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Should You Renovate Your Home Before Selling It?

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always plan before you renovate your home




Selling a home can be a stressful and challenging process, but making the decision to renovate your home before putting it on the market can pay off in the long run. Not only can it increase the value of your home, resulting in a higher selling price, but it can also make it more attractive to potential buyers. However, it’s important to carefully consider the cost of the renovations versus the potential Return on Investment (ROI).


If you’re wondering whether it is worth renovating a house before selling it, in this article, we will explain how you can maximize your home’s value with renovations. We will also mention the pros and cons of renovating your home and give you some cost-effective renovation ideas that you can use.


nice renovation that can increase your home value


Property Condition


The condition of a home is one of the most important factors to consider when deciding whether to renovate before selling. This is because the condition of a home can significantly impact its value and appeal to potential buyers.


If your home is in poor condition, it will probably not attract a large number of homebuyers. Most of the interested buyers would be local home flippers or ibuyers and you will probably get offers that are significantly lower than the average price in your area for comparable homes. On the other hand, if your home is in good condition, it is more likely to sell quickly and at a higher price.


When assessing the condition of a home, it’s essential to consider both the structural and cosmetic aspects of the property. Structural issues, such as foundation problems or termite damage, can be costly to repair and can greatly impact the safety and livability of the home. These kinds of issues usually negatively affect home value the most. Therefore, repairs, including structural or other serious issues on your home before you sell it, usually have the highest ROI.


It is very important to assess the ROI on each of the issues explained above before you start repairs. Always ask for a few different estimates from a few contractors to assess the cost of your repairs. After that, consult with a local real estate agent on how much would the value of your home increase. Keep in mind that to gain positive ROI, the increase in value must be larger compared to the cost of repairs.


These types of issues can often be addressed with relatively low-cost renovations or updates, such as painting, flooring, or updating the kitchen or bathroom.


Fixing numerous cosmetic issues in your outdated home and bringing it to a condition that is better than the average condition homes in your neighborhood, can also bring significant home value increase and positive ROI.


The same rule applies here as well – gather estimates for your home improvement project and compare that cost to the amount for which your home will appreciate as a result of the home improvement work.


Home renovation projects can be a great way to increase the value of a home and make it more appealing to potential buyers. However, it’s important to consider your home’s condition before embarking on any renovation project.


By assessing your home’s condition, you can make an informed decision about whether to renovate or not.


The Renovation Portal is an excellent place where you can plan your renovation. The advanced algorithm deployed here can help you calculate all important aspects of your renovation by automatically calculating ROIs for different items and providing money-saving tips.


If you want to learn more details about how to make a smart renovation, read our article on the topic:


How to Do a Smart Renovation


illustration showing that renovating your home is worth before selling as 80% of Americans prefer to buy move-in ready homes
(Designed by: Homescala | Source: ColdwellBanker)


Maximize Your Home’s Value with Renovations


Your home improvement project can address a variety of items that may include large structural issues and smaller cosmetic issues.  By now, you already know that not all renovation items are going to come with great ROI. So, you may ask yourself what renovations are worth doing before selling. Here are some tips:


Focus on high-value areas

Kitchens and bathrooms are two of the most important areas in a home. Updating them can have a significant impact on the value of your home. If you decide to renovate your home, consider updating your kitchen and bathroom fixtures. Also, consider replacing appliances, and countertops in order to modernize the space.


Make energy-efficient upgrades

Installing energy-efficient appliances, windows, and insulation can help lower utility bills and make your home more desirable to potential buyers. A recent Freddie Mac research shows that homes with higher energy efficiency sell 2.7% more on average than homes with lower energy efficiency.


If you want to learn more about how energy efficiency affects your home value, make you’re you read our article on the topic:


How Home Energy Efficiency Affects Your Home Value


Add square footage

Adding an addition to a home can increase its overall square footage and can make it more valuable. This approach can be especially useful if your home is located in a desirable neighborhood, but is a smaller size than the homes around you.


Consider curb appeal

First impressions are essential. Fix up landscaping, paint the exterior, and ensure the front door is in good condition. Always use neutral colors and try to emphasize your exterior trim and window shutters with slight color contrast.


Get a home inspection

Before listing the house, get a home inspector to come and identify any issues that may need to be addressed before listing. You don’t want major issues about the condition of your home to come up after your property goes under contract. This is because it can scare away your buyers, and they may cancel the contract.


