How to Increase Home Value in East Tennessee: Smart Upgrades for Sellers

If you are thinking about putting your home on the market in Knoxville, Chattanooga, or the Tri-Cities in the next 6 to 12 months, you are probably asking the big question: What should I fix, and what should I leave alone?

It is easy to get caught up in the HGTV mindset, thinking you need to tear down walls or install a chef’s kitchen to get a good price for your home. But here in East Tennessee, the numbers tell a different story. “Value” often comes down to first impressions and practical updates that handle our unique climate and terrain.

Let’s walk through the renovations and improvements that actually move the needle in our local market.

The East Tennessee Real Estate Landscape: What Buyers Want Now

Right now, the East Tennessee real estate market is seeing a specific type of demand. While we have enjoyed steady growth, buyers are becoming more budget-conscious regarding immediate repairs. With interest rates where they are, many buyers are looking for “move-in ready” rather than “fixer-upper.” They want the mountain views and the outdoor access, but they don’t want to inherit a project list.

However, labor and material costs have risen, which changes the math for you as if you are selling your home in East Tennessee. Years ago, you might have gutted a house to flip it for a massive profit. Today, the smartest play is strategic updates rather than total overhauls.

Data for the East South Central region consistently suggests that exterior projects often outperform interior luxury remodels in terms of Return on Investment (ROI). Buyers here value a solid, good-looking exterior that promises low maintenance over a high-end luxury bathroom they might just want to change later anyway.

First Impressions: High-ROI Exterior Upgrades

When we talk about curb appeal in East Tennessee, we aren’t just talking about mowing the lawn. We are talking about the projects that statistically offer the highest return on investment. If you have a limited budget, the exterior is usually the best place to spend it.

Believe it or not, the absolute heavyweight champion of ROI in our region is often the garage door. Replacing an old, dented door with a modern, upgraded model can recoup nearly 194% of the cost according to regional data. It transforms the face of the home instantly.

Close behind that is the front entry door. Swapping a dated wood door for a steel entry door not only boosts security and energy efficiency but typically recoups around 188% of the cost. It is a relatively small purchase that signals to buyers that the home is secure and updated.

If you are looking for an aesthetic pop that fits the local vibe, consider manufactured stone veneer. Adding stone accents to the entryway or lower siding aligns perfectly with the rustic, mountain aesthetic that is so popular from the Smokies to the Cumberland Plateau. It feels permanent and high-quality, which is exactly what buyers want to see when they pull into the driveway.

Landscaping for the East Tennessee Climate

Once the house looks sharp, you need to look at the ground it sits on. Landscaping here isn’t just about pretty flowers; it is about proving the home works with our environment. We are in a transition zone (generally Zone 6b/7a), which means we get four distinct seasons and plenty of humidity.

It is smart to stick with native plants that can handle our weather patterns without constant watering. Buyers appreciate seeing Dogwoods, Redbuds, or Purple Coneflowers. These plants look like they belong here and suggest low maintenance to a future owner.

More importantly, you must address drainage. Because so much of East Tennessee is hilly, water management is a massive deal. If your yard slopes toward the foundation, savvy buyers (and their inspectors) will spot it immediately. Ensuring gutters are clean and downspouts divert water away from the home is critical.

Finally, never underestimate the power of fresh mulch and crisp edging. It is the cheapest facelift you can give a home, making the yard look professionally managed for just a few hundred dollars.

Interior Updates: The ‘Minor’ Remodel Strategy

When we move inside, the strategy shifts. You might think you need a $50,000 kitchen overhaul to compete, but the data says otherwise. In our region, a “minor” kitchen remodel often recoups far more of its cost—around 96%—than a major, upscale one, which often drops below 60% ROI.

A minor remodel focuses on the face of the room. Instead of tearing out cabinets, look into refacing them or simply painting them and adding modern hardware. If your appliances are mismatched or dated, swapping them for a cohesive stainless steel set goes a long way.

The same logic applies to bathrooms. You usually don’t need to demo the tile. A new vanity, updated lighting, and re-grouting the existing shower tile can make the room feel brand new. The goal is to avoid “over-improving” for your neighborhood. If you put high-end marble in a neighborhood of mid-range homes, you likely won’t get that money back.

Embracing the Lifestyle: Decks and Outdoor Spaces

We live in one of the most beautiful parts of the country, and buyers want to experience that. Outdoor living spaces are less of a luxury and more of an expectation here, especially in homes that have any sort of elevation or view.

