Your home is likely your biggest investment, and in 2025, upgrading it could be your smartest resolution yet. Whether you're trying to prepare for the upcoming sale of your home, add general value, or improve your home's functionality for you and the rest of your family, renovating can add significant value. With the right approach, these upgrades can transform both your living space and your home's market position.
Resolution-Focused Improvements
If one of your resolutions is to become more energy conscious, consider applying that to your home. Investing in upgrades that help support the environment could help you decrease your overall utility bill and increase your home's value to potential buyers. According to EnergySage, installing solar panels can increase your home’s value by about 4% on average. This is particularly appealing to potential buyers, showcased in NAR’s March 2024 survey of its members regarding sustainability. The report reflected 57% of respondents valued energy efficiency promotion in listings.
HVAC optimization systems offer another path to efficiency. Consider installing smart thermostats, implementing zoning systems, or upgrading to more efficient units to help save on your utility bill.
Lifestyle and Wellness Features
If your new year's resolution is to invest in your physical health, there are many upgrades you can that would do so while also increasing your home's value. Installing a sauna or in-home gym can be particularly valuable. Outdoor living spaces prove valuable as well. Brian C. McHugh, Owner of McHugh Construction in Colorado concurs that a patio can bring an 80% return. “Outdoor living spaces can generate a great ROI for a homeowner if they are done properly and offer a unique value added to the home,” says McHugh.
Budget-Friendly Transformations
Monthly Improvement Plans
While renovations can be daunting for both you and your checkbook, they don't have to be. There are many budget-friendly projects you can invest in that could boost your home's overall value and your quality of life. Consider creating monthly improvement plans. That way, you can plan your budget ahead of time and become less overwhelmed by tackling small projects at a time. You don't have to do everything all at once, but making small monthly improvements can compound into a large renovation project before you know it.
DIY vs Professional Projects
When planning renovation projects, it's important to consider what you could do on your own versus what you would need a professional to do. Think about painting a few rooms to breathe new life into the space or updating the lighting and light fixtures around your home. While every situation is unique, a 2021 National Association of Realtors survey found that 63% of realtors recommend painting walls before listing, as fresh paint could speed up sales and increase offers. However, complex projects involving electrical, plumbing, or structural changes should always be handled by licensed professionals.
Maintain a detailed spreadsheet tracking all renovation expenses, including:
Modern home automation can significantly increase your property's appeal. Focus on:
Market Value Impact
According to Investopedia, home improvements can see ROI ranges from 30% to 103%, depending on the project. “To calculate return on investment, take the final assessed value of the home renovation and subtract it from the initial value of that space. This number is the ROI net,” American Pacific Mortgage suggests. It's important to note, it can be difficult to calculate ROI before you've sold your home.
If you're renovating your home with the intention of selling, it's important to keep buyers' preferences in mind. Chat with your realtor about the average buyer in your area or with other sellers in your neighborhood. Consider:
Consider analyzing the homes in the surrounding area. What is an offering you can invest in that other homes do not have? Focus on improvements that are:
Project Management
Creating a timeline for each project is crucial, especially if you're working towards a deadline. Set realistic project timelines with these guidelines:
When renovating, it’s important to maintain thorough records of your improvements. Make sure to:
As homeowners look ahead to the new year, investing in strategic home improvements isn't just about creating a more comfortable living space—it's about making smart financial decisions that pay dividends for years to come. Whether starting with small upgrades or tackling major renovations, each thoughtful improvement brings homes one step closer to reaching their full potential while building lasting value in an ever-evolving real estate market.