How Much Should You Spend on Renovations Before Selling? A Price-Tiered Guide for Homeowners

Thinking of selling your home? Wondering if you should fix it up first? Let's figure out what to do and what to leave alone, and what to avoid so buyers aren't scared off. Fast Lane Real Estate experts shared their expertise to help us understand this issue.

When to Make Repairs Before Selling

Seasoned sellers think fixing stuff up can matter, but is it always a must when you're selling your place? If you ignore this, your house could be on the market forever, or you might have to drop the price a ton. Before you start fixing things, really look at your house. Ask yourself, Would I live here like this? Or does this place need a facelift?

Here's when fixing might be the way to go:

• For a messy house: If your house looks a bit rough around the edges with bad floors, walls, or old wallpaper, it’s a good idea to fix it up a bit before you sell. You don’t need to go overboard; just a fresh coat of paint and wallpaper can really improve things. Even if the new owner plans to change things, a clean house makes a better impression.

• For nicer houses: If you’re selling a cheaper house, buyers mostly care about the price and how big it is. If fixes make the price jump too much, they'll probably pick a cheaper house that needs work. But if you're selling a high-end apartment, looks matter. So, it makes sense to spend on nice materials and a cool design. Just don't go too wild with styles that might scare people off. Keep it classy but neutral. We’ll get into options depending on the house price in a bit.

• Want a bigger profit: Keep in mind that fixing up your apartment can pump up its value by, say, 20%, depending on how much you do. A basic refresh in simple colors is a solid start. If you want to ask even more, do bigger jobs, like redoing the bathroom. Don't get carried away, though — a price that's way too high will scare buyers off and keep your house on the market longer.

Now you know the biggest secret: it's not always worth spending money on repairs. And when they are needed and how much money is reasonable to spend on them, we'll look further.

What to Consider Before Renovating

Home buyers nowadays? Super picky! They check every single spot, hoping for a lower price. Here's what they care about when deciding if an apartment needs work:

• Building stuff: Walls need to be solid, no cracks or big damage.

• Layout changes: Any work done has to be signed off on. Apartments with unapproved changes? Hard to sell because nobody wants the trouble of ripping it out.

• Leaks: Stains or peeling wallpaper from water? Big no-no.

• Mold: Really bad since it's tough to get rid of.

• Wiring: Copper is way better than old aluminum. The same goes for new water pipes.

• Radiators: Need to be in shape, for when it gets cold.

• Windows: No drafts, broken glass, or frames that are twisted.

• Bathrooms: Tiles to towel racks, all good condition, no leaks, and smells nice!

• Floors: Shouldn't creak or have damage.

• Gas: If there's gas, all the pipes need to work right.

• Air flow: Vents can't be blocked, and the system must be working.

See problems? Get them fixed before selling. Figure out if fixing your old place is cheaper than buying a new one. The place needs to look good, make people want to live there. New owners might redo things their way, but a clean look helps sell it. Simple paint is a plus! Go with white or beige since they match anything.

How the Need for Repair Depends on the Price

Keeping your house in good shape is part of owning a home. Fixing it up can make it nicer and maybe even worth more if you sell. But it can be pricey. People often ask, 'How much should I spend on home improvements based on my home's value?' Well, it depends. A good rule is to match your budget to your home's current value and what you hope to gain — whether you just want to enjoy it more or get more money later.

Renovation Budgets by Home Price

We've mentioned several times in this article that the need for repairs and the amount of investment largely depend on the value of the home. For clarity, below we'll look at examples of necessary work for each price category and provide specific, reasonable cost figures.

$300,000 Home

It's unwise to spend more than 5-10% of the home's value on pre-sale renovations. Therefore, for this category, we'll budget no more than $30,000. As you can imagine, we're not talking about any major renovations. However, for this amount, you can bring the house into a fairly presentable condition with just some minor cosmetic repairs.

Things people fix include:

• Painting walls

• Fixing up the kitchen, like the cabinets and appliances

• Replacing bad floors

• Making bathrooms look new.

• Sprucing up the yard and outside paint

Spending more than $30,000 might not be worth it when you sell, as people looking in this price range are often looking for a good price, not luxury stuff. Clever renovations that look good and make the house work well are often the best way to spend your money. However, don't bother with remodeling, as it requires significant investment and additional approvals, without increasing the sale price. This means you'll simply waste time and money.

$500,000 Home

If you've got a $500,000 house, budget around 7% to 12% for renovations, which is about $35,000 to $60,000. Buyers at this price usually want nicer finishes, so think about fixing things up and making them look good. You could:

• Completely redo the kitchen with new appliances and strong counters.

• Fix up the bathrooms with better tiles and new sinks.

• Swap out old windows for ones that save energy.

• Put in new floors like hardwood or good laminate.

• Add decks or patios outside.

Fixing up your house like this makes it nicer to live in and easier to sell when people are looking for quality. Spending your money smartly can make your house worth more without going overboard compared to other houses nearby.

$750,000 Home

If your house is worth $750,000, you might spend about 8% to 15% of that on fixing it up. So, think between $60,000 and $112,500. Houses like these usually have more room and fancy stuff, so you can make things even nicer and work better. People usually fix up:

• Kitchens with cool cabinets, great appliances, and stone counters

• Bathrooms to feel like a spa

• Heating, cooling, and lights to save energy

• Install smart home stuff.

• Fix up the yard for fun times outside.

If you plan it right, fixing up your house not only makes it more fun to live in but can also help you sell it for more. Buyers in this price range want new things, so making smart upgrades can make your house look better than others.

$1,000,000 Home

Got a million-dollar pad? Expect to drop 10% to 15% (or even more — think $100,000 to $150,000+) on fixing it up. That kinda cash usually goes toward really nice stuff, cool features, and making the place yours.

You could:

• Create an awesome kitchen with pro appliances.

• Build spa-like bathrooms with top-tier materials.

• Add smart home tech for lights, security, and temp control.

• Construct outdoor kitchens, pools, or hangout areas.

• Do major changes like adding rooms or a guesthouse.

People with high-end homes spend more on renovations 'cause buyers with money want quality and custom touches. Solid renovations improve your home life and might even boost the property's value, which keeps it appealing to picky buyers.

Conclusion

So, figuring out how much to spend on home improvements involves balancing your budget, home value, and what you hope to achieve. Usually, on a $300,000, $500,000, $750,000, or $1,000,000 home, you might spend 5% to 15% on renovations. Bigger, nicer houses can handle bigger budgets. If you focus on upgrades that improve function, looks, and energy savings, you'll enjoy the place more. Plus, you might be able to sell it for more later. Essentially, the best renovations blend practicality and personal enjoyment, creating a comfortable and appealing space for current living and future buyers.