Adding a wood or composite deck is a strong investment, often recouping about 83% of the cost. If your home is on a hill, a sturdy deck that overlooks the tree line is a major selling point.

However, we also have to be real about the Tennessee climate—specifically the mosquitoes and the humidity. Screened-in porches are incredibly popular because they allow homeowners to enjoy the outdoors without being eaten alive in July. Even simple additions, like a designated fire pit area or paver patio, help buyers visualize themselves enjoying the cool autumn evenings.

Invisible Value: Critical Maintenance for Older Homes

While granite countertops are nice, nothing kills a deal faster than a wet crawl space or a hidden structural issue. East Tennessee has a lot of older housing stock, and with our humid summers, moisture control is a non-negotiable issue. This is exactly why being thorough with seller disclosures in East Tennessee is so important; you are legally required to note any known material defects, and items like foundation health or past water damage are at the top of every buyer’s checklist.

Addressing these “invisible” factors early prevents a deal from falling through during the inspection phase. Here is what you need to focus on:

• Crawl Spaces: Ensure yours is dry. Encapsulation is a buzzword that buyers love to hear because it prevents mold, protects the structure, and improves air quality. Having a clean record of moisture management makes your seller disclosures in East Tennessee much more appealing to cautious buyers.
• HVAC: Our weather fluctuates wildly. If your unit is on its last legs, buyers will likely demand a credit to replace it. A well-maintained system is a major selling point.
• Settling: With our clay soil and steep slopes, minor settling is common. However, cracks in drywall or sticking doors can scare people. It is better to get these checked or repaired before listing rather than having to disclose them as active issues.
• Electrical/Plumbing: If you own a historic home in Knoxville or Chattanooga, ensure you don’t have active knob-and-tube wiring or galvanized pipes. These can make the home uninsurable for the new owner, creating a major hurdle during the closing process.

Budget-Friendly ‘Joy’ Upgrades for Listing

Finally, let’s talk about the finishing touches. These are the low-cost tweaks that create that emotional connection—the “joy” factor—when a buyer walks in.

Paint is your best friend. Stick to warm neutrals like cream or “greige.” These tones brighten the interior and make spaces feel larger. Swap out the lighting next; getting rid of “boob lights” or builder-grade brass in favor of matte black or brushed nickel fixtures instantly modernizes a room.

For flooring, Tennessee buyers overwhelmingly prefer hardwoods over carpet. If you have hardwood floors hiding under carpet, rip the carpet up and refinish the wood. If refinishing isn’t an option, deep clean what you have. A clutter-free, deep-cleaned home tells the buyer that the property has been loved and well-maintained.

The Bottom Line: Planning for Your Net Proceeds

As you calculate the potential return on these upgrades, it is equally important to factor in your final transaction expenses. Understanding the typical seller closing costs in East Tennessee will give you a much clearer picture of your “walk-away” number. In the Volunteer State, sellers should generally budget between 6% and 9% of the final sale price for these expenses.

While the largest portion of this is usually the real estate commission, several other regional factors come into play:

• State Transfer Tax: Tennessee charges a tax of $0.37 per $100 of the sale price (e.g., $1,110 on a $300,000 home). While this is often a buyer’s expense, it is frequently negotiated during the offer process.
• Title & Settlement Fees: You will likely encounter title search fees and an owner’s title insurance policy, which typically costs around 0.5% to 1% of the property value.
• Prorated Expenses: You’ll be responsible for property taxes and any HOA dues calculated right up to the day of closing.
• Recording Fees: These are modest government fees, usually around $150, to legally file the deed and mortgage release.

By combining strategic, high-ROI improvements with a firm grasp of these seller closing costs in East Tennessee, you can ensure that your move to your next home is as financially smooth as your sale.

FAQs

What adds the most value to a house in East Tennessee?

Based on regional Cost vs. Value data, exterior replacements offer the highest financial return. Specifically, replacing a garage door or installing a steel entry door tends to recoup the most money, sometimes nearly doubling the investment value, because they drastically improve curb appeal and security.

Is adding a pool a good investment in East Tennessee?

Generally, no. While a pool can be a nice lifestyle feature, it rarely increases home value enough to cover the cost of installation. Many buyers view pools as a maintenance liability or a safety hazard, whereas a deck or patio appeals to a much wider audience.

How much does a kitchen remodel increase home value?

It depends heavily on the scope of the project. A minor kitchen remodel (painting cabinets, new hardware, new appliances) yields a very high ROI, often around 96%. However, a major luxury overhaul usually sees a much lower return, meaning you likely won’t get your money back on a massive $60,000 renovation.