Remodeling Costs
8
min read

What Adds the Most Value to a Home? A Contractor's Honest Answer

Written by
McKay Prince
Published on
May 8, 2026

Whether you're getting ready to sell, building equity for the future, or trying to make a smart investment decision, the question is the same: where should you spend your money? What actually moves the needle on a home's value?

As a design-build remodeling contractor based in Southern Utah, I get asked this all the time. And the honest answer is a little more nuanced than what most blog posts will tell you. So let's get into it.

First, Know Who You're Remodeling For

The question of what adds value to a home looks different depending on your goal. 

Are you preparing to list your home in the next year or two? 

Are you planning to stay for the long haul and want to improve your quality of life? 

Are you an investor or property owner looking to maximize return?

Each of those situations calls for a different approach. 

Someone planning to sell soon should prioritize improvements that appeal to the broadest possible pool of buyers. 

Someone staying in their home for another decade can afford to invest in things that genuinely improve daily life, even if they don't deliver dollar-for-dollar return at resale. 

An investor is running a different math problem entirely.

At Hyperpeak, the first thing we do on any project call is ask about your goals. The right remodel depends entirely on the right answer to that question.

cost vs. value 2025 report from the Journal of Light Construction
Cost vs. Value 2025 report from The Journal of Light Construction

What the Data Says: The 2025 Cost vs. Value Report

The Journal of Light Construction releases an annual Cost vs. Value Report that tracks how much common remodeling projects cost compared to how much value they add at resale. It's one of the most useful data tools available to homeowners, and the 2025 numbers tell a clear story.

9 of the top 10 highest-ROI projects this year are exterior improvements. The number one project, a standard garage door replacement, costs an average of $4,672 and adds $12,526 in resale value, a 268% return. A new steel entry door comes in at 216% ROI. Manufactured stone veneer returns 208%. These numbers are not flukes. Exterior projects have dominated this report for years because buyers form their first impression before they ever walk through the door.

For interior projects, a minor kitchen remodel is the standout performer at 113% ROI nationally. That typically means refreshing cabinet fronts, updating hardware, replacing countertops, and upgrading appliances without changing the room's footprint. A midrange bathroom remodel returns around 80%. The pattern holds: targeted, cost-conscious updates consistently outperform major overhauls on pure return.

How Utah Stacks Up Against the National Numbers

One important caveat: the Mountain region, which includes Utah, has actually historically tracked below national averages. Part of the reason might come down to market dynamics unique to fast-growing Western states. Utah has seen significant in-migration over the past several years, with buyers relocating from California, New York, and other high-cost markets.

That wave of demand drove home prices up sharply on its own, without any remodeling required. When base values inflate that quickly from outside pressure, the percentage return on individual improvements tends to compress. Then when the market cools, buyers get more selective and improvement values soften further. Southern Utah is not tracked as its own market in the report, so use these national figures as guidance, not guarantees, in addition to what you know about your specific area and price point.

That said, two project categories consistently outperform the national average in the Mountain region: vinyl siding replacement and basement finishing. Vinyl siding returned 107% in the Mountain region in 2025, compared to a 97% national average. Basement finishing tracked similarly above average. If either of those applies to your home, the regional data is actually working in your favor.

The High-Value Moves Most Homeowners Overlook

After years of remodeling homes across Southern Utah, I have seen what actually moves perceived value in person, not just on paper. Some of it lines up with the data. Some of it surprises people.

Fresh exterior paint and clean landscaping are two of the highest-leverage investments you can make before a sale. They're the first things buyers see, and they set the emotional tone for everything that follows. Inside, updating outlets, outlet covers, and switch plates is one of the cheapest improvements you can make, and one of the most overlooked. Old, yellowed, or mismatched electrical plates signal neglect. New ones signal care. If you DIY it, it will take you a few hours and about a $200 Home Depot trip. If you hire it out, you are looking at around $1,500. 

Updating hardware finishes throughout the home, drawer pulls, cabinet handles, faucets, door hardware, makes a space feel current without a full remodel and with significantly less cost. Interior paint in neutral, broadly appealing tones does the same. In my opinion, the most underrated home value update is new baseboard and casing paired with a fresh coat of paint. It's a relatively modest investment coming in at around $1,500-$10,000 (depending on it you DIY vs hire it out) that completely changes how finished and polished a space feels.

