It comes down to the circumstances of the seller, every time. What is the seller's basis in the home? If they've owned it a long time, have good equity and not a lot of debt, that is one factor to the plus side. If they have access to professional construction people through their Realtor, then yes, this is another positive factor. Would the home sell in its present condition and obtain a reasonable market sale or languish on the market? By adding sensitive updates to important rooms, would the home be swept off the market at a good (better) value?
If the home can be brought up to date without undue time or stress on the part of the seller, then we may have a project forming. The other piece though, is how are they going to pay for it? I don't recommend going into debt to pay for upgrades unless the seller is experienced in this arena. If they have the funds on hand, and all other factors stack up positive, then get some bids (three is good) and look at material costs that are recommended. Be sure to make a budget and do your best to stick to it. These projects have a tendency to creep and where do you draw the line. Be well thought out and only go as far as you planned.
My seller just completed the home's updates after all factors said GO! We are listing the home this weekend, and it looks great!
New kitchen, bath, refinished hardwoods, new wiring, new plumbing. Repairs from the pre-inspection are completed. We have a great listing to bring to market now. Watch for it here!