Hire a real estate agent

A real estate agent can give you a good idea of what home improvements will be most desirable for buyers in your area. Your agent can also give you a better idea of the current real estate market conditions.


It is important to remember that not all renovations will result in a significant return on investment. Therefore, it’s important to carefully consider the cost and potential return before embarking on a renovation project. Also, it’s essential to keep in mind that renovation costs can vary greatly depending on location and the type of renovation.


Homescala’s Renovation Portal can provide excellent insights into what renovation items in your home could increase its value the most. Our algorithm takes into consideration multiple home attributes like location, condition, size, and many more, in order to provide unique and helpful information that can help you with your decision-making process.


a bedroom renovation worth doing before selling your home


Pros and Cons of Renovating Your Home Before Selling


Home renovation can come with both pros and cons, depending on the specific project and the homeowner’s goals.


On one hand, renovating a home can increase its value, improve its appearance, functionality, and livability, and make it more attractive to potential buyers. Renovations allow homeowners to personalize their living space according to their own preferences and lifestyle.


On the other hand, renovation can be costly and time-consuming and may not result in a significant return on investment. Additionally, renovation can be stressful, and there is a risk of over-renovating or not appealing to all buyers.


Before you renovate your home, it’s essential to carefully consider the cost, potential ROI, and personal goals. You should also be aware of local regulations, permits, and warranties. Before you decide if it is worth renovating your home before selling it, make sure to go over the pros and cons of it.


table showing what are the pros and cons of renovating your home before selling it
(Designed by: Homescala)


Pros of renovating your home before selling it:

  1. Increased home value. Renovations can increase the overall value of a home, making it more attractive to potential buyers and potentially resulting in a higher sale price.
  2. Increased curb appeal. Renovations can improve the exterior appearance of a home, making it more visually appealing to potential buyers.
  3. Interior appearance. Renovations can make your home’s interior appearance more modern, stylish, and functional to better reflect your personal taste and lifestyle.
  4. Improved functionality. Renovations can improve the overall functionality and livability of a home.
  5. Addressed condition issues. Renovations can address any issues that may be affecting the home, such as structural problems, outdated systems, or energy inefficiency problems.
  6. Faster sale. Renovated homes often sell faster than homes that are in need of repairs or updates.
  7. Personalization. Renovation allows homeowners to personalize their living space according to their own preferences and lifestyle.
  8. Cost-effectiveness. In some cases, renovating your home can be more cost-effective than buying a new home, especially in areas where real estate prices are high.
  9. Flexibility. Undertaking renovations allows you to make changes that align with your personal preferences and goals for the home.



Cons of renovating your home before selling it:

  1. High cost. Badly planned and managed renovations can be expensive and may not result in a significant return on investment.
  2. Time-consuming. Unorganized renovations can take a lot of your time.
  3. Stressful. The renovation process can be stressful, especially if not completed on schedule.
  4. Risk of over-renovating. Some homeowners may renovate more than is necessary, which can result in overspending.
  5. Risk of not appealing to all buyers. Some over-personalized renovations may not appeal to all buyers and may limit the pool of potential buyers.



Cost-Effective Renovation Ideas for Sellers


If you’re asking yourself what renovations are worth doing before selling, here are some cost-effective renovation ideas that will help you save money and increase your home’s value:



If you want to renovate your home, you should keep in mind that a fresh coat of paint can do wonders for a room and is one of the most cost-effective ways to renovate. Choose a neutral color to appeal to a wide range of buyers if you plan to sell your home.



Laminate or engineered wood flooring can be an excellent option for those on a budget. Laminate is a more cost-effective option but can still give the appearance of hardwood.



Updating lighting fixtures can add a modern touch to any room and is a relatively inexpensive way to renovate.


Kitchen and bathroom updates

Adding new countertops and cabinets in the kitchen and bathroom can give your room a fresh new look without breaking the bank.



Improving your home’s curb appeal can be as simple as landscaping the front yard or adding a small garden.


Window treatments

Adding curtains or blinds to windows can add privacy and style to any room.


Hardware and fixtures

Updating hardware and fixtures, such as door knobs, faucets, and light fixtures can give a room a new look without a major renovation.


Storage solutions

Adding shelves, cabinetry or built-ins can provide more storage space and a more polished look.


Power washing

Power washing the exterior of your home can make it look new again and is a cost-effective way to improve curb appeal.



