Not every home improvement adds value. Some cost $30k and add $10k to your sale price. Others cost $5k and add $8k. And some just make your house nicer to live in without moving the needle on resale at all.
I've worked on hundreds of remodels. Here's what actually matters when you sell - and what's just expensive personal preference.
High-ROI Projects (Good Investments)
These improvements typically return 70-100%+ of their cost when you sell. Some even return more than you spend.
Not a gut remodel - we're talking new paint, cabinet hardware, countertops, and appliances. Keep the layout. Spend $15k-25k, add $20k-30k in value. Buyers see "updated kitchen" and pay for it.
New vanity, toilet, fixtures, paint, and tile. Again, don't move walls. A dated bathroom screams "fixer-upper." An updated one says "move-in ready." $8k-15k spend returns most of it.
Fresh exterior paint, new front door, landscaping, clean gutters, power-washed siding. First impressions matter. Buyers decide if they're interested before they walk in. $3k-8k here can add $10k+ to your sale price.
Outdoor living space sells. A nice deck extends your living area and makes the house feel bigger. In Montana where we actually use decks, this is even more valuable. $10k-20k deck can add $12k-18k.
Weird but true. New garage door is one of the best ROI projects. It's visible from the street, signals "well-maintained," and costs relatively little. $1,500-3,000 spend, nearly full return.
In Montana, energy costs matter. New windows, insulation upgrades, efficient furnace - these sell. Buyers calculate monthly costs. Lower utility bills = higher offers. Plus potential rebates offset costs.
Mid-ROI Projects (Break Even or Slight Loss)
These improve your house but don't necessarily increase value dollar-for-dollar.
Master Suite Addition (50-60% ROI)
Adding a bedroom and bath helps, but you won't recoup the full $80k-150k cost. The value depends heavily on neighborhood - if comparable homes have 4 bedrooms, yours needs 4 too. But don't expect full return.
Basement Finishing (60-70% ROI)
Finished basement adds livable space, which buyers like. But it's still basement space - not as valuable as main-floor square footage. Spend $30k-50k, add maybe $25k-35k in value. Still worth it if you use the space while living there.
Major Kitchen Remodel (50-70% ROI)
Full gut job with custom cabinets, high-end appliances, new layout? You'll spend $50k-100k+ and get back maybe $40k-70k. This is about living in your dream kitchen, not making money on resale.
Low/No-ROI Projects (Personal Preference)
These might make your house nicer, but don't expect financial return.
Pools are divisive. Some buyers love them. Others see maintenance, liability, and kids' safety concerns. In Montana's climate, an outdoor pool is used 3-4 months max. Spend $40k-80k, add maybe $10k-20k in value. This is pure lifestyle choice.
Basic landscaping helps. But $30k in elaborate hardscaping, water features, and exotic plants? Buyers won't pay for your garden dreams. They'll rip it out and do their own thing. Spend $5k on clean, simple landscaping - not $30k.
That $60k spa bathroom with heated floors, steam shower, and custom tile? Gorgeous. But you'll recoup maybe $30k-40k. Buyers appreciate nice bathrooms, but they won't pay premium prices unless your whole house is luxury-tier.
Highly personal spaces that most buyers won't want or use the same way. You might spend $40k on a home theater and add $5k-10k in value. Build it if you'll enjoy it for years. Don't build it to sell.
The $150k kitchen in a $250k neighborhood? You won't get that money back. Buyers shop by neighborhood first. They won't pay $400k for a house in a $250k area just because you have marble counters.
What Buyers Actually Care About
Here's what moves houses faster and for more money, based on what I see buyers respond to:
1. Clean and Well-Maintained
Fresh paint, no deferred maintenance, everything works. This signals "easy owner" vs. "nightmare of hidden problems." Costs little, huge impact.
2. Neutral and Updated
Modern doesn't mean expensive. It means not dated. Gray/white paint, contemporary fixtures, clean lines. Buyers can see themselves living there.
3. Functional Layout
Open kitchen to living area, master bedroom with bath, laundry on main floor (or at least upper floor). These are expectations now, not luxuries.
4. Storage
Closets, garage space, pantry. Never sexy, always valuable. Buyers will pay more for a house with good storage.
5. Move-In Ready
Nothing major needs fixing. Roof is good, furnace works, no big projects looming. Buyers hate surprises and will lowball if they see work ahead.
The Golden Rule
Enjoy it. Don't obsess over ROI. But if you're selling in 1-3 years, focus on the high-ROI improvements that buyers actually pay for: updated kitchen/bath, curb appeal, energy efficiency, and clean/neutral finishes.
The Billings Market Reality
Montana isn't California or New York. Our price points are different. A $100k kitchen remodel in a $350k Billings house is over-improvement. But a $25k kitchen refresh in that same house? Perfect.
Know your neighborhood comps. If most houses on your street sell for $300k-350k, don't dump $200k into renovations hoping to sell for $600k. You're building equity the neighbors won't support.
What About Repairs?
Repairs aren't about ROI - they're about not losing money. A bad roof, failing furnace, foundation issues? Fix them or buyers will demand $20k off asking price (and they'll lowball the fix cost).
Repairs get you to market value. Improvements might push you above it - if you choose the right ones.
Planning a remodel? Let's talk about what makes sense for your house, your timeline, and your goals. We'll give you honest advice on where to spend and where to save.