Significantly increase the value of your property before selling. Find out which renovation measures promise the highest returns and which pitfalls you should avoid to ensure you don't invest more than you get back.
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The topic briefly and concisely
Energy-efficient renovations can increase the property value by up to 49%, especially in older buildings.
Not all renovations are worthwhile; a cost-benefit analysis is crucial, as buyers often factor in a 10-30% discount for unrenovated properties.
Modern heating systems, new windows, insulation, and attractive bathrooms and kitchens are often the most value-enhancing measures.
You own a property and are planning to sell it? Then the inevitable question arises: Should I renovate beforehand? There is no one-size-fits-all answer, but data-driven analyses show clear trends. This article highlights which renovations are worthwhile before selling, how to weigh costs and benefits, and how to achieve the best possible price. We show you how targeted measures can significantly increase not only the value but also the attractiveness of your property to potential buyers.
Market Analysis: Why Renovations Affect the Selling Price
The condition of a property is a crucial factor for sales success. Current data shows that renovated single-family homes have seen an average price increase of 3.5 per cent over the past year. In contrast, the prices for unrenovated properties fell by 11.4 per cent. These figures highlight a clear trend: buyers prefer modernised properties. A cost-benefit analysis of renovation work is therefore essential. Investing in the right measures can make the difference. Bear in mind that first impressions count, and many buyers shy away from the effort of their own renovations. A well-presented, renovated property stands out positively in the market. This often leads to a quicker sales process and a better final price. The right strategy is crucial here.
Energy Efficiency: The Key to Higher Selling Prices
Energy efficiency class is no longer a minor aspect but a central sales argument. Properties with an energy efficiency class of A+ will achieve 40% higher prices on average in 2024 than comparable properties in class H. For comparison, in 2021, this difference was only 17 percent. An upgrade from efficiency class D/E to A/A+ costs an average of 700 euros per square metre. This investment is considered by buyers when determining the price. The legally required energy certificate lists all relevant data and is thus an important document in the sales process. Therefore, an energy-efficient renovation can significantly increase the value of your property and improve marketing opportunities. Find out more about how to modernise an old building for energy efficiency.
The following energy-saving measures are particularly effective:
Replacing the heating system: A modern heating system can save up to 40 percent on energy costs.
Insulating the façade: Significantly reduces heat loss.
Renewing windows: Modern triple-glazed windows significantly improve insulation values.
Roof insulation: Prevents energy loss through the roof, often one of the biggest weak spots.
Insulating the basement ceiling: An often underestimated measure that can save up to ten percent.
These measures not only improve the energy balance but also enhance living comfort—another advantage for buyers.
Cost-benefit analysis: Which renovations really pay off?
Not every renovation automatically leads to a proportionally higher sales price. It's crucial to weigh the costs of the measures against the potential added value. According to an analysis, the price increase for a renovated property can be around 412 euros per square metre (comparison energy efficiency class A vs. C). Unrenovated properties, on the other hand, often suffer a price reduction of 10–30 percent. Consider carefully which works will have the greatest effect. Smaller, cosmetic repairs and a fresh coat of paint can already work wonders and are relatively inexpensive. For larger measures such as a bathroom renovation or kitchen modernisation, you should appeal to the taste of a broad spectrum of buyers. An analysis of renovation potential by experts can provide clarity here. Sometimes it makes more sense to offer the property in a well-maintained but not fully renovated state if buyers already have their own renovation plans. Weigh up whether the investment justifies the effort and risk.
Strategic Renewal Points: Focus on Visible Improvements
Buyers often make emotional decisions, which is why visible improvements are particularly effective. Modernising the kitchen and bathroom can add great value. A modern bathroom can increase the sale value by 5-10%. The exterior should not be neglected either; a well-maintained garden and an appealing facade boost attractiveness. Consider home staging and renovations to present your property in the best possible light. Even minor refurbishment can significantly increase the value of detached houses built between 1979 and 1990. A fresh coat of paint on the walls costs just a few hundred euros but can make a room appear years younger. Replacing outdated light switches and sockets is another small measure with a big impact. These details signal to the buyer that the property has been well cared for.
Here are some areas that often offer a good return on investment:
Modernising the bathroom (new tiles, modern sanitary facilities).
Updating the kitchen (new worktops, modern appliances).
Renewing flooring (high-quality laminate, parquet).
Fresh paint for walls and ceilings.
