Do NOT Renovate Before Selling... In This Case

It has recently come to my attention that to own a home is to constantly dream up ways that very home could be renovated:

• How can we make this dining room bigger?

• Is there any way we could add a powder room to the main floor?

• Can this basement be finished and turned into an apartment?

I don't think I'm alone in this. Even when I'm totally happy in my home, I am always optimizing, optimizing, optimizing. I think it's normal and natural to wonder how we can update our homes to meet our ever-evolving needs and wants. And if you have the ambition and the budget, why not go for it? But if you know you'll be selling your home soon, I would think twice about a remodel.

Maybe that seems counterintuitive. "If I'm selling my home, wouldn't adding a bedroom or remodeling the kitchen get me a better sales price?"

Your newly remodeled space might sell faster, but it's possible you won't completely recuperate the cost of your remodel in the sales price. When the cost of labor and goods are high, it rarely pencils for a homeowner to hire a contractor to complete a big remodel before selling. What I suggest avoiding is major renovation: moving walls, adding floors, and/or drastically altering the form and/or function of your home.

I am all for freshening up your space before selling with some new paint and flooring, or even updating appliances. If you have a little bit of spare cash sitting around, it’s best used for general sprucing up: caulk the tubs and sinks, prime and paint the baseboard, replace missing/torn window screens, update the kitchen cabinet handles/pulls, refresh the flower beds, etc.

This advice may not apply if you are a licensed contractor or you're able to do the work yourself. If you have the time, you could stand to net more than you spend on supplies if you can produce professional, polished results. (But please do consider your time, our most precious resource!)

I have less-than-savory news if you’ve already opened up walls and started work on something big and you need to sell soon: you really need to wrap up your projects before you sell. Very few buyers want to inherit a home with projects, and those that do expect to buy a home that needs work at a discount.

The bottom line? Renovate for you if it’s something you want or need while you live in the home. But just remember, a future buyer likely will not appreciate the renovation as much as you might expect, nor will they necessarily be willing to cover the cost of that renovation in the purchase price.