Smart improvements for today’s real estate market

Mortgage Bankers Association

Kitchen and bath updates, fresh paint, decluttering and curb appeal boost home value as buyers face steady interest rates

People considering buying or selling a home are facing a unique market. Real estate has been in flux for several years, and high interest rates have made borrowing more expensive.

The Mortgage Bankers Association projects 30-year mortgage rates will level off at 6.5 percent for the foreseeable future. That could disappoint buyers who were waiting for lower rates, but it may also push hesitant shoppers to act in 2025. Sellers, meanwhile, would be wise to make improvements that help their properties stand out and secure the best possible price.

Make kitchen and bath updates

The kitchen remains the heart of the home, and moderate upgrades such as resurfacing cabinets, changing fixtures or replacing countertops can give the space a refreshed look. Bathrooms are equally important. Katie Severance, author of The Brilliant Home Buyer, calls kitchens and baths “money rooms” because they add the most value.

Declutter living spaces

Removing unnecessary belongings can make rooms feel larger, which appeals to buyers, especially as open floor plans remain popular. A tidy, streamlined home also makes it easier for potential buyers to imagine themselves living there.

Add fresh paint

Painting is one of the most cost-effective renovations. According to HGTV, freshly painted rooms appear cleaner and more modern, making them attractive to buyers. Experts recommend neutral colors to appeal to the broadest audience.

Enhance curb appeal

A property’s exterior is the first thing buyers see in person or online. Homeowners should keep lawns maintained and consider adding colorful, low-maintenance plants to boost curb appeal.

Expand usable space

Finishing basements or attics, converting garages into living areas or adding a three-season room can increase livable square footage—another strong selling point.

With rates steady and competition expected to remain, homeowners can maximize resale value by making targeted improvements before listing their properties.