Why Remodeling Smart Matters in 2025
With construction costs, materials, and energy prices still fluctuating, Arizona homeowners are asking the big question:
Which remodel projects actually increase home value — and which ones just drain your wallet?
Our latest State 48 Homeowner episode dives into the Top 5 Remodels That Add the Most Value in Phoenix based on current market trends, real buyer feedback, and firsthand experience from the Klaus Team across Mesa, Gilbert, Chandler, Queen Creek, and the East Valley.
Kitchen Remodel or Refresh
No surprise here — kitchens remain the heart of every Arizona home.
Instead of a full gut job, most homeowners are seeing the best ROI from strategic kitchen refreshes:
- Painting or refacing cabinets
- Installing quartz or granite countertops
- Updating lighting and hardware
- Adding modern, energy-efficient appliances
“One of our sellers invested about $12,000 refreshing their kitchen with painted cabinets and quartz counters,” says Matt Klaus. “It became the star of our marketing photos and the home sold for $35,000 over asking.”
A light, bright kitchen that flows well with open living space is still the #1 return-on-investment project in Phoenix.
Bathroom Upgrades
Bathrooms sell homes.
Mid-range remodels featuring walk-in showers, updated tile, dual vanities, and efficient fixtures consistently return 60–70% ROI in resale value.
“We helped a seller in Mesa replace carpeted floors and dated fixtures for about $8,000,” says Veronica McMahan. “The appraisal came back $20,000 higher.”
Focus on clean, timeless finishes — think bright lighting, neutral tones, and water-saving features.
Energy Efficiency & Climate Upgrades
Phoenix heat makes energy efficiency upgrades one of the smartest investments you can make.
- Replace aging HVAC systems
- Add attic insulation or radiant barriers
- Install Low-E dual-pane windows
- Use smart thermostats and efficient ducting
“A client replaced a 20-year-old HVAC before listing,” says Matt Klaus. “Buyers immediately noticed walking into a cool home instead of a hot, stuffy one. It was a highlight in the listing and helped us get an offer above list the first weekend.”
These upgrades lower utility bills and make your home stand out to energy-conscious buyers.
Flooring Upgrades
Flooring defines the feel of a home.
Arizona buyers are drawn to continuous, durable materials like luxury vinyl plank (LVP), tile, or refinished hardwood that handle heat and dust.
“We replaced three different floor types with one seamless LVP throughout,” says Twila Edwards. “The home looked brand new and buyers commented on the flow.”
Simple consistency and quality installation can completely transform a space.
Curb Appeal & Exterior Enhancements
First impressions matter — and they often start with the garage door.
Exterior paint, upgraded entry doors, desert-friendly landscaping, and modern lighting can dramatically boost perceived value.
“We spent under $5,000 on paint, lighting, and stone accents for one listing,” recalls Dan Shelhamer. “Neighbors stopped by to ask for our painter’s number.”
Small, visible changes outside often lead to bigger offers inside.
Key Phoenix Remodeling Trends & Caveats
Before starting your next project, keep these 2025 market realities in mind:
- Pools aren’t automatic ROI. The pandemic-era pool premium has cooled; buyers like them, but they rarely return full cost.
- Don’t over-improve. Stay consistent with your neighborhood’s price point.
- Quality over flash. Choose materials that withstand sun and heat.
- Timeless beats trendy. Warm neutrals are replacing gray-on-gray; classic design stays valuable longer.
- Maintenance and efficiency matter. Low-water landscaping, durable exteriors, and energy savings are big selling points in Arizona.
“Don’t chase HGTV fads,” says Rob from the Klaus Team. “Focus on quality, light, and function. If it feels good to live in, it usually sells well too.”
The ROI Recap
Top 5 Remodels That Add Value in Phoenix:
1. Kitchen Remodel or Refresh
2. Bathroom Upgrades
3. Energy Efficiency & Climate Improvements
4. Flooring Upgrades
5. Curb Appeal & Exterior Enhancements
Whether you’re preparing to sell or simply improving your forever home, these projects bring both comfort and long-term value.
AUDIO EPISODE:
VIDEO EPISODE: