Should You Renovate Before You Sell?

You're ready to sell your home, but then you start noticing everything that's "wrong" with it. The kitchen cabinets look dated. The bathroom could use updating. Maybe the basement needs finishing. Before you know it, you're planning a $50,000 renovation.

But here's the critical question: Will you actually get that money back when you sell?

The answer isn't always straightforward. Some renovations can significantly boost your sale price, while others might cost you more than they add in value. Let's break down what's worth doing—and what's not.

The Golden Rule of Pre-Sale Renovations

Only renovate if the expected return exceeds the cost, or if the repair is necessary to make the home sellable. Your goal isn't to create your dream home—it's to maximize your net proceeds.

High-ROI Renovations Worth Considering

1. Fresh Paint (ROI: 100%+)

This is the single best investment you can make. A fresh coat of neutral paint throughout your home can:

Cost: $2,000-$5,000 for a full home
Return: Often 100-150% in increased perceived value
Why it works: Makes spaces look clean, modern, and move-in ready
Pro tip: Stick to warm whites and soft greys—they appeal to the widest audience

2. Minor Kitchen Updates (ROI: 80-90%)

You don't need a full kitchen reno, but small updates can have big impact:

Cabinet refacing or painting: $3,000-$8,000 vs. $25,000+ for new cabinets
New hardware and fixtures: $300-$800 for a modern refresh
Updated lighting: $500-$2,000 to brighten the space
New countertops (if dated): $2,000-$5,000 for quartz or granite

Skip the full gut: A $40,000 kitchen renovation rarely adds $40,000 to your sale price. Buyers have different tastes and many prefer to customize themselves.

3. Bathroom Refresh (ROI: 70-80%)

Similar to kitchens, minor updates beat major overhauls:

Regrouting and recaulking: $200-$500 (looks dramatically cleaner)
New fixtures and hardware: $400-$1,200
Updated vanity and mirror: $800-$2,500
Fresh tile (if necessary): $1,500-$4,000

4. Curb Appeal Improvements (ROI: 100%+)

First impressions matter enormously. Budget-friendly fixes include:

Landscaping and lawn care: $500-$2,000
New front door or paint: $300-$2,000
Power washing exterior: $200-$500
Outdoor lighting: $300-$1,000
Mailbox and house numbers update: $100-$300

5. Flooring Repairs/Updates (ROI: 60-80%)

Damaged or severely outdated flooring can hurt your sale:

Refinish hardwood: $3-$5 per sq ft (vs. $8-$12 for new)
Replace worn carpet: $2-$6 per sq ft
Luxury vinyl plank (budget-friendly): $3-$7 per sq ft installed

When to skip it: If flooring is dated but not damaged, consider a price adjustment instead.

Low-ROI Renovations to Avoid

Renovations That Rarely Pay Off:

❌ Swimming pools: ROI 30-50% (many buyers see them as maintenance liabilities)
❌ Finished basements: ROI 50-70% (expensive, not all buyers value them)
❌ High-end luxury upgrades: ROI 40-60% (you won't recoup luxury material costs)
❌ Major additions: ROI 50-70% (rarely add dollar-for-dollar value)
❌ Over-improving for the neighbourhood: You can't exceed the market ceiling

The Staging vs. Renovating Decision

Sometimes strategic staging delivers better ROI than renovations:

Choose Staging When:

✓ Your home is dated but functional
✓ You're in a hot market
✓ Your timeline is tight
✓ You want to minimize upfront costs

Cost: $2,000-$5,000
ROI: 5-15% increase in sale price

Choose Renovating When:

✓ Features are broken or non-functional
✓ You're in a slower/buyer's market
✓ Competing homes are updated
✓ Small fixes will yield clear returns

Cost: $5,000-$20,000 (smart updates)
ROI: 70-100%+ if targeted well

How to Make the Right Decision

Follow this decision-making framework:

1. Get a pre-listing home inspection
Identify issues buyers will find anyway ($400-$600)
2. Research your local market
What condition are competing homes in? What are buyers expecting?
3. Get contractor quotes
Know exact costs before committing
4. Calculate potential ROI
Will this renovation add at least as much value as it costs?
5. Consider your timeline
Renovations delay your listing—is that delay worth it?
6. Think about financing
Can you afford the upfront cost? Will it affect your next home purchase?

The "Sell As-Is" Alternative

Sometimes the smartest move is not renovating at all:

Price it right: Discount your asking price by slightly more than renovation costs to attract buyers looking for value
Market to investors/renovators: Some buyers specifically want fixer-uppers
Save time and stress: Avoid contractor delays, surprise costs, and living through renovations
Let buyers customize: Many buyers prefer to renovate to their own taste anyway

Pro Tip: Test the Market First

Before spending thousands on renovations, consider soft-listing your home on HouseIndex to gauge buyer interest. You might find that buyers are willing to pay more than you expected—even without renovations. If you get strong interest, sell as-is. If feedback suggests specific updates, then you'll know exactly what to fix.

Bottom Line

Renovating before selling can be smart—if you're strategic about it. Focus on:

✓ Low-cost, high-impact cosmetic updates
✓ Repairs that make the home functional and safe
✓ Improvements that match your neighbourhood's standards
✓ Updates that appeal to the broadest buyer pool

Avoid expensive, taste-specific renovations that won't deliver ROI. And remember: your goal is to maximize your net proceeds, not to create the perfect home.

When in doubt, test the market as-is—you might be surprised by what buyers are willing to pay.