Is It Worth Renovating Before Selling?
The decision to renovate before selling should be driven by numbers, not intuition. We analyse when it pays off and when it is throwing money away.
It is the question every homeowner asks before putting their property on the market: should I renovate to achieve a better price, or sell as is? The answer is neither a blanket yes nor no — it depends on the numbers.
The general rule: in luxury, it almost never pays off
In Madrid’s premium property segment (above €800,000), renovating before sale rarely makes economic sense. The reason is straightforward: the high-end buyer wants to renovate to their own taste.
A buyer paying €1,200,000 for a flat in Recoletos has a very clear idea of the floors they want, the kitchen they want, the bathrooms they want. They will not pay a premium for a renovation you chose and that they are going to strip out to do their own.
What they do value is a property that is clean, well-maintained and with all systems in working order. The difference between “well-maintained” and “renovated” is critical.
What is worth fixing
There are minor interventions that do improve the sale price (or prevent it from dropping):
Paint. A fresh coat of white or neutral paint throughout the property costs between €1,500 and €4,000 depending on size. It is the investment with the best return: it conveys cleanliness, spaciousness and good upkeep. It always pays off.
Bathrooms and kitchen: repairs, not renovations. Replace dated taps, swap out blackened silicone joints, fix broken tiles, deep clean. Cost: €500–1,500. A kitchen that works well and is clean does not need to be new to sell well.
Electrical and plumbing systems. If there are genuine problems (sockets that do not work, leaking pipes, an obsolete electrical panel), fix them. Not because it raises the price, but because a negative technical report can sink a transaction.
Doors and handles. Replacing rusted handles or doors that do not close properly is inexpensive (€200–800) and improves the overall perception of care.
Professional cleaning. A thorough clean of the property — windows, blinds, floors, bathrooms, kitchen — before the first viewings. Cost: €200–500. Impact: disproportionately positive.
What does not pay off
Full renovation. A complete renovation of a 150 m² flat in a prime Madrid area costs between €80,000 and €200,000 depending on the specification. It is virtually impossible to recoup that investment in the sale price. The premium buyer does not pay extra for your renovation — they pay for square metres, location and potential.
New kitchen. A quality kitchen costs between €15,000 and €40,000. Unless the current kitchen is in a state of ruin, it does not pay off. The buyer will want to choose their own.
New bathrooms. Similar to the kitchen. A clean, functional bathroom is sufficient. A new bathroom finished with materials the buyer would not have chosen is money wasted.
Floors. Replacing floors costs between €40–100/m² (materials plus installation). In a 200 m² flat, that is €8,000–20,000. If the existing floors are good quality (hardwood, marble), a professional sanding and polishing (€1,000–2,500) is infinitely more cost-effective.
The calculation you should make
Before renovating, carry out this exercise:
- Obtain a professional valuation of the property in its current state
- Get a quote for the renovation you are considering
- Estimate how much the price would rise with the renovation completed (your real estate adviser can guide you)
- Calculate the ROI: if the renovation costs €30,000 and the price rises by €15,000, you are losing €15,000
In the majority of cases in the premium segment, the ROI on significant renovations is negative. The exceptions are:
- Properties in very poor condition where renovation is necessary for the buyer to visualise the potential
- Areas where the supply of renovated properties far exceeds that of unrenovated ones (creating a disproportionate discount)
- Properties where a minor intervention resolves a serious perception problem (e.g., a dark flat that gains significant light through a layout change)
The special case of layout reconfiguration
There is one intervention that can pay off in older properties: removing partition walls to create open-plan spaces. In older Madrid flats with long corridors and small rooms, opening the kitchen to the living room or merging rooms can completely transform the perception of the property.
The cost is usually moderate (€3,000–8,000 if no services need relocating) and the visual impact is high. But you must first verify that the walls are not load-bearing — in buildings predating 1960, many of them are.
Summary
| Intervention | Estimated cost | Worth it? |
|---|---|---|
| Paint | €1,500–4,000 | Always |
| Professional cleaning | €200–500 | Always |
| Minor repairs (taps, handles) | €500–1,500 | Always |
| Floor sanding and polishing | €1,000–2,500 | Almost always |
| Partition wall reconfiguration | €3,000–8,000 | Sometimes |
| New kitchen | €15,000–40,000 | Rarely |
| New bathrooms | €8,000–20,000 | Rarely |
| Full renovation | €80,000–200,000 | Almost never |
The smart decision is to invest the bare minimum needed to present the property in the best possible condition — and leave the rest to the buyer’s own judgement (and budget).
Not sure whether to renovate before selling? Request a valuation and we will give you a recommendation based on data, not guesswork.
Related articles
How to Choose a Real Estate Agent to Sell a Luxury Property
Not all real estate agents operate the same way in the premium segment. What to ask, what to demand, and what red flags to spot before signing.
Home Staging for Luxury Properties: What Works and What Doesn't
Home staging in the premium segment plays by different rules. What to prepare, what to leave alone, and how it affects the final sale price.