Should You Renovate Before Selling? What the Data Says About ROI

When it comes time to sell your home, one of the biggest questions sellers face is whether to renovate before listing.

On one hand, a freshly updated home can attract more buyers and potentially higher offers. On the other, renovations take time, money, and energy — and there’s no guarantee you’ll get all that investment back.

So what’s the right move? Let’s look at what the data actually says about renovation returns, which projects tend to pay off, and when it might make more sense to skip the upgrades and sell your house as-is.

Understanding ROI: The Basics

Understanding ROI: The Basics

ROI (Return on Investment) measures how much of your renovation cost you’re likely to recoup when selling. For example, if you spend $10,000 updating your kitchen and your home’s value rises by $7,000, your ROI is 70%.

According to the latest Remodeling Cost vs. Value Report (2025), the average ROI for most home improvements has decreased slightly due to rising labor and material costs. This means homeowners need to be strategic — not every project adds enough value to justify the expense.

Here’s what the national data shows for midrange projects:

• Minor kitchen remodel: ~70–75% ROI
• Bathroom remodel: ~60–65% ROI
• New garage door: ~90% ROI (often the highest return)
• New roof: ~60% ROI
• Adding a deck: ~55% ROI

These averages vary depending on your local market, buyer preferences, and the home’s condition.

Renovations That Typically Pay Off

Some improvements consistently deliver better returns because they improve first impressions and address essential buyer concerns.

1. Curb Appeal Upgrades

Your home’s exterior sets the tone for the entire showing. Simple updates like:

• A fresh coat of paint on the front door
• Power washing the siding or driveway
• Replacing old house numbers or lighting

These small changes often yield large psychological returns. Studies show that curb appeal alone can increase perceived home value by up to 7%.

2. Minor Kitchen Updates

You don’t always need a full remodel to impress buyers. Swapping outdated cabinet handles, refinishing countertops, and upgrading appliances can make a kitchen feel modern without breaking the bank.

3. Bathroom Refresh

Bathrooms are another high-impact area. Re-grouting tiles, replacing fixtures, or adding new mirrors can significantly improve the look without requiring major investment.

4. Energy Efficiency Improvements

Adding insulation, sealing windows, or installing a programmable thermostat may not be glamorous, but today’s buyers value energy efficiency. You can often see solid ROI through both increased value and buyer appeal.

When Renovating Doesn’t Pay Off

Not every project is worth doing — especially if you’re preparing to sell soon. Major renovations rarely recoup 100% of their cost, and they can delay your sale by months.

1. Luxury Upgrades in Average Neighborhoods

A $100,000 kitchen in a modest area won’t necessarily fetch a higher selling price. Buyers tend to value homes based on neighborhood comps, not just finishes.

2. Personalized Designs

Bold tile colors, ultra-modern fixtures, or custom built-ins might suit your taste but could turn off potential buyers. Neutral, timeless updates work better when you’re planning to sell.

3. Extensive Structural Changes

Adding a new room or expanding square footage often costs far more than it adds in value — especially if local property prices are capped.

The Hidden Costs of Renovating Before Selling

Even small renovations can spiral in cost and time. You’ll need to consider:

• Permits and inspections
• Contractor delays
• Inflation in material prices
• Unexpected repairs once demolition starts

Plus, during renovations, you may have to move out temporarily, which adds rental or storage expenses.

According to a 2024 survey by HomeLight, nearly 30% of sellers who renovated before selling spent more than expected, and 1 in 5 delayed listing by over three months.

If you’re trying to sell quickly or simply want to move on, these added stresses may not be worth it.

The Market Factor: Timing Matters

Whether renovations pay off often depends on the state of your local real estate market.

In a hot seller’s market: Homes often sell fast regardless of condition. Buyers are more willing to overlook cosmetic issues, so you may not need major upgrades.

In a slower market: Some light improvements can help your property stand out from the competition, especially if buyers have more choices.

If you’re unsure, ask a local real estate professional or investor for a comparative market analysis (CMA). This report shows what similar homes (renovated vs. unrenovated) have sold for in your area.

The Case for Selling As-Is

For many homeowners — especially those with older properties, inherited homes, or tight timelines — selling “as-is” can be the smarter move.

Instead of spending thousands on renovations that may not fully pay off, you can sell directly to a company that buys homes in any condition. These buyers, often known for slogans like we buy houses, specialize in quick, hassle-free sales without repairs, showings, or commissions.

This approach is especially appealing if your property:

• Needs significant updates
• Has structural or water damage
• Is sitting vacant
• Is part of an estate or divorce settlement

In these cases, your net return (after avoiding renovation costs and months of delay) can actually be higher than trying to sell a fully renovated home through traditional channels.

Real Data: Renovate or Not?

Here’s what multiple studies and surveys show about renovation ROI:

Renovation Type

Avg. Cost

Avg. Value Added

ROI %

Minor Kitchen Remodel

$26,000

$18,000

69%

Bathroom Remodel

$24,000

$14,000

58%

Roof Replacement

$30,000

$18,000

60%

Garage Door Replacement

$4,000

$3,800

95%

Siding Replacement

$16,000

$11,000

68%

While some projects yield decent returns, very few exceed 90%. And since selling costs (agent fees, closing costs, taxes) often eat up another 6–8%, you may not see much net profit.

That’s why many homeowners choose to sell quickly instead of chasing uncertain renovation returns. Companies that help homeowners sell my house fast often provide fair, no-obligation offers — letting sellers skip the stress and move on with cash in hand.

Final Thoughts

The decision to renovate before selling depends on your situation, timeline, and local market — but the data is clear: full renovations rarely produce dollar-for-dollar returns.

If your home is outdated but livable, a few affordable upgrades (paint, lighting, landscaping) can boost appeal without draining your savings. But if your property needs major repairs or you’d rather avoid the hassle altogether, selling as-is can be the more practical — and sometimes more profitable — path.

The key is to weigh the numbers honestly and choose the route that best aligns with your goals. Sometimes, skipping renovations and selling directly isn’t just faster — it’s financially smarter.