I can’t tell you how many times a client has sat across from me and asked, “Is it worth it to redo the kitchen before we sell?” or “Should we really spend that much on a bathroom?”
I get it! There’s so much advice out there, and a lot of it contradicts itself. You’ll hear things like “only spend 10% of your home’s value on a kitchen remodel” tossed around like it’s an ironclad rule, and I always want to ask: says who, exactly?
So I decided to dig into the actual data behind renovation returns. I looked into the projects I get asked about most: kitchens, bathrooms, decks, and flooring. Keep reading to learn what I found out, along with my own take as someone who’s walked plenty of buyers and sellers through this exact decision.
What “ROI” Really Means When You Renovate
Let’s start here, because I think this is where a lot of confusion happens. When you see a stat like “70% ROI” on a renovation project, that doesn’t mean you’ll profit. It means if you spend $20,000 on that project, you can expect to get back roughly $14,000 of it when you sell. You’re not necessarily making money; you’re recouping a portion of what you spent.
Here’s my honest take, the same thing I tell my clients all the time: when you spend money on a renovation, are you going to recoup all of it? Probably not, in most cases. But you will get back a percentage, and that percentage swings a lot depending on the project.
Almost nothing pays for itself dollar-for-dollar. The projects that come closest tend to be the smaller, more universally appealing upgrades. The big, personalized overhauls that feel amazing to live in don’t always translate the same way to a buyer walking through your door.
I always encourage people to keep this in perspective. A smart renovation isn’t about “breaking even” on paper. It’s about improving your life in the home while making a choice that won’t come back to bite you financially, especially if you already know this isn’t the house you’ll retire in.
Kitchens & Bathrooms: The Sweet Spot Is “Mid-Range”
Kitchens and bathrooms are where I see the most renovation dollars go, and they’re also exactly where that “don’t overspend” advice tends to hold up.
To help me through this section, I found Zonda’s 2025 Cost vs. Value Report that pulls data from real estate pros and remodeling costs across the country. Interestingly, a minor kitchen update that includes things like new cabinet fronts, updated hardware, fresh countertops, or newer appliances, is the only interior upgrade in the top 5.
I’ve seen this play out firsthand: a full custom kitchen with a layout change and top-tier appliances might cost two or three times more than a moderate refresh, but it often recoups less than 40% of that cost at resale.
Bathrooms follow the same pattern. A lower-cost bathroom remodel tends to recoup a noticeably higher share of its cost than an upscale one. Buyers want clean, updated, modern bathrooms, but they’re not necessarily willing to pay extra for heated floors or designer fixtures. Every dollar you spend past a certain point is buying you luxury, not resale value. For some people, luxury is important. For others, they can do without.
To be clear, I’m not telling anyone to skip the kitchen or bathroom remodel entirely. I’m saying a thoughtful, moderate update is often the smarter money move than a full gut renovation, unless that luxurious spa bathroom is important to you and you aren’t planning on selling anytime soon.
Decks and Hardwood Floors: Small Projects, Big Returns
I mentioned above that a moderate kitchen update was the only interior project. Which is great news, because you can really stretch your money on exterior projects.
Outdoor living space has become such a priority for buyers, and based on NARI’s research on exterior upgrades, a wood deck addition is one of the most consistently strong performers out there. It even often outperforms composite decking, which costs more up front without necessarily returning proportionally more. If you’re on a budget but want outdoor entertaining space, a solid wood deck is one of the safer bets you can make.
Flooring is another one I get asked about constantly: do wood floors actually add value?
The short answer? Yes.
The National Association of REALTORS® Remodeling Impact Report shows hardwood flooring is one of the rare upgrades that can return more than it costs, and REALTORS® consistently report that homes with hardwood floors sell faster and often for more than comparable homes without them. Buyers see hardwood and immediately think quality and low-maintenance, and that perception is worth something.
It’s Your Home, Too: Renovating for You vs. for Resale
Here’s the part I really want to drive home: all of this data is helpful, but it shouldn’t be the only voice in the room when you’re making these decisions. This is your home. You’re the one living in it every day, not some hypothetical future buyer. If that bold backsplash or spa-like bathroom is going to make your daily life better, that has real value too, even if it doesn’t show up neatly on a spreadsheet.
That said, I always tell clients: being informed helps you spend wisely, especially if you already know this isn’t your forever home. If you’re planning to sell in the next few years, I’d lean toward the projects with proven returns, like a moderate kitchen refresh, a wood deck, hardwood floors, or vinyl siding replacement. But if you’re staying put for the long haul, you’ve got more freedom to prioritize what makes you happy. A project might have a lower ROI on paper but will significantly improve your quality of life.
Ready to Renovate With Confidence?
Whether you’re getting your home ready to list or investing in upgrades you’ll enjoy for years to come, I’d love to help you think it through. Reach out to me before you start your next project. I can help you figure out which upgrades make the most sense for your home, your neighborhood, and your goals here in Southeast Wisconsin. I might even be able to connect you with a local contractor who can help make your upgrade dreams come true!