Real Projects, Real Numbers: What We've Seen in Southern Utah

We believe in showing our work, so here are two real projects from our portfolio.

Before and After Results from An Attached ADU Kitchen Addition Project in Hurricane, UT
Before and After Results from An Attached ADU Kitchen Addition Project in Hurricane, UT

Hurricane, UT: Attached ADU Kitchen Addition

A homeowner purchased a property with an existing attached ADU space that lacked a kitchen, limiting its usability and its appeal to buyers. We added a full kitchen to that ADU space for $38,600. The home was purchased for around $350,000 and sold for approximately $500,000. That's $150,000 in added value from a $38,600 investment. The ADU kitchen made the property functional as a multigenerational home or income-generating rental, which dramatically expanded the buyer pool in a market where that kind of flexibility commands a real premium.

Finished Kitchen and Living Room from a Full Home Fix & Flip in Parowan, UT
Finished Kitchen and Living Room from a Full Home Fix & Flip in Parowan, UT

Parowan, UT: Full Home Fix and Flip

On a full home renovation in Parowan, the property was purchased for approximately $120,000. With $210,000 in repairs and renovations, the home sold for around $420,000, netting roughly $90,000 in profit on a complete transformation. Projects like this require discipline: knowing what the market will support, making selections that appeal to buyers rather than personal taste, and staying within a scope that makes financial sense for the neighborhood.

What Doesn't Add Value (Even When Homeowners Think It Will)

This is where experience matters as much as data.

One of the most consistent patterns we see is the gap between what a homeowner personally loves and what actually adds broad market value. Highly specific tile selections, bold or unusual paint colors, custom built-ins designed around a particular lifestyle, these things can feel valuable to the person who chose them, and sometimes they genuinely are. But often they narrow your buyer pool rather than widen it.

This is exactly why we now require an interior designer as part of the process on every project at Hyperpeak Remodeling. Early in our business, we had clients select finishes we knew were risky, and the results proved it. A designer brings market awareness to finish selections, steering clients toward choices that feel personal and elevated while still appealing to future buyers. It protects the homeowner's investment.

We've also seen renovation decisions that actively hurt a home's value. One client wanted to add several non-conforming rooms with mini split units in each, intending to rent them out. The problem: they weren't legal bedrooms. They didn't meet egress, size, or code requirements to be listed as bedrooms, which created real problems for the appraisal and will create even bigger problems at resale. Rental income potential is a legitimate value driver in Southern Utah, but only when it's done right.

The broader principle: the more specialized a renovation, the more carefully you need to think about who your eventual buyer is and whether they'll share your vision.

Finished Living Room Space from a Full Home Remodel in St. George, UT
Finished Living Room Space from a Full Home Remodel in St. George, UT

When ROI Isn't the Only Metric That Matters

If you're planning to live in your home for years, the calculus changes. A kitchen that makes cooking enjoyable, a bathroom that feels like a retreat, a finished basement that becomes your family's favorite room, these things have real value that doesn't show up in a resale percentage.

I personally talk with every client about this distinction early in the process. If your goal is to maximize resale value, I’ll tell you exactly how to do that. If your goal is to improve how you live in your home, that's a different conversation, and a completely valid one. The key is being honest with yourself about which one you're actually trying to accomplish, so your budget goes toward the right things.

The Bottom Line

If you're trying to maximize resale value, start outside. Curb appeal improvements return more per dollar than almost anything else. Move inward with targeted kitchen and bathroom updates that refresh without over-customizing. Don't underestimate the small stuff: paint, hardware, baseboards, outlet covers. And work with professionals who bring market awareness to material selections, not just personal taste.

If you're remodeling for the long haul, invest most of your money where you spend the most time. Prioritize the spaces you use every day. Just stay aware of where your project sits relative to the neighborhood ceiling, because every market has one.

Either way, the best remodeling decisions start with a clear goal and an honest conversation. If you're in St. George (any of the surrounding areas) and are trying to figure out where to spend your money, that's exactly the conversation we start with on every free phone estimate.

Ready to find out what your St. George home is worth investing in? Schedule your free phone estimate with Hyperpeak Remodeling.

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McKay Prince
General Contractor | Owner

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