6 Things to Keep in Mind When a Contractor Promises a Home Upgrade Will “Increase the Value”

Beyond promises of energy efficiency, curb appeal, and lower utility bills, you’ll often hear home improvement companies claiming that a particular upgrade will increase the value of your home. Some even offer handy online calculators to show just how much you stand to gain.

The truth is, putting a price tag on how much a specific improvement will boost your home’s value is tricky and inexact at best. So while the idea of a project paying for itself may sound great, it’s often more a sales tactic than solid math.

If you’re being sold on the value-boosting benefits of a home upgrade, pause before you sign on the dotted line. Here are six things worth keeping in mind before you assume it’s going to pay off in the end:

1) But 15% of What, Exactly?

Those improvement calculators might be fun to play with, but they’re only as accurate as the data you feed them. That “15% increase” might sound impressive—until you try to pin down what your home is actually worth.

Market value isn’t fixed; it’s shaped by what buyers are willing to pay in your specific market. So the only way to truly test and prove how much you’d be improving the value is by actually selling it. And if you’re calculating a 15% increase based on a number pulled from an online estimate or a hopeful hunch, you might be stacking ROI on top of wishful thinking; those sites aren’t exactly known for their pinpoint accuracy.

2) ROI Rarely Means a Profit.

Sure, whatever the home improvement contractor is selling you might increase the value…but there’s a good chance it won’t improve the value as much as the project cost you.

There are studies done annually on which home improvements produce the greatest return on investment, and they reveal a surprising truth: the vast majority of them don’t even return 100% of the cost, let alone a profit. Even the ones you’d think would increase the value more than they cost to do (like kitchen and bathroom updates) usually fall short.

3) Don’t Expect Windows to Wow.

New windows might help your home sell faster—or keep a picky buyer from nitpicking—but they’re rarely the type of feature that gets hearts racing. Most buyers assume the basics (windows, roof, HVAC) are in good shape. So while replacing foggy panes or putting on a new roof might be necessary or make sense, it’s not likely to drive your price through the roof.

4) It Could Be an Over-Improvement…

It’s tempting to go all-out on luxury finishes, but if you’re in a modest neighborhood, buyers might not pay extra for that imported tile or full brick exterior. Your home still has to appraise, and buyers are comparing it to the house next door with vinyl siding and a fresh coat of paint. Upgrades that outpace the market can leave you holding the (very expensive) bag.

5) Some “Upgrades” Can Scare Buyers Off.

Take solar panels for instance… You might love the savings, but some buyers worry about aesthetics, maintenance, or being stuck in a long-term lease with the solar company. Instead of seeing added value, they may just see added complications. And if they’re turned off enough to walk away, your pool of potential buyers shrinks.

6) Your Real Estate Agent Is Your Reality Check.

Before you spend five figures based on a promise of future value, talk to your agent. They can tell you what’s worth it in your market—and what’s just marketing fluff. A good agent knows what today’s buyers actually want and what they’re willing to pay for. Trust them to separate the wise investments from the wallet drainers.

By all means, improve your home! Make it comfier, greener, or more beautiful. But if you’re doing it for value, make sure that “value” isn’t just marketing spin. Bring in your agent early, ask tough questions, and think twice before believing the hype.