Where to Spend Your Remodeling Money for Maximum ROI

Where to spend the money for maximum ROI.

When it comes to home remodeling, not every dollar spent translates into a dollar gained. If you want to maximize the return on investment (ROI), you need to be strategic about where you put your money. As a real estate veteran with decades of experience, I’ve seen firsthand which upgrades boost home value and which ones drain your wallet.

The key is to focus on high-impact projects—updates that improve both aesthetics and functionality without breaking the bank. Here’s where you should prioritize your remodeling dollars:

1. Replacements: Small Changes, Big Returns

   
   

The easiest way to increase your home's value is through simple replacement projects. These are upgrades that don’t require a major renovation but make a significant impact.

According to Remodeling Magazine, the top four home improvement projects with the best ROI include:

✅ Garage door replacement: 98.3% ROI

✅ Manufactured stone veneer: 97.1% ROI

✅ Wood deck addition: 82.8% ROI

✅ Minor kitchen remodel: 81.1% ROI

Why are these so valuable? Curb appeal. The exterior of your home is the first thing buyers see, and a fresh, well-maintained look can immediately set a positive tone.

Other worthwhile replacements include:

🔹 Windows: Replacing old windows with vinyl or wood can bring back about 71% of your investment.

🔹 Roof: While a brand-new roof won’t necessarily increase your home’s appraised value, it does make it more sellable.

2. Kitchen & Bathroom Remodels: Worth the Investment?

The kitchen is often referred to as the heart of the home, and for good reason. A well-designed, modern kitchen can sway buyers and boost your sale price. However, the key is moderation.

A minor kitchen remodel (think new countertops, refaced cabinets, and updated appliances) brings in around 81% ROI. On the other hand, a major kitchen remodel with high-end custom finishes may only return 50-60% of what you put in.

Bathroom remodels follow a similar pattern. A mid-range renovation—new tiles, updated vanity, and fresh fixtures—offers a 62% ROI. But a luxury bathroom overhaul often doesn’t justify the cost unless you’re in a high-end market.

3. Home Additions: Do They Pay Off?

Adding extra living space is appealing, but not all additions are worth the price. Consider the following:

✔️ Deck Addition: A wood deck yields about 70% ROI, making it one of the best home addition investments.

✔️ Bathroom Addition: If your home only has one bathroom, adding another can be a smart move, returning around 62%.

✔️ Master Suite Addition: While a nice luxury, the average return is just 52%, making it a low-priority project.

4. Don't Overlook Essential Repairs

Buyers may love a stunning kitchen, but they’ll walk away if the home has an old furnace, leaky roof, or outdated plumbing. Essential home systems should be in top shape before tackling cosmetic upgrades.

✔️ HVAC System: An aging furnace or AC unit can kill a sale. New energy-efficient models are attractive to buyers and often come with tax credits.

✔️ Electrical & Plumbing: Ensure your wiring and pipes are in good condition to avoid red flags during inspections.

✔️ Flooring & Carpets: Stained or damaged flooring is a deal-breaker. Replacing old carpets or refinishing hardwood floors can go a long way.

Final Thoughts

Before diving into a renovation project, ask yourself: Am I doing this for myself or for resale value? If you plan to stay for many years, invest in what makes you happy. But if selling is on the horizon, focus on cost-effective upgrades that increase your home’s value.

Need expert advice on which renovations make sense for your home? Let’s connect—I’ll help you make the right decisions to maximize your investment.

📩 Contact me at miguel@zoldly.com or schedule a call today.

— Miguel Dominguez, RCS-D, Real Estate Broker | Creator of Zoldly | US Navy Veteran | 29 Years of Experience