After picture homes are usually easier to sell and a lot of agents push owners to do a lot before marketing the home. The downside of big updates is you need to recover the cost of those updates and more. If those improvements only increase your sale price by a cost less than the improvements cost, you not only lost money but may have lost the opportunity to do other things with those same funds.
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Thank you for such a good question. The best way to determine, for you, on how much your home should be updated is to get a hold of your agent and view homes that you will be directly competing for buyers with and look at homes that have sold. Look for what amenitis they had, how long it took to sell the home and how much their home sold for. Each area will be a little different and at what price point your home is in is important too. Also remember that you may not recoup your total cost of the updates and upgrades but they will help in getting the home sold faster for more money in the long run.
All the best,