- From what I've seen, it really depends on the type of upgrade and your local market.
- Kitchens and bathrooms usually give you the best return, but even then, you're rarely getting 100% back—more like 60-80%.
- Personal experience: redid our master bath a few years ago. Definitely made life nicer, but when refinancing, the appraisal bump wasn't huge...maybe half of what we spent.
- Bottom line: upgrades are mostly about comfort unless you're flipping or selling soon.
"Bottom line: upgrades are mostly about comfort unless you're flipping or selling soon."
Yeah, totally agree with this. I've seen plenty of clients who went all-in on high-end kitchen remodels expecting a big jump in home value, only to be disappointed when the appraisal came back. It's true that kitchens and bathrooms usually offer the best returns, but even then, it's rarely dollar-for-dollar.
One thing I've noticed is that the type of finishes and materials you choose can make a huge difference—not just in cost, but in how appealing they are to potential buyers down the road. For instance, super trendy tile patterns or bold color choices might look amazing now, but they can date your space quickly. On the other hand, classic materials like subway tile, quartz countertops, or neutral cabinetry tend to hold their appeal longer and can help maximize return.
Also worth mentioning—sometimes smaller upgrades can actually give you more bang for your buck than a full gut-job. Updating hardware, lighting fixtures, faucets, or even just repainting cabinets can freshen up a space dramatically without draining your equity too much. I've had clients surprised by how much better their kitchen or bath felt after relatively minor tweaks.
But yeah...ultimately, tapping into home equity for renovations is more about personal enjoyment than investment returns for most homeowners. If you're planning on staying put for several years and it'll genuinely improve your quality of life, it can definitely be worth it—even if you don't recoup every penny later on. Just keep expectations realistic and try not to over-improve beyond what's typical in your neighborhood.
That's a solid take. I've seen homeowners pour serious cash into upgrades thinking it'll boost their home's value big-time, only to realize later it didn't quite pan out. Had one client who splurged on a super trendy bathroom—think bold wallpaper and gold fixtures everywhere. Looked amazing at first, but a couple years later, buyers were like "uhhh, no thanks." Sometimes subtle, timeless updates really are the smarter move...and easier on the wallet too.
"Had one client who splurged on a super trendy bathroom—think bold wallpaper and gold fixtures everywhere."
Haha, sounds familiar. When we first bought our place, I got sucked into the Pinterest rabbit hole and almost went full HGTV mode on our kitchen—think bright teal cabinets and open shelving everywhere. Luckily, someone talked sense into me. Ended up going neutral and classic, and I'm glad I did. Trends fade fast, and tapping equity for something that'll look dated in five years...probably not the best call.
Haha, I feel this. We tapped into our equity a few years back to upgrade our windows and insulation—nothing flashy, but man, the energy savings have been worth it. Sometimes boring choices pay off more than trendy ones...
