Various strategies can help investors bolster their returns on real estate investments. [MetroCreative]
Real estate has long been considered a good investment. Whether people are buying a home they intend to live in or purchasing investment properties they hope to flip or rent out, real estate tends to provide a strong return on investment.
Maximizing the investment value of a property is wise regardless of how buyers intend to use it. With that in mind, buyers can consider these strategies to make the most of a real estate investment.
• Renovate with ROI in mind. Though no room of a home in need of work should be ignored, various studies have identified the rooms buyers emphasize most when looking for a new home. Kitchens and primary suites tend to make the most lasting impressions on home buyers, and that can offer a strong return on investment (ROI). And the good news for homeowners hoping to sell a property they currently own is that minor kitchen remodels, which require a smaller financial investment than major overhauls, offer stronger returns. According to the Cost vs. Value Report 2025 from the Journal of Light Construction, a minor kitchen remodel offers an average return of 113% compared to a 36% average return for a major upscale remodel.
• Prioritize location. Real estate investors who aren’t looking to sell but buy can maximize their investment by prioritizing location as they search for properties. Though the real estate market is ever-changing, the importance of location remains a constant. Investopedia notes that a “good” location for prospective buyers typically is near access to transportation (be it public transportation or highways that can help cut down on commute times), well-regarded schools, and community involvement. While the importance of location is a constant, Investopedia notes that a given neighborhood’s reputation can go from “good” to “bad” or vice versa. Identifying an emerging “good” neighborhood can be a tall order, but prospective real estate investors are urged to consider a range of variables about each location in an effort to maximize their investments. Recent investment in local infrastructure and a growth in local employment opportunities are two variables that can help a given area quickly transform into a place people want to live.
• Sell at the right time. When selling a home with the intent of maximizing a real estate investment, it’s important that owners recognize certain times of year are better for sellers than others. A 2024 report from the real estate curator ATTOM indicated that listing a property in May, February or April can yield the best returns for sellers. May is a particularly good time to sell, as the ATTOM analysis of 59 million home sales between 2011 and 2023 found that homes sold in May sold for 13.1% above market value, which was the highest of any month.