How Much Value Does a Renovation Really Add?

Every so often I get a call that reminds me just how complicated renovations can be.

Recently, a homeowner reached out with a simple question that never has a simple

answer: “If I renovate, how much money can I get back out of it?”

His situation wasn’t unique, he owns a property in North Bend and is unsure if he wants

to remodel it or sell and buy a newer home. Renovations seem straightforward until the

costs balloon, timelines shift, and suddenly you’re wondering whether the project will

actually pay you back or just give you a nicer kitchen.

Here in Greater Seattle area, the same question comes up all the time, and the truth is:

there’s no magic formula. But there are patterns, and there is smart strategy.

The Real Premium for Move-In Ready Homes

If you’ve been watching our local market over the past few years, you’ve probably

noticed something: buyers overwhelmingly prefer homes that are move-in ready.

In our region, the “convenience premium” is real. When buyers see a property that

needs work, a few things run through their minds:

• Construction costs feel unpredictable

• Materials and labor have become more expensive

• Permits, timelines, and contractor availability can be stressful

• Living through a remodel—or carrying the mortgage on a vacant home—adds

pressure

Because of that, updated homes typically sell faster and for more. It’s the same idea as

paying extra for the Costco rotisserie chicken instead of roasting your own—it’s

convenience, certainty, and time saved.

And that brings us to the core of the question: When does a renovation actually

create financial return?

Where Homeowners Often Miscalculate

One thing I share with clients all the time is this:

Putting $100,000 into a house does not automatically make it worth $100,000

more.

The market sets the ceiling—not the renovation budget.

Renovations create real value when they:

1. Bring a home up to what buyers expect at that price point

2. Fix functional issues

3. Modernize dated spaces that clearly limit buyer appeal

4. Align with what similar homes in your neighborhood have successfully sold for

To put it plainly: a smart renovation closes the value gap; an over-the-top

renovation widens it.

And the only way to know which side you're on is by studying the sales in your neighborhood.

How to Know if Your Renovation Will Pay Off

When clients ask me whether they should update their kitchen, finish a basement, or

invest in new bathrooms, here’s the framework I walk them through:

1. What do the the sales show?

Look at nearby homes that were renovated and sold recently.

Did sellers recover their renovation costs, or did they simply sell faster?

2. What’s the neighborhood ceiling?

Every community—from Lake Forest Park and Seattle to Kirkland and Marysville—has a price threshold buyers resist going above, no matter how nice the remodel.

3. Does the layout have “good bones”?

A home with a solid floorplan will always convert renovation dollars better than one with awkward flow.

4. Are you renovating for resale or lifestyle?

If you’re planning to stay 5–10 years, personal enjoyment matters more.

If you’re selling sooner, discipline matters more.

5. Can we keep the finishes timeless?

Buyers love clean, modern, Northwest-friendly finishes. Pinterest is full of great

inspiration—you don’t need a designer for every update.

A Quick Personal Note

In the past month alone, I’ve helped clients run the numbers on everything from basement ADU conversions to kitchen refreshes.

The Bottom Line

Renovating your home can absolutely create value—but only when the project aligns

with:

• Your goals

• Your neighborhood

• Your timeline

• Your budget

• Your local market expectations

  
  

If you’re curious whether a remodel is worth it—or if you’ve got a specific update in

mind—I’m happy to take a look and walk you through the sales, the ceiling, and the

potential upside.