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Should you renovate before selling?: What improvements can increase a property's value by up to 15%? - Infobae
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www.infobae.com
March 19, 2025
Renovating the kitchen, bathroom, and living room before selling a home can raise its market value and speed up the transaction. This report details how much a remodel costs and what to prioritize to get the best return.
By Jose Luis Cieri
Whether it's to gain comfort or to increase the value of your home, a renovation always adds value to your property's value (Illustrative Image Infobae)
Carrying out renovations before selling a property can increase its value by 10% to 15%, according to a private report. Improving the kitchen, bathroom, and living room can have a positive impact without requiring major investments, as long as excessive expenses that aren't recovered in the final price are avoided.
In recent months, divisible mortgages , UVA mortgage loans ( more than 10 banks offer loans for construction, renovations, or expansions ), and money laundering have boosted real estate activity, according to analysis by Familia Bercomat, not only in sales and purchases, but also in pre-sale home renovations.
In this context, questions arise about the advisability of carrying out renovations before putting a property on the market.
“When considering a renovation before selling, it's essential to focus on areas that will increase value. The kitchen, bathroom, and living room are key spaces that, with the right improvements, can significantly boost a home's appeal. In the kitchen, updating cabinetry, countertops, and appliances modernizes the space. In the bathrooms, updating toilets, faucets, and wall tiles creates a feeling of freshness and cleanliness. The living room, with better lighting, flooring, and paint, becomes a more welcoming and functional space,” explained Fernando Pavón , Head of Commercial Architecture at Familia Bercomat.
Avoiding excessive investments in luxury materials is key. Imported marble countertops or high-end faucets may not be cost-effective, as their high cost may not be recovered in the selling price.
Instead, making accessible functional and aesthetic changes is often a better strategy.
Pavón warned: "It's common to make mistakes in remodeling projects that affect the return on investment. A lack of planning, inadequate budgeting, or low-quality materials can jeopardize the final result. To avoid these, it's key to define each stage with professional advice."
A very deteriorated room, for example, can raise the overall house's average with minimal investment. However, if low-quality materials are used, the buyer might decide to replace them, which would mean the investment wouldn't translate into a higher selling price.
Maximiliano Olmi , of Arquitecto X Hora, acknowledged that some improvements may not be cost-effective if they're not done wisely. "If discounted ceramic tiles or low-quality flooring are installed, the buyer often prefers to remove them and redo the work. In those cases, the investment is lost because the buyer doesn't pay," he noted.
He also explained that some superficial changes can generate distrust, such as painting over damp patches instead of addressing the underlying problem.
A worker connects the doors in the storage space. The kitchen, bathroom, and living room are the spaces that most impact the perceived value of a property. (Illustrative Image: Infobae)
According to Olmi, renovating a kitchen without replacing old plumbing can lead buyers to perceive the renovation as a mere cosmetic change. "If the pipes are still 70-year-old lead, the buyer knows they'll have problems at some point. In those cases, the investment isn't recouped, and it can even be a factor in negotiating against the buyer," he said.
Therefore, he recommended seeking advice before making improvements and prioritizing those that truly add value to the property.
Renovating the kitchen, bathroom, and living room before selling requires a minimum investment of $18 million, but loans of up to $40 million are available from businesses that sell products and materials, and up to $100 million from banks that offer mortgage or personal loans. These improvements can increase the property's value by 10% to 15%, without the need to replace plumbing.
Remodeling costs vary depending on the type of improvement. Updating a standard-sized kitchen can cost between $6 and $10 million, depending on the materials chosen. Bathrooms can cost between $4 and $6 million, including replacing faucets, tile, and toilets. Upgrading a living room with new paint, lighting, and flooring can cost between $2 and $3 million.
A 45-year-old three-bedroom apartment in Almagro sold 90 days ago for $90,000. It's now being offered for $107,000, after remodeling the bathrooms, kitchen, and balcony.
Finishes in a recently renovated bathroom (Illustrative Image Infobae)
A PH in Villa Pueyrredón, which sold six months ago for USD 102,000, has now appreciated 20% after bathroom and kitchen renovations and new flooring, and is being offered for USD 122,400.
Monitor Inmobiliario, a report by Daniel Bryn , predicts that the absorption of the property stock will take between 12 and 15 months, with a supply of 104,000 properties for sale, of which 68% are apartments ( the supply of used apartments has decreased ).
The reactivation of the market has reduced sales times, but the condition of each property is crucial for closing a deal quickly and under the best conditions.
Location and market trends also influence the effectiveness of a remodel. The value per square meter in Buenos Aires City is USD 2,370, 8.4% higher than in February 2023.
The neighborhoods with the greatest price growth are Núñez (+15.58%), Colegiales (+14.9%), and Villa Ortúzar (+14.3%). Villa Devoto (+12.3%), Saavedra (+10.94%), and Caballito (+9.9%) also saw significant increases.
Pavón concluded: “The key to deciding whether to renovate before selling lies in evaluating costs and benefits.”
www.buysellba.com
Source:
¿Conviene refaccionar antes de vender?: cúales son las mejoras que pueden aumentar el valor de una propiedad hasta 15%
Renovar la cocina, el baño y el living antes de vender una vivienda puede elevar su precio de mercado y acelerar la operación. Un informe detalla cuánto cuesta una remodelación y qué aspectos priorizar para obtener el mejor retorno
www.infobae.com
March 19, 2025
Renovating the kitchen, bathroom, and living room before selling a home can raise its market value and speed up the transaction. This report details how much a remodel costs and what to prioritize to get the best return.
