Which Home Renovations Increase Property Value the Most?

Home renovations can be a smart way to invest in your property, but not all upgrades deliver the same return. If you’re planning to sell your home in the future or simply want to maximize its worth, choosing the right improvements is key.

Some projects improve curb appeal right away. Others help save money on energy bills over time. Some also add modern features with smart home devices.

At ADS Building & Remodeling, we help homeowners in Illinois make smart renovation choices. Our goal is to increase property value, improve comfort, and lower energy costs.

Our team has years of experience. We know which upgrades give the best return. We also know how to do them well. You can trust our craftsmanship.

Kitchen and Bathroom Upgrades – The Best Investment

The kitchen and bathroom remain the two most influential spaces when it comes to resale value. Buyers often focus on these areas first, and modern, functional designs can significantly tip the scales in your favor.

Best upgrades to consider:

• Replace outdated countertops with quartz, granite, or other durable surfaces.
• Refresh cabinets with a new coat of paint, upgraded hardware, or full replacements if necessary.
• Install energy-efficient appliances that help reduce energy costs while looking sleek.
• Update faucets, sinks, and showerheads for a polished, modern touch.
• Incorporate under-cabinet lighting and stylish pendants to enhance ambiance.

Potential ROI:

• A minor kitchen remodel can yield an impressive 81% return on investment (ROI)
• A mid-range bathroom remodel typically brings 60-70% ROI

By combining beauty and function, these spaces attract buyers. They are willing to pay more for a home that is ready to move into.

Energy-Efficient Improvements – Lower Bills, Higher Value

Today's homebuyers are increasingly focused on efficiency. Rising utility rates make homeowners look for ways to save money on monthly energy bills. Energy-efficient updates lower operating costs while positioning your home as eco-friendly.

Best energy-efficient updates:

• Replace old windows with double-pane, energy-efficient models to cut drafts.
• Add insulation to attics and walls for improved heating and cooling retention.
• Install a smart thermostat (like Nest or Ecobee) to avoid wasted energy.
• Upgrade to LED lighting across the entire home for both cost savings and longevity.
• Replace water heaters with energy-efficient tankless models.

Potential ROI:

• New windows can recoup 70-75% of their cost
• Proper insulation upgrades often bring 100%+ ROI due to substantial energy savings.

These improvements not only increase resale value but also help homeowners save money each month. They do this by lowering heating and cooling costs.

Curb Appeal: First Impressions Matter

When buyers pull up to your home, their first impression can set the tone for the entire showing. Exterior updates are often relatively inexpensive but yield big results.

Best exterior improvements:

• Replace or repaint the front door for a welcoming entrance.
• Install a modern garage door that complements the home's design.
• Refresh landscaping with plants, flowers, and fresh mulch.
• Power wash siding, driveways, and walkways for a crisp, clean appearance.

Potential ROI:

• A new front door can deliver about 90% ROI.
• A new garage door often ranks highest, with 93-97% ROI.

Even modest investments in curb appeal make your home more inviting and help it stand out in competitive markets.

Smart Home Technology – A Modern Must-Have

As technology advances, smart home devices have moved from luxury to expectation. Buyers appreciate features that provide convenience, security, and the ability to monitor energy costs.

Top Smart Home Upgrades:

• Smart locks and security systems that allow remote access and monitoring.
• Video doorbells (Ring, Nest, or Google Home–integrated systems).
• Smart thermostats to manage heating and cooling efficiently.
• Smart lighting systems that adjust brightness and schedules automatically.
• Smart speakers like Amazon Echo or Google Home that integrate with other devices.

Potential ROI:

• Smart features don't always provide a direct dollar-for-dollar return, but they make homes sell faster and appeal strongly to younger buyers. When marketed correctly, they add perceived value because they offer convenience and help homeowners save money on energy bills.

Basement and Attic Conversions – Extra Living Space

One of the surest ways to increase property value is to add usable square footage. Basement and attic conversions can become cozy retreats or useful bedrooms. These changes turn unused spaces into popular living areas.

Ideas for Conversions:

• Transform a basement into a family room, home office, or gym.
• Add a guest suite or in-law apartment with a private bathroom and kitchenette.
• Convert an attic into a quiet reading lounge or extra bedroom.
• Create a rental unit to generate additional income.

Potential ROI:

• AA finished basement can yield 70%+ ROI
• An attic bedroom conversion brings about 75% ROI

Additional Renovations That Add Value

While kitchens, baths, and energy efficiency dominate, other improvements can also increase your home’s resale potential.

• Deck additions: Outdoor living space is highly desirable and can deliver a 65–70% ROI.
• Roof replacements: A new roof provides peace of mind for buyers and reduces insurance concerns.
• Flooring upgrades: Replacing carpet with hardwood or luxury vinyl plank improves durability and appeal.
• Interior paint: Fresh, neutral colors make spaces feel modern and well-maintained.

Final Thoughts

Not all renovations hold the same value, and the smartest projects balance style, efficiency, and functionality. Updating kitchens and bathrooms can help increase resale value.

Investing in energy-efficient upgrades is also a smart choice. Adding modern smart home devices can lower energy costs.

Improving your home's appearance can make it more attractive. This includes fixing up areas like basements or attics that you don't use. These changes can help your property stand out in a crowded market.

• When you work with ADS Building & Remodeling, you get more than just a contractor. You get a trusted team that helps you make smart updates that are worth it. If you want to remodel your kitchen, add smart home features, or turn your basement into a living space, we can help. We deliver results that add comfort now and value in the future.