I would love to see industry averages on if pre-sale renovations make any sense at all. Considering the outright financial expenses, possible financing, potentially weeks/months of organizing contractors, dealing with overages, delaying the house sale, yada yada.
If the work takes more than a week (so not just appliances, painting, etc) is there generally a positive expected return?
They must surely make sense, given that there are people who "flip" houses (buy a house, do a quick paint/bathrooms/kitchen renovation on it and sell it for a nice markup).
The average homeowner is unlikely to have any of those relationships or knowledge, so there are a lot more things that could go wrong that delay the project or cause costs to balloon. Maybe a lot of people mistakenly believe that renovating the kitchen for $20k will add $40k value to the house, but in practice, the project will cost $34k, take five weeks, and ultimately only raises the final sale price to $35k.
If I were to spend $300k renovating my home, the value would increase by approximately $100k.
The only real increase in home value comes from additions which add bedrooms. If I were to spend money converting an attic, a basement, or adding an add-on, I'd probably come out even at the sale.
And renovations are quickly depreciating assets. I'm much better off doing that right before a sale. A new dishwasher will be an old dishwasher before too long.