Renovation for sale is never a good thing--trust me. Even if the reason for the move is something happy--rather than in the event of divorce, separation, or death--this is never a happy process.

Why? Because, like a new automobile which loses value the instant you drive it off the lot, the same thing applies to home improvements.  

But what about house value increasing? Yes, your entire house may increase in value (or decrease, too, let's not forget), but you need to look at the raw value of the individual improvement.

In any case, you really want to minimize the cost you put into these improvements. But you already know that or you wouldn't be here already!

Tip #1: Is this an Aesthetic or Functional Improvement?

Learn to separate the two before you even consider calling up contractors for estimates. An aesthetic home improvement is more like "eye candy" and it serves to attract the attention of potential buyers. A functional improvement is one that the home inspector will catch. Got a flooded basement? Got asbestos in the attic? The inspector will catch this, and you may want to consider taking care of it ahead of time.

Tip #2: Prioritize Home Improvements that You Can Do Yourself

Why pay a contractor if you can do it yourself? True, some renovations are difficult, if not impossible, for the average homeowner to do (roofing, windows, etc.). But you can paint, lay vinyl tile, and do basic electrical repairs.

Tip #3: Use "Builder Grade" Unless Inappropriate for House Style

The term "builder grade" refers to basic, low-cost building materials that contractors often use, unless higher grade materials are specified.

Unless these materials are totally inappropriate for your house style, use them.

Tip #4: Not Everything Has the Same Resale Value

Yes, that word "resale" applies to you, homeowner. Home improvement projects come with certain, often shifting resale values. For example, adding a sunroom has very low resale value and is not at all a wise renovation for sale.

Tip #5: How Far Can You Compromise on Quality?

Let's get this out of the way first: I am not advising you to perform any renovations for sale that compromise safety. Ethically, I am not even advising you to make home improvements that, if not unsafe, will make your buyers miserable down the road. I am not advising anything.

What I am saying is look at the issue of quality very carefully before you rush out and lay down $235/square foot slab Italian granite for this house you intend to sell in a few months. How far can you push the quality envelope? Certainly, there are some houses where nothing but $235/sq. ft. granite is appropriate. But that does not apply to most cases.

Laminate flooring is a good example. Laminate flooring looks great and will nearly always be less expensive than installing solid hardwood flooring. Can you get by with laminate?