I live in a house from the 1960s that needs a lot of work. For instance, some of the paint is missing from the trim, the hardwood floors are all worn out, we still have the original basic light fixtures from the 60s, and the appliances are white and from the 90s. When I search online for expected returns on these updates, I often find that they give less than 100% return on investment. Does that mean if I update these things, I will end up losing money? Is that really how it works?
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I normally advise against renovating just to sell (except for items like paint). There is very nothing you can do to make more money from a sale than it costs you (see costvsvalue.com). Furthermore, I’ve seen buyers take out brand-new improvements because they wanted something else.
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Fixing up a house before selling can be worth it if the improvements boost the home’s value more than the costs. Cosmetic upgrades, like painting and landscaping, often offer good returns. Major renovations should be carefully considered. A well-presented home can attract more buyers and potentially higher offers, making it a smart investment.