How Much Should You Spend on Renovations Before Selling?

You buy a home for yourself or your family because you want to live there. You’re also likely hoping that your investment will pay off—that when you go to sell, the property will be worth more. 

But even well-maintained homes can start to look dated, accumulate damage and dirt, or need repairs. So, before putting your home on the market, you’ll probably need to do a few upgrades and renovations to maximize your sale. 

It’s a fine line, though: if you spend a ton on renovations that don’t boost the sale value of your home much, you won’t recoup your investment. So, wise renovators prioritize essential repairs and high-value renovations that pay out in an excellent sale price. 

Here’s a guide on how to savvily renovate and get the most out of your budget. 

How much should I spend? 

There’s no one answer for how much a homeowner should spend on renovations. After all, not all properties have the same renovation potential (or need) or stand to earn the same amount on the market. A 5,000-square-foot home in San Francisco might sell in the millions, while a smaller property in a suburban area could score a few hundred thousand. The homeowner of that home selling in the millions might decide to invest tens of thousands in renovations since they feel they can earn it back on a big sale. But a homeowner that’ll earn

Here are a few steps you can take to determine how much you should spend.

Talk to your real estate agent

Not all homeowners need to renovate their properties before sale—at least not extensively. There’s no need to overhaul your home and change its style if the property is already appealing.

Have your listing agent do a walkthrough and visually assess your home. They may recommend leaving it as-is, doing a bit of home staging, or simply tidying up. Or they may suggest a few low-investment, high-impact renovations, like repainting, giving your kitchen a DIY refresh, or doing landscaping touchups to drive curb appeal,

Real estate agents are excellent sources of information on how much you should renovate because they understand what buyers are looking for. Instead of trusting your instincts on what home improvements to make, you’ll be making choices that align with market trends.

Get your home inspected

Home inspections turn up issues with properties that don’t meet the untrained eye. A professional inspector may discover mold, pests, or structural issues that demand urgent repair. Then, it’ll be up to you to decide whether to make these changes and offer a more move-in-ready property to a potential buyer or take a hit on the sale price because your home comes with known flaws.

If you need a reliable contact for a home inspector, talk to your real estate agent. They can recommend someone their clients have had good experiences with in the past.

Determine how much you hope to earn

Figure out how much you would like to earn on your sale (and back up your numbers with market data). Look up how much similar properties sell for in your area or get the help of a real estate agent or appraiser. 

Once you know how much you can potentially earn, you can decide what portion of those projected earnings you’d be comfortable using to repay yourself for renovations. That is, if you’ll earn $100,000 on your home sale and you’d like to net $80,000 in earnings, then $20,000 would be your max renovation budget. 

Research high-ROI renovations 

Not all renovations payout. For example, remodeling your kitchen, putting in a pool, or converting spaces can be risky, low-ROI (return on investment) moves. Check out a recent cost-versus-resale-value report to find out which renovations tend to recoup the investment and which are a losing game.

Know (roughly) what you’re getting into

So, you have an idea of the renovations you’d like to do. You’ve done your research and believe they’ll pay out in the end. Before moving forward, check out estimates on how much these renovations usually run. Here’s some data from Architectural Digest that provides a high-level view of home improvement costs.

Kitchen remodel: $10,000 to $50,000

Bedroom remodel: $10,000 to $15,000

Living room remodel: $5,000 to $10,000

Bathroom remodel: $9,000 to $20,0000

Garage remodel: $3,000 to $15,000

The above figures account for remodeling, which implies extensive renovation and can include massive undertakings like moving walls. So, if your planned renovations aren’t that comprehensive, they might figure into the lower end of these ranges (or less). Here are a few more data points to consider on common high-value updates from a 2024 cost-versus-value report. 

Garage door replacement: Around $4,500

Front door replacement: Around $2,500

Siding replacement: Around $20,500

Adding exterior stone veneer: Around $11,000

Deck addition: Around $18,000

Understand when renovation is a bad move

According to experts, there are a few scenarios in which you should seriously reconsider investing so much as a cent in your home. If you fall into one of the following categories, your potential renovation budget could be zero. 

• The renovations can’t happen on your timeline: If you need to put your home on the market immediately and you can’t, for financial or other reasons, make the projected renovations on your schedule, consider selling your home as-is.

• You don’t have an interim living arrangement: If moving into a rental or hotel while major renovations are being done at home isn’t an option, you may have to forgo them. That said, you don’t have to ditch your renovation plan entirely. Perhaps there are small, manageable DIY projects you can do that’ll make an impact. 

• The renovations “over-improve” your home: According to the folks at Realtor.com, there’s such a thing as over-improving your home. Suppose renovating your home makes it more luxurious than surrounding properties. You could have trouble selling. Your home would ostensibly be worth far more than the properties in your neighborhood, but an appraiser might value your home at less as this is what the local housing market dictates.

Ready to renovate? The next steps 

Once you’ve considered factors like what work your home needs, how much you feel comfortable spending, and what your projected renovations cost, you’re closer to answering the question of how much you should (and will) spend.

Now, you need actual estimates. Calculate the cost of DIY work (like repainting your kitchen cabinets or adding flowerboxes under your home’s windows). And for expert work that you’ll outsource (like exterior painting, putting in new roofing tiles, or fixing electrical, HVAC, or plumbing issues), meet with contractors. Interview several and compare quotes to find the highest-quality, most budget-friendly option. 

Need money for renovations? Ask your agent about Titus

Titus is a lender that partners with top listing agents to offer their clients a unique line of credit for repairs and renovations. If you’re working with a Titus affiliate agent, you gain access to a closing line of credit (CLoC) at no upfront cost to you.

Credits of up to $25,000 are zero-interest and you never pay anything out of pocket. Plus, by working with a Titus partner agent, you can rest assured that you’re in the best possible hands for selling your property quickly and at top dollar. Learn how it works here.