By Jose Luis Cieri
Whether it's to gain comfort or to increase the value of your home, a renovation always adds value to your property's value (Illustrative Image Infobae)
Carrying out renovations before selling a property can increase its value by 10% to 15%, according to a private report. Improving the kitchen, bathroom, and living room can have a positive impact without requiring major investments, as long as excessive expenses that aren't recovered in the final price are avoided.
In recent months, divisible mortgages , UVA mortgage loans ( more than 10 banks offer loans for construction, renovations, or expansions ), and money laundering have boosted real estate activity, according to analysis by Familia Bercomat, not only in sales and purchases, but also in pre-sale home renovations.
In this context, questions arise about the advisability of carrying out renovations before putting a property on the market.
“When considering a renovation before selling, it's essential to focus on areas that will increase value. The kitchen, bathroom, and living room are key spaces that, with the right improvements, can significantly boost a home's appeal. In the kitchen, updating cabinetry, countertops, and appliances modernizes the space. In the bathrooms, updating toilets, faucets, and wall tiles creates a feeling of freshness and cleanliness. The living room, with better lighting, flooring, and paint, becomes a more welcoming and functional space,” explained Fernando Pavón , Head of Commercial Architecture at Familia Bercomat.
Avoiding excessive investments in luxury materials is key. Imported marble countertops or high-end faucets may not be cost-effective, as their high cost may not be recovered in the selling price.
Instead, making accessible functional and aesthetic changes is often a better strategy.
Pavón warned: "It's common to make mistakes in remodeling projects that affect the return on investment. A lack of planning, inadequate budgeting, or low-quality materials can jeopardize the final result. To avoid these, it's key to define each stage with professional advice."
What improvements to make
Not all renovations result in a real increase in property value. Investing in key improvements can increase the property's appeal and sales price, but it's essential to evaluate which changes are truly necessary and which may be unnecessary.A very deteriorated room, for example, can raise the overall house's average with minimal investment. However, if low-quality materials are used, the buyer might decide to replace them, which would mean the investment wouldn't translate into a higher selling price.
Maximiliano Olmi , of Arquitecto X Hora, acknowledged that some improvements may not be cost-effective if they're not done wisely. "If discounted ceramic tiles or low-quality flooring are installed, the buyer often prefers to remove them and redo the work. In those cases, the investment is lost because the buyer doesn't pay," he noted.
He also explained that some superficial changes can generate distrust, such as painting over damp patches instead of addressing the underlying problem.
A worker connects the doors in the storage space. The kitchen, bathroom, and living room are the spaces that most impact the perceived value of a property. (Illustrative Image: Infobae)
According to Olmi, renovating a kitchen without replacing old plumbing can lead buyers to perceive the renovation as a mere cosmetic change. "If the pipes are still 70-year-old lead, the buyer knows they'll have problems at some point. In those cases, the investment isn't recouped, and it can even be a factor in negotiating against the buyer," he said.
Therefore, he recommended seeking advice before making improvements and prioritizing those that truly add value to the property.
Examples and costs
The condition of a property can influence the final price and speed of sale, even when counteroffers in the real estate market typically range between 5% and 6%.Renovating the kitchen, bathroom, and living room before selling requires a minimum investment of $18 million, but loans of up to $40 million are available from businesses that sell products and materials, and up to $100 million from banks that offer mortgage or personal loans. These improvements can increase the property's value by 10% to 15%, without the need to replace plumbing.
Remodeling costs vary depending on the type of improvement. Updating a standard-sized kitchen can cost between $6 and $10 million, depending on the materials chosen. Bathrooms can cost between $4 and $6 million, including replacing faucets, tile, and toilets. Upgrading a living room with new paint, lighting, and flooring can cost between $2 and $3 million.
A 45-year-old three-bedroom apartment in Almagro sold 90 days ago for $90,000. It's now being offered for $107,000, after remodeling the bathrooms, kitchen, and balcony.
Finishes in a recently renovated bathroom (Illustrative Image Infobae)
A PH in Villa Pueyrredón, which sold six months ago for USD 102,000, has now appreciated 20% after bathroom and kitchen renovations and new flooring, and is being offered for USD 122,400.
Reconfiguration
The real estate market is undergoing a reconfiguration in 2024, driven by new credit and tax conditions.Monitor Inmobiliario, a report by Daniel Bryn , predicts that the absorption of the property stock will take between 12 and 15 months, with a supply of 104,000 properties for sale, of which 68% are apartments ( the supply of used apartments has decreased ).
The reactivation of the market has reduced sales times, but the condition of each property is crucial for closing a deal quickly and under the best conditions.
Location and market trends also influence the effectiveness of a remodel. The value per square meter in Buenos Aires City is USD 2,370, 8.4% higher than in February 2023.
The neighborhoods with the greatest price growth are Núñez (+15.58%), Colegiales (+14.9%), and Villa Ortúzar (+14.3%). Villa Devoto (+12.3%), Saavedra (+10.94%), and Caballito (+9.9%) also saw significant increases.
Pavón concluded: “The key to deciding whether to renovate before selling lies in evaluating costs and benefits.”
www.buysellba.com
