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Measuring Buyer Appeal and ROI: Which Remodeling Projects to Prioritize

Measuring Buyer Appeal and ROI: Which Remodeling Projects to Prioritize

May 21, 2025

By Melissa Dittmann Tracey

Homeowners across the country continue to invest heavily in renovations. They spent an estimated $603 billion in 2024 alone, according to the 2025 Remodeling Impact Report from the National Association of REALTORS® and the National Association of the Remodeling Industry. The report offers insights of which projects could offer homeowners the greatest return—and satisfaction—with their home. It also uncovers findings that could present an opportunity to start meaningful conversations with potential sellers about projects to prioritize, as well as guide buyers in recognizing quality upgrades.

Top Projects for ROI

If sellers are looking to maximize their resale value, they may want to hone in on high-ROI projects. These renovations recoup the largest share of their cost at resale. Here are the projects that topped this year’s report:

  • New steel front door: 100% cost recovery
  • Closet renovation: 83%
  • New fiberglass front door: 80%
  • Vinyl window replacement: 74%
  • Wood window replacement: 71%

These improvements are often less expensive than full-room remodels, yet still can offer strong visual and functional appeal to buyers. That’s important considering that nearly half of buyers say they’re less willing to compromise on a home’s condition in their real estate purchase.

Top Projects for Homeowner Satisfaction

For clients who plan to stay in their homes before selling and who may be looking for lifestyle upgrades, the report also highlights “Joy Scores.” On a scale of 1 to 10, homeowners reflected on how much happiness they gained from completed remodeling projects.

Here are the projects that scored a perfect 10:

  • A primary bedroom suite addition
  • Kitchen upgrade
  • New roofing

Top Agent-Recommended Projects

Real estate professionals play a pivotal role in helping clients focus on improvements that align with buyer expectations and local market trends. According to the report, the most commonly recommended pre-sale updates made by agents include:

  • Painting the entire home (50%)
  • Painting a single room (41%)
  • Installing new roofing (37%)

Projects Seeing Increased Demand

Some homeowners are looking to spend big bucks on their renovations. Large-scale renovations are also trending, particularly in areas that are often carefully scrutinized by home buyers. Real estate professionals report a rise in interest for renovating the following areas:

  • Kitchen upgrades (48%)
  • New roofing (43%)
  • Bathroom renovations (35%)

Why Homeowners Are Remodeling

Homeowners are renovating for a variety of reasons. According to the report, these are the top motivators:

  • Upgrading worn-out finishes (27%)
  • Improving energy efficiency (19%)
  • Desiring a change (18%)
  • Preparing to sell within 2 years (18%)
Melissa Dittmann Tracey

Melissa Dittmann Tracey

ABOUT ME:
Melissa Dittmann Tracey is an award-winning journalist who covers the latest real estate news and trends. You can hear her weekly on the syndicated radio show and podcast, Real Estate Today, in her housing trends segment, “Hot or Not?” She is the creator of the Styled, Staged & Sold blog and a frequent contributor to Houselogic.com and REALTOR Magazine. She’s also the host of The Housing Muse podcast at http://www.housingmuse.com. Follow her on Instagram or X @housingmuse.

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