Selling a home is a huge decision, and it often comes with a major dilemma: Should you invest in renovations before putting it on the market? On one hand, you want to get the most value possible, but on the other hand, the idea of spending time and money on upgrades might feel risky. What if it doesn’t pay off?
At JSB Home Solutions, we understand the importance of making informed decisions when selling a home. That’s why we’ve teamed up with local Columbus area realtor, Kendra Carter of The Carter Group with Keller Williams Realty, to bring you a well-rounded perspective. With our 46 years of expertise in home remodeling and Kendra’s deep knowledge of the real estate market, we’ve got both sides covered. We understand the hesitation homeowners feel—why put money into a home you’re about to leave? Together, we’re here to offer the insights you need to make the best decision for your situation.
In this article, you’ll learn the pros and cons of renovating before selling, helping you make an informed decision. By the end, you’ll know which renovations are worth the investment and whether sprucing up your home is the right move for your situation.
Table of Contents:
- Advantages of Remodeling Before Selling Your Home
- Disadvantages of Remodeling Before Selling Your Home
- What Updates Should I Do Before Selling My House?
- Factors to Consider When Deciding to Remodel Before Selling Your Home
- Alternatives to Remodeling Before Selling Your Home
Advantages of Remodeling Before Selling Your Home
Remodeling Before Selling Can Increase Property Value
Let’s start with the most obvious benefit: a higher sale price. Renovating key areas like the kitchen or bathroom can add significant value to your home. Buyers love seeing fresh, modern updates—especially in the kitchen, which many consider the heart of the home. Even simple improvements, like upgrading countertops or replacing old fixtures, can make your home more appealing and justify a higher asking price.
Remodeling Before Selling Can Attract More Buyers
First impressions matter, and buyers are often drawn to homes that look move-in ready. Renovations can make your home stand out in a competitive market. If you’ve got outdated flooring or tired, worn-out cabinets, making a few upgrades can give your home a fresh look that attracts a broader range of buyers.
Remodeling Before Selling Can Lead to a Faster Sale
Homes that have already had key updates done tend to sell faster. Buyers appreciate not having to do the work themselves and are willing to pay more for a home that’s ready to live in from day one. If your goal is to sell quickly, renovations might help move the process along.
"Average days-on-market is a big psychological factor for buyer perception in home sales. Homes needing larger scale remodels tend to sit longer, and have more price reductions." - Kendra
Disadvantages of Remodeling Before Selling Your Home
Remodeling Before Selling Can Have High Upfront Costs
Renovations don’t come cheap, and even small updates can add up quickly. If you’re on a tight budget or unsure about how much extra value those renovations will bring, it might be better to hold off. There’s no guarantee that the money you spend will translate into a higher sale price, so it’s important to weigh the costs carefully. To help you make an informed decision, experienced realtors like Kendra can do the following:
"We will run a Seller Net Sheet with our title company to accurately project home sale profit. We can then factor in renovations and how that can increase profit, and if it makes sense for current cash on hand. More importantly, some renovation companies offer financing for remodeling. That could be a great option as well." - Kendra
Remodeling Before Selling Has Risk of Over-Personalization
What if the updates you choose don’t appeal to potential buyers? Over-customizing your home to your personal taste could limit your pool of buyers. While you may love that bold, modern design, others may find it off-putting. Sticking to neutral, broadly appealing updates is key, but there’s still a risk that the renovation won’t resonate with everyone.
"Over improving is a thing, as well as poor selection with finishes. We have seen bold colors, finishes and fixtures not resonate with the market in many cases." - Kendra
Remodeling Before Selling Can Be a Time-Consuming Process
Even a small project can turn into a lengthy process with delays and unexpected issues. If you’re in a hurry to sell, taking on a renovation might push back your timeline more than you’d like. Time is money when selling a home, and if the renovation drags on, you could lose potential buyers.
"In some cases, you could receive a higher net profit selling as is. Rushing a renovation could also lead to messy DIY fixes and that will only lead to lessening value, rather than increasing." - Kendra
What Updates Should I Do Before Selling My House?
Before diving into renovations, it’s important to focus on projects that will give you the best return on investment (ROI). Not all upgrades will boost your home’s value, so knowing which renovations typically pay off can help you make smarter decisions. Let’s take a closer look at which projects are worth the investment and which ones may not be.
High ROI Renovations
If you do decide to renovate, focus on these types of projects to boost the value of your home. These types of projects will let you set a higher asking price:
- Kitchen Remodels: Buyers love an updated kitchen, especially with modern finishes like quartz countertops and new appliances.
- Bathroom Upgrades: Updating an outdated bathroom can make a big difference in your home’s appeal.
- Curb Appeal Improvements: Small updates like fresh landscaping, a new front door, or a modern exterior paint job can create a great first impression.
