, which upgrades actually increase your home’s value, and are they worth the investment?
To Upgrade or Not to Upgrade?
The first question to ask yourself is: Do I want to upgrade? What are your reasons—do you want to enjoy the upgrades yourself, or are you aiming to boost your home’s value and make it more appealing to buyers?
If it’s the former, you have more freedom to choose upgrades based on your personal preferences. If you plan to stay in the home for many years, your own enjoyment takes priority.
However, if you’re upgrading specifically to increase the value or marketability of your home, you’ll need to be far more strategic. Choosing the wrong upgrades—or ones that are too personal in style—can actually reduce your return, not increase it.
Do Your Research
Research is your first step when considering home upgrades. Find out the ceiling price for home sales in your street or neighborhood, and calculate your budget accordingly. For example, if homes in your area don’t typically sell for more than $250,000, and your mortgage is $225,000, your margin is just $25,000. After factoring in real estate agent fees and other selling costs, your actual margin is even smaller. In this case, it wouldn’t make financial sense to spend thousands on marble countertops—you simply won’t recover the cost.
Instead, you’d be better off spending a few thousand dollars on making your home more presentable—fresh paint, updated light fixtures, and basic maintenance can go a long way.
A real estate agent can provide insight into recent sales in your area, helping you determine a realistic budget. Agents are also valuable resources when it comes to choosing which upgrades are worth your time and money.
Which Upgrades Will Increase the Value of Your Home?
Choosing the right upgrades—and making smart decisions about them—can mean the difference between making a profit or taking a loss. Kitchens and bathrooms consistently offer the highest return on investment, but only if they’re done correctly. Spending tens of thousands on a new kitchen or bathroom won’t pay off if the installation is subpar. Always hire professionals—even a modest renovation can look high-end when installed properly.
Style matters too. If you’re upgrading with resale in mind (even within a few years), opt for choices that appeal to a wide audience and won’t go out of style quickly. Neutral colors and timeless materials are your best bet. For instance, natural stone countertops like marble or granite are increasingly in demand, but stick to subtle tones and classic patterns.
Similarly, bathroom fixtures should match the overall style of the home. A modern faucet may look out of place in a traditional or period-style home, and the same goes for using antique fixtures in a contemporary space.
On average, kitchen and bathroom upgrades yield a 75% to 100% return on investment. But other improvements can be profitable too—installing hardwood floors often provides a 50% to 75% return, and simply repainting your home can yield between 50% and 100%.
Helping to Sell Your Home
While it’s helpful to know which upgrades increase home value, it’s equally important to consider which ones make your home easier to sell.
Buyers may not be wowed by a new furnace, but upgrades like these—though less visible—can be money well spent. A new heating system can bring a 50% to 80% return and make your home more attractive to buyers. These kinds of improvements serve a dual purpose: they enhance value and boost saleability. The faster your home sells, the more of your investment you’re likely to recover.
In short, don’t rush into upgrades without doing your homework. Speak to a local real estate agent, review recent home sales in your area, and ask for professional advice on which improvements are best suited to your specific property. With the right information, you’ll be in a strong position to increase both your home’s value and its chances for a quick, successful sale.
