Whether you’re thinking of selling in the next six months or a few years down the road, remodeling with ROI in mind is a smart move. Your home is a huge financial investment, and any money you put toward it should not only increase your enjoyment of the home now but also add value that you’ll recoup when you sell.

According to recent reports, sellers make an average of 2.2 renovations or improvements before selling. And 79% of sellers make at least one improvement, which means that only 21% list their home as-is.

How to Properly Budget for Renovations to Increase Home Value

Our Laguna Niguel Real Estate Agents say that prior to researching renovations that might add the most amount of value to your home, you need to choose how much you can afford to spend and how you’ll pay for the renovations.

All-Cash Home Improvements

Our Laguna Niguel Realtors say if you can afford it, paying cash is typically your best solution, as you’ll avoid debt and interest payments. But the drawback is that the money you spend will be tied up until you sell the home.

Using Financing For Renovations

A handful of homeowners opt to finance their remodeling project — more then ever if they’re planning on selling shortly after finishing the project — as they’ll be able to pay the loan back in full after closing.

There are multiple ways to pay for your project, but due take into consideration that a majority of lenders require that your remaining mortgage balance plus the amount you borrow total less than 90% of your home’s pre-improvement value. 

Here are two known financing options:


A majority of Laguna Niguel Realtors will tell you that similar to your first mortgage, a second mortgage gives you an opportunity to borrow a fixed amount of cash, in a large amount, with a fixed interest rate.


A HELOC operates similar to a revolving credit line, secured by the equity in your home. Generally, you borrow what you need as you go, but you’re borrowing with a variable interest rate, so costs can go up (or down) over time.

Best Low-Cost Home Improvements For Resale

You don’t have to spend a decent amount of money to make your home more appealing to buyers. Our Laguna Niguel Real Estate Agents say you should thing about these lower-cost projects that still offer a lot of bang for your buck.

New Interior Paint

Generally speaking, a coat of paint makes your home feel fresh and updated. 

  • Our Laguna Niguel Realtors suggest you stick to neutrals — gray, beige, or greige walls and white trim.
  • Homes with light blue or blue-gray bathrooms sell for a $2,786 premium.

Curb Appeal

The very first thing buyers will see, both online and in person, is your home’s exterior. Whether they’re viewing your exterior photo in an online listing, driving by, or attending a private tour or open house, it’s crucial that your home makes an exceptional first impression.

  • Painting your front door can have a big impact.
  • 29% of sellers make the landscape of the property look more appealing, as part of their pre-sale prep.

Smart Home Technology

A recent report discovered that 42% of Generation Z buyers and 37% of millennials rate smart home technology as highly important in their home search.

  • Smart thermostats are a popular and relatively easy addition.
  • Buyers also look for things like voice-assistant-controlled light bulbs. They can help your home compete against new construction homes, which often come packed with smart home features.

New Lighting

Good lighting is crucial to showcasing your home’s features, especially if your home doesn’t have a lot of natural light. Our Laguna Niguel Realtors say that upgrading your lighting is easy and inexpensive, and it can make even small rooms feel larger. 

Our Laguna Niguel Real Estate Agents suggest that you consider these steps:

  • Add new pendants in the kitchen.
  • Lively up the decor with window treatments.