Renovation ROI Calculator

Does Renovating Before Selling Pay Off?

The conventional wisdom that renovating always increases your sale price is often wrong. Most major renovations return 60-80 cents on the dollar in value added to the sale price, meaning you spend $30,000 and the home sells for only $20,000-$24,000 more. The exceptions are cosmetic updates, curb appeal improvements, and projects that bring the home to neighborhood standard (e.g., replacing the only unrenovated kitchen on the block).

Before committing to renovations, ask: is the home priced below market because it needs updating, or is it already fairly priced? If comparable updated homes in your neighborhood sell for $50,000 more, a $25,000 kitchen renovation may indeed pencil out. If your home is already priced at market for its condition, renovating to chase a higher price tier rarely works.