Maintaining the exterior (garden, facade, paths).
Replacing outdated windows and doors.
These measures contribute to buyers feeling immediately at home and willing to pay a higher price.
Legal requirements and the energy performance certificate: What sellers need to know
When selling property in Germany, certain legal requirements must be followed. The Energy Saving Ordinance (EnEV), now part of the Building Energy Act (GEG), prescribes minimum standards for the energy quality of buildings. A valid energy certificate must be presented to the buyer during viewings and at the latest upon contract completion. This provides information on the energy demand or consumption of the property and can significantly influence the purchase decision. For properties built before 1977 without strict thermal insulation requirements, retrofits are often necessary. Violations of EnEV/GEG regulations can result in hefty fines. Inform yourself early on which measures are mandatory for your property to be optimally prepared when selling your home. The cost of an energy certificate is around 500 Euros. This investment is essential and provides transparency for the buyer. Professional advice can help meet all legal requirements.
Timing and Budget: Plan renovations smartly
The right timing and a clear budget are crucial for the success of your renovation projects. Do not start renovations without carefully calculating how much money you want and can invest. The work should not cost more than what can be recouped through a higher sale price. Allow sufficient time for the execution to avoid being under pressure to sell. Obtain several quotes from tradespeople to compare costs. 20 per cent of the labour costs for tradesperson services can often be deducted for tax purposes. This can ease your budget. Also consider which small renovations before selling your house you can carry out yourself to save costs. Detailed planning protects against unpleasant surprises and ensures that the investment is truly worthwhile. A neutral evaluation by Auctoa or a discussion with our Immo GPT can help you make the right decisions for your property and use your budget optimally.
welche-sanierungen-vor-dem-verkauf-lohnen
Which renovations are worthwhile before selling depends significantly on the property and the market situation. Energy refurbishments and visible modernisations in the kitchen and bathroom often pay off and can increase the sale price by up to 20 per cent or more. A careful cost-benefit analysis and compliance with legal requirements are essential. Not every expensive measure is sensible; sometimes smaller cosmetic repairs are sufficient. Seek professional advice to identify the most value-enhancing measures for your specific property. This way, you maximise your sales proceeds and find the right buyer more quickly. With the right strategy, your property will become a sought-after asset.
Additional useful links
Statistisches Bundesamt offers comprehensive information on construction prices and the real estate price index.
Statistisches Bundesamt provides detailed tables on house prices and building land.
KfW provides information on funding programmes for existing properties for private individuals in Germany.
KfW explains the options for energy-efficient refurbishment of existing properties.
dena (Deutsche Energie-Agentur) presents the Building Report 2025 with current insights into energy efficiency in the building sector.
IW Köln (Institut der deutschen Wirtschaft Köln) offers a dena analysis of office properties as a PDF document.
Deutsche Bundesbank introduces its indicator system for the residential real estate market.
FAQ
Do I need to renovate before selling the house?
Legally required are measures to comply with the Energy Saving Ordinance (EnEV/GEG) and the submission of a valid energy certificate. Further renovations are optional but can significantly improve the selling price and chances of sale.
What documents are important for the sale after a renovation?
In addition to the energy certificate, it's important to have invoices and proof of the refurbishment measures that have been carried out (particularly tradesmen's invoices for energy-related measures) as well as updated floor plans and building permits if applicable.
How do I find out which renovations are worthwhile for my property?
A professional property valuation and energy consultation can provide insights. Experts analyze the condition of your property, the local market, and identify the measures with the best cost-benefit ratio. Auctoa offers data-driven analyses for this purpose.
Is an expensive luxury renovation worthwhile before selling?
That depends on the property, the location, and the target audience. A luxury renovation is not always profitable if potential buyers have different ideas or if the general price level of the area does not justify it. A solid, modern finish is often more effective.
Can I deduct renovation costs from taxes if I sell afterwards?
Handwerkerleistungen für Erhaltungs- und Modernisierungsmaßnahmen können teilweise steuerlich geltend gemacht werden (e.g. 20% of labour costs). It is best to discuss this with your tax advisor to clarify the specific possibilities for your situation.
How long do typical renovation measures take before a sale?
The duration depends on the scope. A new coat of paint can be completed in a few days. A bathroom renovation takes about 2-3 weeks, while a heating system replacement can take a few days to a week. Extensive energy renovations can take several weeks to months.
