In today’s competitive housing market, homeowners are always looking for ways to boost their property’s value. A recent Realtor.com report sheds light on the renovations that pack the biggest punch when it comes to listing prices. The analysis, which examined listing descriptions of single-family homes across the U.S. focusing on renovation-related keywords, reveals some surprising insights that challenge conventional wisdom about home improvements.
Contrary to popular belief, kitchens and bathrooms aren’t always the top performers. While they remain important, the report found that
landscaping
takes the crown as the most effective value-boosting renovation. Homes featuring “new landscape” commanded an impressive 8.1% premium over similar properties, translating to a $34,794 increase for the median-priced home. As real estate expert Terry Haas points out, “If the front of your home isn’t inviting, buyers may not even take the time to explore inside. Curb appeal is everything.”Kitchen renovations, long considered the gold standard of home improvements, still hold a strong position, claiming the second spot on the list. Listings mentioning a “renovated kitchen” saw a 7% boost, or $29,891 for the median-priced home. Interestingly, the term “remodeled kitchen” had a smaller impact, increasing listings by just 4%, highlighting the importance of using specific and appealing keywords in your listing descriptions.
Bathroom updates also proved valuable, with both “remodeled bathroom” and “new bath” boosting listing prices by about 3%. Haas emphasizes that kitchens and bathrooms are focal points for buyers upon entering a home, reinforcing the importance of making a positive first impression in these areas.
The study suggests a clear trend:
visible updates generally outperform functional renovations regarding price impact.
“Buyers are willing to pay a premium for things they can see and experience during a tour,” Haas explains. This is why a new roof, despite its practical importance, only increased listing prices by 1.1% or $4,585 for the median-priced home.Other high-performing renovations include:
*
New driveways
(5.9% boost)*
New appliances
(3.6% boost)*
New decks
(3.6% boost)*
Updated lighting
(2.2% boost)Even seemingly minor updates like updated lighting showed a meaningful impact. Realtor.com senior economist Ralph McLaughlin emphasizes the importance of curb appeal, stating, “The land surrounding a home is also usable space that buyers value, and it’s often the first characteristic they see.”
The research suggests a strategic approach for homeowners looking to maximize their property’s value. Prioritizing visible, high-impact renovations – particularly those that enhance curb appeal – could yield the best returns when it’s time to sell. By focusing on what buyers can see and experience during a tour, homeowners can increase their chances of securing a top price for their property.
