One of the biggest questions homeowners have before selling a home is: Should I renovate before I sell? Done correctly, home renovations can help your house sell more quickly, and potentially even bring in more of a profit. But if a renovation is done haphazardly and without much planning or forethought, it could cost the seller a bundle of money and even decrease the value of the house.

Home Renovations Can Help Move a House

Most sellers break even–at best–when they renovate parts of their homes before selling them. If you want to make a profit, a renovation isn’t the best way to do it. But a renovation does help a house sell more quickly. A recently redone kitchen with new cabinets, for example, will attract many more buyers than a run-down, outdated kitchen.

Home Renovation Considerations

Take a good, hard look at your available time and finances. If either is tight, then a renovation isn’t the best idea–just sell the house “as is” and let the buyer worry about fixing it up. But if a few renovations would make your house more marketable and you have the budget to tackle the project, then go for it. This is especially true if the other homes in your neighborhood have been renovated recently. Your house will fare better on the market if it’s up to par with the rest of the neighborhood.

Home Renovations by Room

If you choose to renovate, the two rooms that have the biggest cost benefit are the kitchen and the bathrooms. Buyers love to see new bathrooms and kitchens, and you’ll get a much better response by spending money here than you would in any other room. Aim for modern touches with neutral colors with your renovations. Home sales depend on buyer appeal, and hot-pink walls in the bathroom certainly won’t appeal to everyone.

In the kitchen, popular renovations include the cabinets, countertops (granite countertops are particularly appealing to buyers) and flooring. You may wish to replace outdated appliances like the oven, dishwasher or refrigerator.

For the bathroom, renovation projects that may be lucrative include an upgraded bathtub or shower, new tile on the floors, or new mirrors and vanities. Pedestal sinks are classy and can make a big difference in a small bathroom.

No matter what renovations you make, make sure your house stays consistent in value with the other homes in your neighborhood. Houses that out-value the rest of the neighborhood typically don’t sell well, so sellers could be shooting themselves in the foot by making a lot of expensive renovations that set the house apart from neighboring homes.