Planning to make improvements on your house before selling?
All sellers struggle with the same question. Should you spend your money on structural repairs or cosmetic upgrades that make the property shine? Get it wrong and thousands of dollars could be flushed down the drain.
Here’s the problem…
Not all home improvements are created equal. Some provide MASSIVE returns when selling. Others aren’t worth one penny of your hard earned money.
Let’s take a closer look at where to spend your money.
What you’re going to learn:
- Cosmetic vs Structural Improvements Defined
- Where To Actually Spend Your Money
- Cosmetic Home Improvements That Actually Pay Off
- Structural Repairs You Can’t Ignore
- How To Determine What’s Worth Fixing
Cosmetic vs Structural Improvements Defined
Before you spend one penny it helps to understand what cosmetic vs structural means.
Cosmetic improvements are surface level changes that alter the look and feel of a home. Fresh paint, updated fixtures and hardware, landscaping – those are all cosmetic upgrades. They don’t fix underlying problems, they just make everything look pretty.
Structural improvements are large-scale renovations or repairs that actually fix something broken in the home. Anything from foundation work, roofing, plumbing and electrical repairs would be considered structural.
…and here’s where things get interesting.
Most homeowners assume structural repairs will ALWAYS provide a better return on investment. However, the numbers prove otherwise. Sometimes the best course of action is to sell your house as-is and forget renovating altogether. If you’re looking to sell quickly without the renovation stress you can sell your house to companies that buy houses for cash.
Although…if you do plan on renovating to boost your sale price then choosing the right renovations can mean everything.
Where To Actually Spend Your Money
If you want to know what home improvements actually add value. Look no further.
According to the 2025 Cost vs. Value Report exterior house renovations consistently outperformed full interior remodels when it comes to resale value. Replacement garage doors came out on top with a whopping 268% return on investment.
268% ROI. Yeah that’s a bit unexpected. A pretty cheap cosmetic upgrade beat out every structural renovation.
They also found steel entry door replacements came with a 127% return on cost. While a upscale kitchen remodel returned owners just 38% of what they spent.
Mind blown?
Since most homeowners aren’t dropping 65k on a kitchen there’s a good chance they’ll fall into the “minor home upgrades” category. When that’s the case cosmetic improvements hands down outperform structural work.
The key is knowing which cosmetic improvements to make.
Cosmetic Home Improvements That Actually Pay Off
Cheap cosmetic improvements are great, but not all are created equal. Here are the home improvements that nets you the biggest return.
Fresh Paint
Paint is one of the cheapest ways to freshen up a home before selling. Stick to neutral colors and watch how it transforms every room. Not only will it feel bigger and brighter, but neutral colors appeal to more buyers.
Curb Appeal
As the saying goes… You only get one chance to make a first impression. When driving up to your home, what do you see? Weed filled flower beds, dead bushes, and dingy paint? That’s exactly what your buyers see too.
Simple things like fresh mulch, green hedges and some colorful flowers can seriously add value to your home. In fact, increasing curb appeal can raise your homes value by 7%.
Kitchen & Bathrooms
This isn’t about ripping out your kitchen either. Small changes like new cabinet hardware, an easy backsplash and modern light fixtures go a long way.
Bathrooms work the same way. Swapping out an old vanity and fixture will make your bathroom look like new.
Flooring
Nobody wants to move into a house with stained carpet. If your home has old carpet it might be time to swap it out. Either with hardwood or luxury vinyl plank.
Structural Repairs You Can’t Ignore
Here’s the thing with structural repairs. Most of them… you can’t hide.
If your home has any of these issues be prepared to spend the money to fix them.
- Roof Leaks
- Foundation Problems
- Electrical Wiring Issues
- Major Plumbing
Why? Simple. Home inspections will find these and run. When your buyer sees those issues pop up on their inspection they’re going to panic. Worst case scenario? They walk. But most likely they will ask you to pay for repairs. Which will cost you more than if you just fixed them yourself.
However…this is where the difference between cosmetic vs. structural improvements comes into play.
Structural issues do NOT add value to your home. You’re simply fixing something to stop your home from losing value. A new roof won’t up your sale price, but a leaking roof WILL decrease it.
Understand the difference. Cosmetic improvements can increase what you sell your home for. Structural repairs ensure it doesn’t go down.
How To Decide What’s Worth Fixing
Still not sure where to spend your money? Start here.
- Fix Everything That Would Fail Inspection. If it’s going to fail an inspection you must fix it. No ifs ands or buts about it. Safety issues or items that violate building code need addressed one way or another.
- Spend Your Cosmetic Budget Wisely. Buyers remember three things about your house when they walk away. The kitchen, bathrooms and front entrance. Spend money there first.
- Don’t Go Luxurious. Yup, installing a pool is not a good financial decision when selling your home (unless you live in Vegas). High end kitchen remodels are another classic example of renovations that sellers overspend on.
- Don’t Renovate Beyond 30% of Your Homes Value. Believe it or not spending more than 30% of your homes value on total renovations is likely causing you to over-improve for the neighborhood. (Think high end kitchen in a 2 bedroom 1 bathroom bungalow)
Last but not least…
Your buyers expectations. A recent survey done by Bright MLS showed over 56% of buyers valued a home being move-in ready as their number one criteria. If they had to pick between size, location or move-in condition they chose the latter every time.
That means even small cosmetic improvements can make a huge impact on selling your home.
Final Thoughts
Deciding what improvements to make before selling is tough. But when you boil it down the decision making becomes much easier.
- Cosmetic improvements outperform structural repairs when it comes to ROI.
- Cosmetic improvements make your home feel move-in ready. And buyers love move-in ready homes.
- Structural repairs should ONLY be done to prevent loss in home value. Unless it will cause your home to fail inspection.
Simple enough right? Here’s your game plan when it comes to renovations:
- Fix anything that could fail inspection.
- Invest in cosmetic upgrades that buyers will see. (kitchens, baths & curb appeal)
- Don’t go crazy! Keep your renovation budget below 30% of your homes value.
Fix the things that need to be fixed. Then spend your money wisely on cosmetic improvements. That formula is what leads to sold signs everywhere.
