Jeffrey is a Real Esate Broker,
blogger , big thinker
People ask me all the time what should they do to maximize their investment in their home and its not as easy or straightforward as you might think, here is as scientific an approach as i can come up with.
People don’t remodel their homes just because they’re bored on a Saturday. They remodel because the kitchen screams 2003, the bathroom feels like a hostage situation, or they finally have the budget to fix what’s been quietly annoying them for a decade.
The remodeling projects with the strongest cost recovery, according to pros at the National Association of the Remodeling Industry (aka the people who actually swing the hammers).
Which upgrades buyers are thirsting for, straight from REALTORS® in the trenches.
And how much of that renovation cash you can realistically expect to recoup if you decide to cash out and list.
Now for the big picture: Americans dropped an eye-watering $603 billion in 2024 on remodeling. That’s not a typo. That’s “we’re staying put, so let’s make it awesome” money.
Among NARI members, 42% reported increased demand for remodeling over the past two years. Translation: everyone decided at once that their house wasn’t cutting it. Even more telling, 57% said projects got bigger — not just a quick vanity swap, but full-scale “while we’re at it, let’s redo the whole floor” energy.
And buyers? They’re not in a compromising mood. According to REALTORS®, 46% of home buyers are less willing to overlook a home’s condition. The HGTV effect is real. People want turnkey. They do not want “character.”
For cost comparisons, contractors were asked to base estimates on a pretty standard setup: a 2,300-square-foot home (the U.S. average per Census data), built after 1978, with no lurking horror-movie surprises behind the drywall. Materials are solid, normal quality — not bargain-bin, not Kardashian-level luxury. Think practical, not penthouse.
Remodeling isn’t just about aesthetics anymore. It’s about leverage. Comfort now, stronger position later. Fix what drives you crazy, boost the value, and maybe — just maybe — enjoy your house like it’s 1998 and everything still works.
There’s no single playbook for remodeling. Homeowners tackle projects in different ways — cosmetic refreshes, structural overhauls, strategic upgrades — and there are just as many ways to measure whether those moves actually paid off.
To quantify the emotional ROI, the National Association of Realtors (NAR) developed a “Joy Score” for each project, based on how homeowners felt after completion. The results? Forty-three percent reported feeling happy, 38 percent said satisfied, and the typical project landed at a strong 8.2 out of 10.
Three upgrades earned a perfect 10 out of 10:
* Adding a primary bedroom suite
* Upgrading the kitchen
* Installing new roofing
On the financial side, REALTORS® estimated how much value each renovation would likely add at resale. NAR then calculated a Recovered Project Cost percentage by comparing that projected resale value to the average project cost data supplied by members of the National Association of the Remodeling Industry (NARI).
Example: The highest cost recovery recorded was 100% — achieved by installing a new steel entry door. In other words, in that case, homeowners were projected to recoup every dollar invested when selling.
The Joy Index really is really real. You spend a lot of time in your home, and many improvements can improve your everyday life, in a tangible real way even if they don’t return a solid tangible increase in sale price at the time of closing, they will increase the number of buyers who could be interested in your property, and the overall appeal of your property.
The pattern is clear: buyers are prioritizing functional, high-visibility spaces and big-ticket exterior systems. Cosmetic freshness matters — but so does infrastructure.
Buyers are savv and most of them ahve buyers representation- that means they will be getting sage advice from an exclusive buyers agent, a home inspector, and countless family members. Most likely they will be getting financing, so they will have an appraiser vist the property, so they will gice you credit for your sweet closed loop geothermal heating system, your 200 amp panel upgrade or your brand new composite decking.
Most folks I work with are living in their largest asset, and they want to maximize the potential profit from a sale. The numbers are clear the only thing that nets you a return on your investment is a new front door. Or even better, just paint the one you have red, and count your money all the way to the bank.
If your house is older and you’ve lived in it for a while, I tell Sellers that is is important to improve the overall condition to a level that it can be financed by government insured financing. That means broadening your buyer pool to include FHA, MISHDA, VA, and Rural Development types of financing.
These repairs include, making sure there is no chipped or pealing paint anywhere, installing GFI protectors for any electrical outlets within 6 feet of a water source, making alls teps that have more than two rises have a hand railing. Most of these things can be done by a home owner for little cost and can help attract more buyers and make clsoing the transaction easier.
In Winter 2024, HouseLogic.com conducted an online survey of homeowners who had recently completed a remodeling project. A total of 806 respondents participated.
A Joy Score was calculated to quantify homeowner satisfaction. The score combines the percentage of respondents who reported feeling either happy or satisfied upon completion of their project. That combined percentage was divided by 10 to generate a standardized ranking between 1 and 10. Higher scores indicate greater homeowner-reported satisfaction.
National Association of the Remodeling Industry (NARI) Cost Survey
In Summer 2024, NARI distributed a project cost survey to its member companies, receiving 177 responses.
Participants were instructed to base estimates on the following standardized assumptions:
The home is in good condition with no unforeseen issues affecting cost
The property is a 2,300-square-foot home (the U.S. average per Census data)
The home was built after 1978
There are no hidden structural or mechanical complications
Materials reflect standard or typical quality, with limited inclusion of “better-quality” finishes
No ultra-luxury or top-tier installations were included
These parameters were designed to ensure consistency and broad applicability of the cost data.
National Association of Realtors (NAR) Value Survey
Also in Summer 2024, NAR distributed a remodeling value survey to a random sample of 100,000 members. A total of 4,005 responses were received, resulting in an adjusted response rate of 4.0%.
Respondents were asked to estimate resale value impact based on median project cost data provided by NARI. The same standardized assumptions were applied, including a 2,300-square-foot home benchmark consistent with U.S. Census averages.
Statistical Approach
The primary measure of central tendency used throughout this report is the median. The median represents the midpoint in a distribution — the value at which half of responses fall above and half fall below. This measure minimizes distortion from extreme outliers and provides a more stable representation of typical project costs and value estimates.
Jeff Bucholtz is a Real Estate Broker based in Three Oaks MI.
He has sold more than 100 Million Dollars in Real Estate.
He is the Broker and owner of Freedom Realty.
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