Are Split Level Homes Hard to Sell? 5 Updates That Actually Matter to Buyers

The problem isn’t the layout. The problem is that most split-levels haven’t been updated.

Buyers scroll past them on Zillow because they see wood paneling, cramped kitchens with walls everywhere, and dark spaces that feel like time capsules.

The question isn’t whether split-levels are hard to sell. The question is: have you made the updates that flip buyer perception from “dated relic” to “modern home with character”?

Jim’s house (the one that sold $80K over asking) started as a standard 1970s split-level with all the usual problems.

Let me show you exactly what made buyers fight over it.

Are Split Level Homes Hard to Sell? Here’s the Truth About Resale Value

Let’s talk numbers.

Split-levels can have a lower appraised value than comparable homes (and there’s a specific reason why). Appraisers value “below-grade” square footage (anything below ground level) at roughly 50% of above-grade space.

Since many split-levels have that lower level partially underground, you’re not getting full credit for all your livable space.

What this means: A 2,200 square foot split-level with 600 square feet below grade gets appraised as if it’s closer to 1,900 square feet. Meanwhile, a 1,900 square foot ranch with everything above grade? Full value.

The good news: This makes split-levels more affordable per livable square foot, which appeals to first-time buyers and families on a budget.

Jim’s split-level sold $80K over asking during a competitive market, but it was the renovations that made buyers compete for it, not just lucky timing.

Take a look at that split level house tour and you will see exactly what I mean.

Let’s take a look at 5 upgrades that are well worth your while in a split level home.

Split Level Kitchen Remodel: Why Opening the Floor Plan Changes Everything

This is the single biggest impact you can make.

Walk into any original split-level and you’ll find the same layout: tiny boxed-in kitchen separated from the living room by a load-bearing wall. Dark. Cramped. Depressing.

The fix: Remove that load bearing wall and vault the ceiling with skylights.

When Jim opened up his kitchen by taking down the wall between the kitchen and living room, it completely transformed the space. Instead of three separate boxy rooms, he created one massive open-concept area that actually matches how people live today.

What you need to know:

• Requires an engineered beam designed by an architect to span the entire space
• Not a DIY project (kind of important if you want your house to stay standing🫣)
• Cost: $15,000-$40,000 depending on span length and structural requirements
• Timeline: 2-4 weeks for design + permitting, 3-6 weeks for construction
• ROI: up to 65-80% at resale

Add skylights to that vaulted ceiling and you’ve solved the biggest complaint about split-levels, the lack of natural light!

See this full kitchen remodel to get all the details.

The transformation: You go from “why are there so many tiny rooms?” to “oh, this is actually livable.”

(Side note: If you’re interested in opening up your ceiling like this one, read our post on how to add shiplap to a vaulted ceiling.)

Split Level Basement Ideas: Creating a Master Suite That Adds Square Footage

Most split-levels have three bedrooms and one bathroom on the upper level. That’s not ideal for today’s buyers who expect a master suite with separation from other bedrooms.

The strategic move: Finish the lower level and create a master suite down there.

Jim turned the basement into a full master suite with:

• Large bedroom with stone fireplace
• Full bathroom with corner shower (and yes, a beer fridge in the shower wall😆)
• Cedar walk-in closet
• Office/flexible space across the hall

Why this works: You’re solving multiple problems at once. Split-levels typically lack a true master suite. Finishing the basement adds significant livable square footage. And creating that separation between the master and other bedrooms? Perfect for multigenerational families.

Cost breakdown:

• Basic basement finish: $40,000-$65,000
• Full master suite with bathroom: $40,000-$60,000
• Timeline: 8-12 weeks
• ROI: 60-75% at resale

Design tip: Use French doors instead of solid doors throughout the basement. It keeps the space from feeling like a dungeon.

The below-grade reality: Yes, appraisers will value this space at roughly 50% of above-grade, BUT finishing it properly makes your home competitive with others that have master suites.

Updating the main floor bathroom in a split is also money well spent! Check out this split level 5×8 bathroom and how we remodeled it without changing the layout!

Check out how we refinished the basement in our other split-level home we sold.

