Is it worth upgrading an old house?

 Is It Worth Upgrading an Old House? A 2025 Homeowner's Guide

Upgrading an old house can be a rewarding investment—or an expensive mistake. Whether you’re preparing to sell or planning to live in your home for years to come, deciding whether to renovate is one of the most important choices a homeowner can make. In this guide, we explore when it’s worth upgrading, what projects offer the best return on investment (ROI), and how to align your renovations with current market trends.

1. Why Homeowners Consider Upgrading

Older homes often come with character, charm, and solid construction. However, they may also include outdated systems, inefficient layouts, and old wiring or plumbing. Renovating can:

• Increase property value
  
  

• Improve energy efficiency
  
  

• Enhance curb appeal
  
  

• Modernize interiors
  
  

According to the National Association of Home Builders (NAHB), remodeling activity continues to rise in 2025, with homeowners investing in both cosmetic and structural improvements.

2. What Renovations Offer the Best ROI?

Not all upgrades are created equal. Focus on improvements that boost value and appeal to buyers:

• Minor kitchen remodel – Average ROI: 71.2%
  
  

• Bathroom update – ROI: 66.7%
  
  

• Exterior improvements (paint, siding, landscaping) – ROI: 60–80%
  
  

• Energy-efficient upgrades – Can lower utility bills and attract eco-conscious buyers
  
  

 Curious about your home’s potential after upgrades? Get a free home value estimate and see how much value your improvements could add.

The Remodeling 2024 Cost vs. Value Report is a valuable resource for homeowners evaluating project ROI.

3. When Upgrading Makes Sense

Renovating an older home is usually worth it if:

• You plan to live there for 5+ years
  
  

• The neighborhood is in demand
  
  

• The foundation and structure are solid
  
  

• You’re targeting high-ROI projects
  
  

Pro Tip: Check your local housing market to see what buyers want. If you're in Chicago, our featured listings can help you see what upgrades other sellers are making.

4. When It’s Better to Sell As-Is

In some cases, selling your home without major upgrades may be the smarter move:

• Renovations would exceed 20% of home value
  
  

• Structural issues require expensive repairs
  
  

• You need to sell quickly
  
  

If speed matters, consider getting a cash offer for your home with no repairs or showings required.

The U.S. Department of Housing and Urban Development (HUD) provides resources to understand repair costs and safety standards.

5. Financing Home Upgrades

Renovations can be costly. Homeowners often use:

• Home equity loans
  
  

• HELOCs (Home Equity Line of Credit)
  
  

• Personal savings
  
  

• Energy-efficiency grants or tax credits
  
  

Explore EnergyStar.gov for federal incentives related to green upgrades like windows, HVAC systems, and solar panels.

6. Selling an Upgraded Home

Renovated homes tend to sell faster and at higher prices. In a competitive market like Chicago, upgrades can help your home stand out and justify a premium asking price.

Want to know if now is the time to sell? Our experts at Heart of Chicago Homes can walk you through local trends and buyer preferences.

Weigh the Costs vs. Benefits

Upgrading an old house can be an excellent investment—if done strategically. Focus on projects with high ROI, assess your timeline, and compare renovation costs to potential market value gains. When in doubt, consult a local real estate expert who can help you decide if it’s smarter to renovate or list your home as-is.

Curious About Your Home’s Value? Get a Free Estimate!

Wondering what your home is worth after upgrades or as-is? Get a free, no-obligation home value estimate based on the latest market trends.

Check your home’s value for free at HeartOfChicagoHomes.com or call/text (312) 361-8288.