Should You Renovate Your Home Before Selling? What Actually Adds Value

By Bridget Salazar, OC Homegirl | REALTOR® & Certified Residential Appraiser

If you're thinking about selling your home, you may be looking around and thinking:

“Do I need to update all of this before I put it on the market?”

New countertops? New flooring? Paint the cabinets? Remodel the bathroom?

Before you start spending thousands of dollars, there's something every seller needs to understand:

Just because an improvement costs $20,000 doesn't mean it adds $20,000 to the value of your home.

As both a REALTOR® and Certified Residential Appraiser, this is something I want sellers to understand before they start renovating.

Cost and Value Are Two Different Things

One of the biggest misconceptions homeowners have is assuming they'll get back every dollar they spend on an improvement.

Real estate doesn't always work that way.

Buyers may absolutely prefer an updated kitchen, newer flooring, or a remodeled bathroom. But the amount those improvements contribute to your home's market value depends on your property and your local market.

That's why I don't recommend automatically starting a major renovation just because you're getting ready to sell.

Start With the Things Buyers Notice Immediately

Before considering a major remodel, take care of the basics.

Fresh paint, clean flooring, working light fixtures, repaired doors, clean landscaping, pressure washing, and a deep cleaning can completely change the way a home feels.

These aren't necessarily glamorous improvements, but they can make a huge difference in a buyer's first impression.

And first impressions matter.

Don't Remodel Your House for Yourself

This is where sellers can accidentally spend too much money.

You may LOVE a certain cabinet color, countertop, flooring style, or bathroom tile.

But you're moving.

If you're renovating specifically to sell, the question shouldn't be:

“What would I want?”

The better question is:

“What does the market expect at this price point?”

There's a big difference.

Look at Your Competition

If you're preparing to sell a home in Livingston, Overton County, or the Upper Cumberland, we need to look at what buyers will compare your home against.

If every competing home in your price range has updated kitchens and yours hasn't been touched in 25 years, that matters.

But if most comparable homes have similar finishes to yours, spending $30,000 on a brand-new kitchen right before selling may not make financial sense.

Your home doesn't have to be the fanciest house on the market.

It needs to be properly positioned against its competition.

Sometimes Selling As-Is Makes More Sense

Not every home needs to be remodeled before it hits the market.

Sometimes the smartest move is to price the property appropriately for its current condition and let the next owner make the improvements they want.

This can be especially important if you're considering a renovation that will take months, require contractors, or create a large upfront expense.

Before spending that money, I want to know whether the market is likely to reward you for it.

Improvements and Appraisals

This is another area where my appraisal background comes into play.

Appraisers don't simply take the cost of an improvement and add that amount to the home's value.

The market has to support the contribution.

An appraiser analyzes comparable properties and looks for evidence of how buyers react to differences in condition, quality, features, size, and other characteristics.

That means a $50,000 renovation doesn't automatically equal a $50,000 increase in appraised value.

So, What Should You Do Before Selling?

Before you start tearing out cabinets, call your REALTOR®.

Seriously.

Let someone who understands the local market walk through the property with you first.

There may be improvements worth making.

There may be inexpensive changes that give you a much better return.

And there may be projects I'd tell you to leave completely alone and save your money.

I'd much rather have that conversation with you before you spend $20,000 than after.

Thinking About Selling in the Upper Cumberland?

If you're considering selling your home in Livingston, Overton County, or anywhere in the Upper Cumberland, let's talk before you start renovating.

I'll help you look at your home, your competition, current market conditions, and the improvements that could make the biggest difference.

Sometimes preparing your home for the market means making improvements.

Sometimes it means knowing which improvements NOT to make.

Bridget Salazar, OC HomegirlREALTOR® | Certified Residential Appraiserwww.ochomegirltn.com