What Home Improvements Attract Buyers?

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Whether you’re interested in selling your home and moving or want to plan a renovation to better suit your needs, it’s important to focus on projects that have the best return on investment (ROI). This financial ratio is used to evaluate the profitability of a renovation or investment.

According to the Joint Center for Housing Studies at Harvard University, Americans spent an estimated $603 billion on remodeling their homes in 2024. This year, Realtor.com reports that many homeowners are focused on remodeling projects that increase functionality and aesthetics.

Based on their reporting, we’ve outlined the top home improvement projects that have the best return on investment in 2025.

Energy-Efficient Features

Energy efficiency goes beyond updating your appliances to improve your energy bills. The top three improvements that experts recommend are a steel entry door, window replacements, and upgrading your HVAC system.

Updating your entry door to a steel replacement has an 85% to 188% ROI. A steel entry door is generally low cost and may improve your curb appeal, increase your home’s security, and block out the elements. In the same vein, updating your HVAC system keeps your house operating at its best and has an average 66% ROI. Replacing old windows may have a 70% to 80% return on investment and reduces drafts, helping you keep utility bills low. Even replacing your garage door for a newer model has a 90% to 189% return on investment because it increases your curb appeal and helps insulate your space.

Exterior and Interior Painting

Paint is a great way to transform an entire room, helping spaces feel larger and more inviting. Experts recommend focusing on main living areas, bedrooms, and entryways and using neutral colors. Neutrals don’t necessarily mean you have to use shades of gray—earth tones and muted shades can also be appealing without distraction.

Exterior paint can make a home look totally different and increase your curb appeal. High quality exterior paint can protect wood from rotting and against the elements.

Beyond the House

Homebuyers want to feel at home and entertain their loved ones everywhere on their property, including outside. In the past few years, experts have seen an increase desire for outside features, such as outdoor pizza ovens, beverage centers, and smart exterior lighting.

Whether your home is in a rural or urban environment, experts recommend focusing on smaller projects outside rather than a full luxury overhaul. If you’re planning on selling sooner rather than later, it may be best for low scale projects, like the basic construction of a patio slab. A deck or patio can give a homeowner 65% to 108% return on investment. Plus, when a buyer moves in, they’ll be able to customize the area to meet their needs.

Value in Home Financing

When you’re completing projects around your home, it’s best to work with a professional who knows the ins and outs of the industry, costs, and will help you find a solution that aligns with your goals. Our Loan Originators are those experts for home financing! Ready to work with a company that helps you reach the closing table with confidence? Contact us today!