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If you’re planning to sell your home, deciding whether to upgrade the kitchen, remodel the bathroom or tackle other big renovations before putting it on the market can feel overwhelming.
The truth is that some improvements might help attract buyers and raise your home’s value, but not every update is worth the investment.
Here are reasons you should or shouldn’t make major upgrades before selling, according to real estate agents.
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Reasons To Make Major Upgrades Before Selling
Here are some reasons to consider making major upgrades before selling your home, according to three real estate agents.
To Attract More Buyers
Erin Hybart, a Louisiana Realtor, said, “Upgrades can help your home stand out compared to the competition, increase perceived value and make it more appealing to a wider audience.”
Desiree Avila, a board-certified realtor in Fort Lauderdale, Florida, agreed that if you make major upgrades, it could potentially attract more qualified buyers.
“I say ‘could’ because it also depends on the upgrades and the design choices made,” she explained. “If the design choices are too exotic, too specific or too peculiar it could be a huge turn-off…Homeowners considering upgrading before selling should choose designs with neutral colors that have a general appeal.”
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To Get a Substantial Return
Brett Johnson, licensed real estate agent and owner of New Era Homebuyers, a real estate investment company located in Denver, Colorado, said that making major upgrades can provide a substantial return on investment, which can often allow you to recoup a multiple of the amount you spent on the renovation.
“These upgrades can also make the property much more appealing to potential buyers, increasing its desirability and leading to a faster sale,” he said. “Homes that are move-in ready with modern finishes tend to attract more interest, and this demand can drive up both the sale price and the speed at which the property sells.”
Reasons To Avoid Making Major Upgrades Before Selling
Save your money. Take note of these reasons to decide against making major upgrades.
The Upgrades Will Take Too Much Time
Avila explained that depending on what type of upgrade a homeowner is considering, with contractors and permitting it could take a lot of time. “During that time the market could change right beneath their feet and all that money they put into the house to get more money out of it becomes moot,” she said.
The Cost Outweighs the Value
Avila said, “A homeowner may spend $50K on a beautiful kitchen, but that does not automatically add $50k of value to the house. So, in practical terms, it does not make financial sense.”
Hybart agreed that if the cost of upgrades outweighs the return, it may not be worth it. “Some upgrades might appeal to a smaller part of the market or feel too generic, reducing the perceived value for some buyers,” she said. “It’s important to weigh the cost versus the potential boost in sale price.”
The Upgrades Don’t Align With What Buyers Expect
“While upgrades can enhance a property’s value, it is essential to be strategic about which improvements will yield the most return — especially given the current market conditions and the specific area where the home is located,” advised Johnson. “It’s important to choose upgrades that are aligned with what buyers in the area expect, rather than going overboard on costly features that may not pay off.”
Major Upgrades That Can Increase Value or Attract Buyers
Here are some suggestions for major upgrades that could pay off.
Upgrading Kitchen and Bathrooms
“Homes with nice kitchens and beautiful bathrooms always catch buyers’ attention,” said Avila. “But even with these upgrades, a homeowner should remember that cost does not equal value. It may help them sell quicker, but they most likely won’t recover their full investment.”
Upgrading the HVAC System
Hybart said that upgrading an older HVAC system is an improvement that can attract buyers from a marketing angle.
Johnson agreed. “Energy-efficient upgrades like new HVAC systems or solar panels can also attract buyers looking to save on long-term utility costs,” he said.
Replacing Damaged Flooring
Hybart also said that if the flooring is significantly damaged, it can help to replace it. However, she said to avoid replacing flooring simply because it’s outdated. “These changes might not provide enough return on investment, and many buyers would prefer to make cosmetic updates themselves,” she explained.
Adding Square Footage
“Expanding the square footage of the home, such as finishing a basement or adding a bedroom, can make the property more valuable,” said Johnson.
Major Upgrades That Are Better To Avoid
Johnson said that you should avoid highly personalized or luxury finishes that may not appeal to a broad range of buyers.
“For example, expensive custom features may not be worth the cost if they don’t resonate with the local market,” he said. “Structural changes that require extensive work and don’t guarantee a return should also be avoided, as should costly additions, like swimming pools, if they aren’t standard in the neighborhood. Over-the-top landscaping or outdoor amenities that require high maintenance are often unnecessary and may not significantly increase the home’s value, making it better to sell without those additions.”
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: 5 Reasons You Should or Shouldn’t Make Major Upgrades Before You Sell Your House