In this article, you’ll find a practical guide from Coldwell Banker México Real Estate for smart homeowners on how to increase your return on real estate investment.
Are you planning to sell your home and unsure whether you should invest in renovations?
Before listing your property, one of the most important decisions you can make is whether or not to make improvements. Some renovations can significantly increase the value of your home and help it sell faster in Mexico City… but others may be an unnecessary expense. Here we tell you exactly what to do—and how to do it right.
According to Coldwell Banker México Real Estate, to calculate the real value of your home you should consider a professional appraisal, compare prices in similar areas, and analyze current local market supply and demand. Find more information here.
Why do some homes sell faster and at better prices than others?
In a market as competitive as Mexico City, buyers are looking for properties that are move-in ready. Most don’t want to deal with renovations after purchasing. If your home looks well cared for, updated, and functional, it will not only attract more showings, but also better offers.
Fact: According to Coldwell Banker México, a well-presented property can increase its value by up to 15% and reduce its selling time by 40%.
Renovations that truly increase your home’s value in Mexico City
Below are the improvements that generate real return on investment when selling, especially in urban areas such as Benito Juárez, Coyoacán, Cuauhtémoc, or Álvaro Obregón.
1. Renovate the kitchen: the heart of the home
A modern, functional, and visually appealing kitchen can make all the difference.
- Replace worn cabinet doors
- Upgrade countertops to materials like granite or quartz
- Install modern faucets
- Add LED lighting under cabinets
Estimated ROI: Up to 80% of the amount invested
2. Updated bathrooms: cleanliness and functionality
The bathroom is another critical area. You don’t need a full remodel—details matter.
- Replace sinks and faucets
- Swap old shower enclosures for tempered glass
- Replace small mirrors with a large one with integrated lighting
- Improve ventilation and lighting
Estimated ROI: 70–80%, depending on materials and finishes
3. Well-maintained flooring: immediate visual impact
You never get a second chance at a first impression. Scratched, stained, or outdated floors can reduce the perceived value of the entire home.
- Laminate or porcelain flooring is an affordable and effective investment
- If you have hardwood floors, consider sanding and refinishing them
- Avoid carpets—they’re no longer popular due to maintenance concerns
Estimated ROI: Up to 60%, depending on the flooring type
4. Interior and exterior paint: dramatic change, low cost
Paint is the queen of smart renovations. It’s affordable, fast, and completely transforms how a home is perceived.
- Use neutral colors (white, light gray, sand tones)
- Make sure there’s no visible moisture damage
- Paint doors, frames, and baseboards if they’re worn
Estimated ROI: Up to 100% (yes, fully recoverable)
5. Lighting and ventilation: invisible, but noticeable
A well-lit and ventilated space feels larger, cleaner, and more modern.
- Replace bulbs with warm LED lights
- Install modern ceiling fixtures
- Clean or replace old blinds or curtains
- Make sure all windows open properly
Estimated ROI: Improves perception of space and livability
6. Functional garden or terrace: a bonus in Mexico City
Well-maintained outdoor spaces are highly valued, especially after the pandemic.
- Add low-maintenance plants
- Repair damaged floors or railings
- Add basic furniture (a table and chairs can work wonders)
Estimated ROI: Up to 50%, plus improved overall visual appeal
Did you know that renovations can increase a home’s value by up to 30%?
Learn more tips to help you sell your property more effectively.
Renovations that are NOT worth it when selling
Avoid unnecessary expenses that don’t add real value:
🚫 Highly personal renovations (jacuzzis, bold-colored walls)
🚫 Expensive automation systems (luxury smart-home features)
🚫 Partial renovations that highlight contrast with older areas
🚫 Full kitchen or bathroom replacements if existing ones are still functional
Coldwell Banker tip: Invest only if you’re sure the improvement will be a selling point—not a personal indulgence.
How much should you invest before selling?
An efficient budget to prepare your home should be 1% to 3% of the estimated selling price.
For example, if your home will sell for $4,000,000 MXN, ideally you should spend no more than $40,000 to $120,000 MXN on improvements.
Fact: According to the Lamudi 2024 Remodeling Value Report, investing in minor upgrades can increase the final sale price by 5% to 15%.
Where to invest based on property type?
| Property type | Priority improvement | Recommended investment |
|---|---|---|
| Apartment | Lighting + paint | Low |
| House with garden | Kitchen + outdoor areas | Medium |
| Older property | Bathrooms + flooring | High |
Real case: Strategic renovation in Del Valle neighborhood
A 3-bedroom home in Del Valle Norte with 1990s finishes was remodeled with an investment of $85,000 MXN:
- Full interior paint
- Partial kitchen renovation
- Shower enclosure replacement
- LED lighting
Result:
🔹 Sold in 47 days
🔹 Final price $300,000 MXN higher than similar unrenovated properties
🔹 120% ROI
Is it worth hiring a renovation expert?
Yes. An experienced real estate advisor, like those at Coldwell Banker México, can help you decide:
✅ What to remodel and what not to
✅ How much to invest based on your area
✅ How to improve presentation without overspending
You’ll also gain access to trusted vendors who deliver guaranteed improvements—no guesswork involved.
If you’re looking to rent out your home, you’ll need these strategies to increase your property’s rental value.
Conclusion: Your home is worth more when it looks move-in ready
A well-presented property sells faster, at a better price, and with fewer negotiations. You don’t need to invest millions—just make strategic decisions. If you’re selling in Mexico City, especially in competitive neighborhoods, small upgrades can give you a major advantage.
Not sure where to start?
Contact Coldwell Banker México and receive a full home valuation and a guide to preparing your property without overspending.
Sources with links:
- Coldwell Banker México – Official Blog
- Lamudi 2024 Remodeling Report
- Propiedades.com – Home Selling Guide
- El Economista – Tips to sell a home faster
