How to Renovate Your House Before Sale

Whatever the area of the house, keep these rules of "renovating before sale" in mind:

1. Do Not Spend More Than You Can Recoup - Why spend $4,000 on new flooring if the resale value is less than that?
2. Never Spend More Than Your Profit Potential - This rule is more to the point. Some home sellers consider it a success to spend $7,500 on a bathroom remodel if they recoup $7,500 from the sale. Think about it, though: you've lost out. All of that time, pain, dust, effort, forgotten costs (faxes, time spent on the phone with the contractor and leaving work early, cutting certified checks, etc.)? Why?
3. Kitchen and Bathrooms, Remodel Priority #1 - Any big expenses should go into the kitchen and bathrooms over other rooms.
4. Limit Hard Costs - Laying new solid hardwood at $19.99 per square foot is a hard cost, very hard. Borrowing a orbital floor sander and sanding your floors is a soft cost.
5. Refurbish Rather Than Replace - Like the previous cardinal rule, don't leave your home buyer with any actual materials, if you can avoid it. Why hand over 1,200 square feet of Brazilian Cherry when you can merely refurbish your existing floors?
6. Appearance, Not Function - Sad to say, but it's better to put that $800 into paint or flooring, rather than a new water heater. As long as the water heater is functional, keep it. A new water heater will not impress buyers. But what if the home inspector comes back and says, "Water heater is no good; recommend replacement"? No big deal. You'll have ample time to replace or knock off an equivalent amount from the sale price. But appearance is something that is not negotiable, and in fact is something that may only register with home buyers on a sub-conscious level.
7. Paint Works Wonders - New paint, especially well-chosen and contemporary hues, will transform a house. Be careful of deep shades.