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The short answer to “should you renovate or not” if you’re thinking of selling your home is: maybe. Of course, you want to do whatever will benefit you most money-wise. Here is a list of things to consider before making a decision.

First examine the existing state of your home. Does it have highly outdated plumbing and electrical systems? Is it simply out of style? Or is it a relatively new home in average or better condition, or a home that was updated prior to your purchasing it?

If your home needs major work that would put potential buyers off, do consider renovating if it’s something like the electrical or plumbing system. Have a home inspector examine your house to determine what might be required in order for a buyer to receive a loan approval. If you know you’re going to have to do something anyway, you’re better off doing it upfront and getting the full value of your home. Otherwise potential buyers will want deep discounts, probably more than the upgrades would cost.

If your home is just outdated, some cosmetic work could be done to make it appeal to a wider range of the market. Not everyone wants to live in a retro-70’s or 50’s house, nor is everyone able to look past such things as multi-colored shag carpet or speckled blue formica countertops. If this describes your house, it could be an excellent idea to make cosmetic changes. Replace the carpeting and countertops, but don’t redo the entire kitchen. A new counter might cost you anywhere from $200 to $2000, but a kitchen renovation could be in the neighborhood of $15,000 to $65,000. You’re likely to recoup the cost of the new counter, but not of a major renovation.

If your home is in average or better condition and there’s nothing structurally wrong with it, chances are that you won’t benefit by renovating it before selling. In fact, if you do go ahead and renovate you may find yourself in the uncomfortable position of listening to potential buyers talk about tearing out that “awful” thing you just spent thousands having installed — thousands that you probably aren’t going to get back in the sales price. In other words, your tastes may not match the buyer’s, and so there’s no point in wasting your money. A coat of fresh paint and a comprehensive cleaning and de-cluttering are probably all you really need.

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