4 min readPictured Above: A whimsical bathtub alcove in a Chicago home designed by Jess Milburn of North & Madison.
Once upon a time, you could count on a real estate market where you got out what you put in. You’d buy a house you believed would sell well one day, pocket the profit, and move on to your next venture. That’s a simplified way of describing “return on investment,” or ROI—the profitability of a real estate purchase and a key factor in guiding financial decisions.
But increasingly, homebuyers are looking for something beyond financial return. Enter “Emotional ROI.”
“I always tell buyers that if they don't feel some type of emotional excitement when they spend time in a house, then they shouldn't buy that house,” says Kimberly Schmidt, San Diego real estate expert and team lead of Kimberly Schmidt and Associates at Compass. “We are not robots—we are deeply emotional creatures, and our homes are deeply emotional places.”
This emotional dimension of homebuying often shows up in properties with character and unique design elements that “might help capture a different set of buyers than the traditional modern strategies in home selling,” as Maureen McDermut, realtor at Sotheby's International-Montecito, puts it.
So, what exactly is Emotional ROI, and how does it relate to homes with character? Ahead, experts break down what to know.
What Is “Emotional ROI”?
McDermut defines Emotional ROI as “the specific intangible feelings your home provides potential buyers. For example, you may have exposed wood beams in your living room that remind a buyer of their grandmother's home, or you may have an updated security system that provides a sense of security.”
Schmidt calls it “the unique pleasure one gets from a place or thing that goes beyond its practical or financial value.”
“It's the reason we gasp and say, ‘Oooh,’ when we see something beautiful or pleasing,” she reflects. “It's that immeasurable emotional appeal of something that brings you a sense of joy and appreciation.”
So, instead of profit, your ROI just might be the emotions and joy that you may experience in the home of your dreams, and this may matter more to you than the bottom line.
Emotional ROI and Homes With Character
What exactly constitutes “character” in a home? As Schmidt explains, today’s character-driven homebuyers are often looking for things like well-preserved vintage tile in the kitchen and baths, original hardwood flooring, detailed moldings and trim, antique glass, wood-beamed ceilings, and charming fireplaces.
And it’s not all vintage. Homebuyers are also on the lookout for built-ins, niches, alcoves, and coved ceilings in modern-day homes, as Schmidt adds.
McDermut sees a desire to return to old-fashioned ways of doing things. For instance, some buyers are looking for wood-burning fireplaces rather than gas-powered ones. Some are looking for homes with boilers as opposed to a forced air HVAC system, as they tend to be more energy-efficient.
“Homes with character are usually special—they are unique in some way, and they often have that je ne sais quoi that makes your heart speed up,” Schmidt says. “I tell my buyers that that is the feeling you want to have when you are shopping for a house—that giddy, excited feeling you get when you've made a perfect match.”
Why Buyers Are Paying More for Character-Filled Homes
Why is character resonating so much with buyers in 2026? It could be the fatigue of seeing the same “safe” aesthetic over and over again.
“Today's real estate landscape has gotten pretty boring, quite frankly,” Schmidt says. “Buyers are simply tired of seeing the same ubiquitous colors and finishes. Imagine seeing one gray box after another, and then for the last house on your tour, you walk into a charming, warm, wood-filled space. Suddenly, you haven't just walked into a house—you have walked into a home.”
Additionally, McDermut has heard more and more criticisms of newly built homes lacking any real craftsmanship.
“We have large communities built with cookie-cutter floor plans and designs, and many homebuyers are not looking for that,” she says.
What Sellers Should Know
If you’re in the market for a home and these character-filled details make your heart flutter, you’re likely drawn to the idea of Emotional ROI. But how does this concept apply if you’re selling your home and hoping to attract buyers like that—especially if your property is more modern than historic?
According to Schmidt, it all comes down to the details. Neutral hues can create a “boring” look, and fixtures sourced from the same big-box store can feel repetitive. Instead, she recommends leaning into elements that feel distinctive and refined, like wood floors or charming, thoughtfully chosen fixtures.
McDermut agrees, suggesting paint colors inspired by past eras—think mint green or pastel yellow—over standard neutrals. She also recommends incorporating antique furniture when staging to help set the tone. Visually striking kitchen backsplashes or accent walls, she adds, can bring a strong sense of character to a space.