Updated Split Level Exterior: Curb Appeal and Entryway Ideas That Make Buyers Stop

Split-level entryways are notoriously awkward, you walk in the front door and immediately face two short staircases going in opposite directions. It feels choppy and dated.

The entryway fix:

• Open up the staircase with modern metal balusters (replace dated wood)
• Paint everything fresh white or a modern neutral
• Add recessed lighting (these spaces are usually too dark)

See this full entryway makeover and front door makeover to get all the details.

Cost: $3,000-$8,000 for staircase updates Timeline: 1-2 weeks ROI: 50-60%, but massive perception shift

Split Level Exterior Updates

Split-levels have a curb appeal problem that starts before buyers even walk through the door.

What actually works:

• Update siding (Jim’s was yellow with black shutters—clean and modern)
• Add or update landscaping (heavy on greenery to soften lines)
• Replace old garage doors
• Update exterior lighting

Cost: $10,000-$55,000 depending on scope Timeline: 2-4 weeks ROI: 75-90% for siding/exterior updates

Jim ended up buying the neighbor’s split-level house, so be sure to check out the split-level house exterior makeover on that home. It’s dramatic!

Split Level Addition Ideas: When Adding Space Makes Financial Sense

Jim added a sunroom and bar space by enclosing an existing screened porch and opening up the third bedroom above it.

When additions make sense:

• You’re planning to stay long-term AND enjoy the space yourself
• Your lot has room to expand
• The local market supports the investment

Split-level addition costs:

• Sunroom/enclosed porch: $55,000-$80,000
• Full room addition: $80,000-$150,000
• Timeline: 3-6 months
• ROI: 50-70% (lifestyle choice more than pure financial investment)

Jim’s additions worked because he lived there and enjoyed them for years before selling. They were huge differentiators, but he didn’t do them purely for resale value.

Want to see all of these updates in action? Check out the complete before and after of Jim’s split-level that sold for $80K over asking.

Renovated Split Level Homes: What NOT to Spend Money On (ROI Reality Check)

Let’s be honest about what doesn’t move the needle:

High-end appliances – You won’t get ROI on a split-level. Go mid-range.

Extensive landscaping – Unless you’ve got foundation issues, basic clean-up is enough.

Over-improving for your neighborhood – If comparable split-levels sell for $400K, don’t sink $100K into updates expecting $550K.

Trendy finishes – Buyers either love them or hate them. Stick with timeless choices.

If You Only Have $20K to Spend, Do This:

Priority 1: Kitchen wall removal (if structural allows) – $15,000-$25,000 Gets you the biggest perception shift.

Priority 2 (if kitchen is already open): Entryway update + fresh paint – $5,000-$8,000 Makes the house feel updated without major construction.

Priority 3 (if you have $100K+ total): Kitchen + entryway + exterior updates + basement master suite makes your split-level competitive with move-in-ready homes in any market.

Who’s Actually Buying Split Level Homes Right Now?

Not every buyer hates split-levels. Some are actively looking for them.

Multigenerational families – The layout naturally separates generations. Parents upstairs, grandparents or adult kids in the finished basement.

Remote workers – That lower level bedroom? Perfect home office with actual separation from the rest of the house.

First-time buyers on a budget – Split-levels are more affordable per square foot. The below-grade appraisal reality means you get more livable space for your money.

Investors – Lower purchase price, same rental rates as comparable square footage in other styles.

The problem is these buyers can’t find updated split-levels. When you’ve already done the updates? You’ve eliminated their biggest concern and removed your competition!

The Accessibility Reality

Let’s address the elephant in the room: stairs.

Split-levels have multiple short staircases, and that’s a legitimate concern for buyers with mobility issues or families thinking about aging in place.

The reality: This limits your buyer pool. But modern buyers with these concerns aren’t looking at split-levels in the first place, they’re looking at ranches. You’re not losing buyers you never had.

Don’t apologize for the layout. Work with it!

Jim eventually moved out of that split-level to live with me (best decision he ever made, obviously😉). When I asked if he was sad about leaving, he said, “Yes, definitely sad, but time has run its course here and there isn’t anything else I can do to this place. I’m ready for a new challenge.”

He’d maxed out the potential. And buyers recognized it, hence the $80K over asking! Be sure to download my 25 Split Level Renovation Checklist for 2025 for even more details.