Low ROI or Risky Renovations
Some renovations aren’t worth the investment because they cost quite a bit to accomplish but don’t boost the overall value of your home very much:
- Luxury Additions: Installing a pool or a high-end appliance suite may sound nice, but they often don’t add enough value to justify the cost.
- Overly Trendy Designs: Opting for trendy, niche designs that may not appeal to the general buyer pool could turn away potential buyers
Factors to Consider When Deciding to Remodel Before Selling Your Home
Current Market Conditions
Before deciding whether to renovate, it’s crucial to understand the current state of the real estate market. A seller’s market happens when there are more buyers than available homes, driving up demand. In this scenario, buyers are often willing to overlook small cosmetic issues or even larger repairs just to secure a home. In a hot seller’s market, you might not need to invest in major renovations because the high demand allows you to sell at a favorable price without extensive updates.
On the other hand, a buyer’s market occurs when there are more homes for sale than buyers, which gives buyers the upper hand. They have more options to choose from, so they’re likely to be pickier and look for homes that are move-in ready. In a buyer’s market, making key renovations—like updating kitchens, bathrooms, or enhancing curb appeal—can give your home an edge over the competition. In this situation, renovations might help your home stand out and attract buyers who aren’t looking to take on projects after purchasing.
By understanding whether you’re in a buyer’s or seller’s market, you can better decide whether renovations are a smart investment before selling.
Condition of Your Home
The current state of your home plays a major role in whether renovations are necessary to attract buyers before selling. Some homes might benefit from a few key updates, while others could appeal to buyers as-is. Let’s look at a few examples:
Conditions That Could Benefit from Renovations:
-
Outdated Kitchens or Bathrooms: If your kitchen or bathrooms are noticeably outdated—think old appliances, worn countertops, or dated fixtures—making some upgrades could significantly improve your home’s appeal. These rooms are often major selling points for buyers, and even modest renovations, like new countertops or fresh paint, can make a big difference.
- Visible Wear and Tear: If your home has visible signs of wear, such as chipped paint, scratched floors, or aging fixtures, a few simple fixes can go a long way. Freshening up these areas can give buyers the impression that the home has been well-maintained, which is crucial when they’re deciding whether to make an offer.
Conditions That Might Not Benefit from Renovations:
Already Modern or Recently Updated: If you’ve recently renovated key areas like the kitchen, bathroom, or living spaces, further renovations may not be necessary. A home that’s already updated and in good condition typically doesn’t require additional improvements to attract buyers.- Homes with Structural or Major System Issues: If your home has more serious issues like a damaged roof, foundation problems, or outdated plumbing and electrical systems, it may not be worth investing in cosmetic renovations. In this case, buyers are likely to be more concerned with fixing those underlying issues than with minor upgrades. Offering a repair credit or selling as-is might be a better route, saving you the time and expense of tackling major repairs yourself.
By assessing the overall condition of your home, you can better determine whether investing in renovations will boost its value and appeal to buyers, or if it’s more practical to sell as-is.
Your Home Renovation Budget and Timeline
How much are you willing to spend, and how quickly do you need to sell? Your financial situation and timing will heavily influence whether renovations make sense. If you’re working on a tight budget or timeline, it may be better to skip the renovation and focus on pricing your home competitively.
Alternatives to Remodeling Before Selling Your Home
Selling As-Is
If renovations aren’t in the cards, you can always sell your home as-is. Some buyers, particularly investors, are looking for homes that they can fix up themselves. Selling as-is can save you time and money, though you may need to adjust your asking price accordingly.
"We will put both scenarios on paper to help you decide what path is best. Last year, we helped a homeowner net $100,000 over the projected as-is sale price by doing a $22,000 remodel." - Kendra
Offering a Repair Credit
Another option is to offer buyers credit toward repairs or renovations. This way, you avoid the upfront cost and hassle of renovating but still provide buyers with an incentive to take on the project themselves.
"For this option, we want to ensure the buyer's financing will allow this type of credit. In some cases, there are seller credit limits." - Kendra
So, Should You Remodel Before Selling Your Home?
So, should you renovate before selling your home? It ultimately depends on your budget, timeline, and the current market conditions. If you’re looking to maximize value and attract more buyers, certain renovations can definitely help—but they come with risks, including upfront costs and potential delays.
You should consider strategically remodeling your home before selling if:
- Your kitchen or bathrooms are outdated.
- Your home shows signs of wear and tear.
- You’re in a buyer’s market, where homes are plentiful and competition is fierce.
Remodeling before selling your home might not pay off if:
- Your home is already in good condition with recent updates.
- You’re in a seller’s market, where buyers are willing to overlook minor issues.
- Your home has structural or major system issues, like a damaged roof or outdated plumbing. Selling as-is or offering repair credit could be a better alternative.
Before making any decisions, consult with a real estate expert or remodeling professional. They can help you assess the current market, the condition of your home, and which improvements—if any—make sense. With the right guidance, you can confidently choose the best approach for selling your home, whether that means a full renovation or selling as-is.
Topics:
