The U.S. remodeling market has experienced unprecedented growth, surpassing $600 billion in the post-pandemic era, and remains a remarkable 50% above pre-pandemic levels despite recent signs of slowing down. According to the Harvard Joint Center for Housing Studies’ new report, “Improving America’s Housing 2025,” the remarkable strength of the remodeling market can be attributed to the aging of homes and households, as well as record-breaking property values.
Renovating a home in Manhattan can be daunting. The city’s unique challenges, such as strict building codes, limited space and high costs, make the process complex. In 2025, it can be tempting to renovate before selling to maximize your home’s value. However, it’s essential to weigh the pros and cons before deciding.
The benefits of renovating before selling
Renovating your home before selling it in New York City can be a strategic move. Here are some key benefits:
- Increased property value: Renovations, especially in key areas like the kitchen and bathroom, can significantly boost your home’s market value.
- Attracting more buyers: A renovated home is more likely to attract a larger pool of buyers who are looking for a property that requires minimal work.
- Faster sale: Homes that are in good condition and aesthetically pleasing tend to sell faster, reducing the time your property stays on the market.
- Improved first impressions: Curb appeal is a thing, even in Manhattan. A strong first impression means your home stands out online and in person.
Focusing on strategic and thoughtful improvements can make your home more appealing and competitive in the market.
Drawbacks of renovating before selling
While there are benefits to renovating, there are also significant drawbacks to consider:
- High costs: Renovations can be expensive. While it’s likely you’ll recoup the costs when you sell, there’s no guarantee (here’s where you need to be strategic).
- Market preferences: Buyers may not like your renovation choices and might prefer to renovate the home themselves, leading to wasted effort and money.
- Time-consuming: Even with professionals, renovations can take time, potentially delaying your sale.
- Potential for disputes: Renovations can lead to disputes with contractors or building management, adding stress to the process.
- Disruption: Unless you move to your next place, you will have to live in a construction zone, which can compound the stress of selling.
While renovating can make your home more attractive, some will see it as not worth the money and aggravation.
Legal help will be useful
Regardless of your decision, an experienced real estate attorney can be invaluable. They can help draft and review contracts with contractors to ensure your interests are protected. They can handle the paperwork involving the sale. If disputes arise with contractors or building management, an attorney can represent you and help resolve issues efficiently.