Renovate or Move? Before You Put $100,000 Into Your Metro Detroit Home, Run the Numbers

If you own a nice home in Metro Detroit but you're starting to outgrow it, you may be facing an expensive question:

Do we renovate this house, or move into the house we actually want?

For homeowners considering a major kitchen, primary suite, finished basement, addition or substantial outdoor project, that decision can easily involve $75,000, $100,000 or much more.

Before spending the money, I think there's another question worth asking:

Are you improving the right house?

A Renovation Doesn't Automatically Add What You Spend

The latest Detroit specific Cost vs. Value data provides a good example.

A midrange major kitchen remodel in the Detroit market had an estimated cost of $83,113, but an estimated resale value increase of about $40,038, or 48.2% of the project cost.

An upscale major kitchen remodel averaged approximately $160,333, with an estimated $55,119 added at resale, about 34.4% of the cost.

A midrange primary suite addition was even larger, approximately $160,572, with an estimated resale value increase of $54,514.

An upscale primary suite addition approached $329,084, while its estimated resale contribution was approximately $65,028.

That doesn't make these projects bad investments.

Your home is also where you live.

In fact, the National Association of Realtors' 2025 Remodeling Impact Report found that a kitchen upgrade and adding a primary bedroom suite both received perfect 10 out of 10 Joy Scores from homeowners.

The important distinction is between improving your lifestyle and expecting every renovation dollar back at resale.

Sometimes Smaller Improvements Make More Financial Sense

Interestingly, the Metro Detroit data shows a very different result for some smaller projects.

A midrange minor kitchen remodel averaged about $27,005 and had an estimated resale value of $27,318.

That's approximately 101% of the project cost in the report.

That's why spending more doesn't necessarily mean adding more value.

Before You Renovate, Understand What Your Home Could Be Worth

This is where the decision becomes very local.

If you own a $500,000 home and are considering putting another $100,000 into it, first find out what the best homes in your neighborhood are actually selling for.

I wrote about why Southeast Michigan home values have remained resilient in Why Home Prices Haven't Dropped And Probably Won't.

But a strong overall housing market doesn't mean every renovation makes financial sense.

Your neighborhood, lot, square footage, layout, condition and the recent comparable sales around you can create a practical ceiling on what buyers are willing to pay.

Then ask another question:

What could that same $100,000, combined with the equity already in your home, do if you moved instead?

Maybe renovating is absolutely the right decision.

Maybe moving from a $500,000 home into a $700,000 home gets you the kitchen, primary suite, garage, lot and location you want without managing a major construction project.

And sometimes a smaller renovation gives you everything you actually need.

My Advice Before Spending the Money

Before starting a major renovation, I would look at three numbers:

What is your home worth today?

What would it realistically be worth after the renovation?

What could you buy if you sold instead?

As both a real estate agent and licensed builder, this is one of the conversations I particularly enjoy because the answer isn't automatically "sell" or "remodel."

It's about figuring out which option makes the most sense for the house, the neighborhood, your money and how you actually want to live.

If you're considering putting serious money into your Metro Detroit home, I'd be happy to help you run those numbers before you make the decision.

Caleb Bonderenka
SoldByCaleb.com
734 945 5948

Sources: Journal of Light Construction, 2025 Cost vs. Value Report, Detroit, Michigan and National Association of Realtors, 2025 Remodeling Impact Report

Remodeling costs and resale values are estimates and can vary significantly by property, location, materials, contractor, project scope and market conditions.