Avoid Over-Renovating


When you think about what you should not do before selling your house, over-renovating is one of those things. Over-renovating can be costly and may not provide a good return on investment. Making extensive changes to a home can disrupt the character and charm of the original structure. This can negatively impact the home’s value and curb appeal.


It is important to consider the potential return on investment and the impact on your home’s overall aesthetic before making extensive renovations. It’s also important to have a clear idea of what you need and what you want before starting any renovation project.


There are several ways to avoid over-renovating:

  1. Have a clear plan. Before starting any renovation project, have a clear idea of what you need and what you want. Make sure the changes you’re making will add value to your home and align with your long-term goals.
  2. Consider the neighborhood. Keep in mind the style and character of the surrounding homes. Making extensive changes that don’t align with the neighborhood aesthetic can negatively impact your home’s value.
  3. Set a budget. Create a renovation budget for your home renovation and stick to it. Over-renovating can quickly become costly, so it’s essential to have a clear idea of how much money you can afford to spend.
  4. Be realistic. Be realistic about what can be accomplished within your budget and timeline. Making extensive changes to your home that are not feasible will only lead to disappointment.
  5. Get professional advice. Consult with a real estate agent, contractor, or interior designer to get a better understanding of what changes will add value to your home and which changes should be avoided.
  6. Research potential return on investment. Before making any changes, research the potential Return on Investment (ROI) of the renovation. Changes that have a high ROI, such as updating a kitchen or bathroom, are more likely to add value to your home.
  7. Don’t over-personalize. Keep in mind that the more personalized the changes you make, the less likely they will appeal to potential buyers if you decide to sell your home in the future.



The Importance of Staging Your Renovated Home


Staging a renovated home is important because it allows potential buyers to envision themselves living in the space. A staged home presents a cohesive and polished look that highlights the property’s best features and helps buyers see the potential of the property.


Additionally, staging can make a small or outdated space look more spacious and modern. This can be especially important for renovated homes, as the changes made may not always be immediately apparent to potential buyers.


Staging also helps to neutralize the home, meaning that potential buyers are more likely to see the space as their own, rather than being distracted by the personal style of the current owners.


Staging can also help to make a home stand out in a crowded market, allowing it to be seen as more desirable and increasing the likelihood of a quick sale at the best price possible.


Overall, staging a renovated home is an effective way to showcase the property’s potential and help it appeal to a wide range of buyers.


Here are the most important points you need to focus on while staging your home:



Remove any excess items from your home and store them away. This will make the space look bigger and more inviting.



Make sure the home is spotless. A clean home will make a great first impression and help buyers envision themselves living there.


Rearrange furniture

Arrange furniture in a way that maximizes the flow and functionality of each room.


Add finishing touches

Add small touches such as pillows, throws, and artwork to make the home look more inviting.


Focus on lighting

Make sure each room is well-lit. Natural light is a plus, but consider adding lamps or other lighting sources to make the space warm and welcoming.


Stage outdoor spaces

Remember to stage outdoor spaces such as the front porch, backyard, and patio. These areas can add value to the home and should be included in the overall staging plan.


These are the most important things to do while staging your home. It’s a good idea to consider hiring a professional stager to help you prepare the home for sale. They have the experience and expertise to showcase the property’s best features and create an inviting atmosphere for buyers.


If you want to find out more about staging your home, read our article on the topic.


Home Staging – Everything You Need to Know to Sell Your Home Fast





In conclusion, renovating a home before selling it can be a smart move, but it’s important to approach it with a clear plan and realistic expectations.


It’s essential to consider the starting condition of your home, the potential return on investment from your renovation, and the style of other homes in your neighborhood before making any changes.


Additionally, it’s important to set a budget and consult with professionals such as real estate agents, contractors, or designers. Staging is also a great way to showcase the property’s potential and appeal to a wide range of buyers.


However, if you make the decision to renovate your home, it’s important to remember that over-renovating can be costly and may not provide a good return on investment. To ensure that you don’t over-renovate, you can always order Virtual Estimate first.


Additionally, Homescala’s Renovation Portal can give you a clear view of which renovation items will offer the best return on investment, how much your renovation will cost, your home’s pre-renovation value, and your home’s post-renovation value. You will also get money-saving recommendations, and you can contact multiple contractors so you can determine which one suits you best.



Writen by: The team at Homescala

We are a team of dedicated individuals with more than 20 years of experience in Home Improvement and Real Estate. Our mission is to help homeowners increase home value and equity through smart renovations.

We also help homebuyers find properties with investment potential, and start their ownership with extra home equity.

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