“Do I Need to Renovate to Sell My Home And Be Debt-Free to Buy One?

Should You Upgrade Everything Before You Sell — And Do You Have to Pay Off All Your Debt Before Buying?

When it comes to real estate, two of the biggest questions I hear are:

1️⃣ “Should I upgrade everything before I sell my home?”2️⃣ “Do I need to pay off all my debt before I can buy?”

Both are great questions — and both come with a little more nuance than a simple yes or no. Let’s break them down in a way that helps you feel confident, prepared, and not overwhelmed.

Should I Renovate My House Before Selling?

My honest answer? Usually, no.

One of the biggest misconceptions is that you need to totally remodel your home to attract buyers — new flooring, a brand-new kitchen, updated bathrooms, expensive tile, all of it.

But here’s the reality:➡️ You’re preparing the home for someone else’s vision, not yours.

Imagine spending thousands putting in a bright white kitchen, fresh vinyl flooring, and brushed nickel fixtures… only for the buyers to move in and immediately replace it with dark blue cabinets, gold hardware, and real hardwood.

That’s money, time, and emotional energy you’ll never get back.

The “Fresh, Not Full Remodel” Rule

Rather than major renovations, focus on updates that help buyers feel like the home has been loved and maintained.

Here’s what nearly always pays off:

✔️ Fresh, neutral paint✔️ Steam-cleaned carpets or rugs✔️ A spotless, deep-cleaned kitchen and bathrooms✔️ Fixing squeaky doors, chipped trim, or loose knobs✔️ A tidy porch, swept driveway, and trimmed landscaping

These changes don’t force your style on the next owners — they simply help them imagine their style in the home.

A clean, well-maintained home often sells faster (and for more!) than a remodeled one that still doesn’t match the buyer’s taste.

When Do Bigger Updates Make Sense?

Sometimes—depending on your neighborhood, price point, and market—larger updates like a roof replacement, updated HVAC, or minor kitchen refresh may add value.

But before investing in anything big, it’s always smart to talk to a professional (that’s me) who can help you decide what’s actually worth it.

Now Let’s Talk About the Buyer Side:

❓ Do I Need to Pay Off All My Debt Before I Can Buy a Home?

This one surprises a lot of people — but you do NOT have to be debt-free to buy a house.

Most buyers have some kind of debt — car loans, student loans, even credit cards. Having debt isn’t the issue — it’s about how much of your income goes toward paying it.

That’s what lenders look at.

The Number That Actually Matters:

Debt-to-Income Ratio (DTI)

This is just a fancy way of measuring how much debt you pay monthly vs. how much money you make.

Most loan programs want your total DTI to be 43% or lower (including your future house payment).

So even if you have student loans or a car payment — as long as your monthly payments are manageable and your income supports it — you can still absolutely qualify.

So… Should I Pay Off My Debt First?

Here’s a quick guide:

Debt Type	Should You Pay It Off First?
Maxed-out or high-interest credit cards	Yes — paying these down can help your score
Small, manageable credit card balances	Reduce if you can, but not required
Student loans	Usually okay to keep — lenders see these all the time
Car loan	Only worth paying off if it’s a large monthly payment hurting your DTI
Personal/medical loans	Depends on the monthly payment size

The goal isn’t to be debt-free — the goal is to be debt-stable.Comfortable, confident, and still moving forward toward homeownership.

Here’s a Great Place to Be When You’re Thinking About Buying:

✔️ DTI at or below 43%✔️ 580+ credit score (640+ is even better)✔️ Some money set aside for savings and closing costs✔️ Debt that’s manageable — not stressful.

The Best Next Step: Get a Quick Pre-Approval

Before paying things off just because you think you should, talk to a lender. Sometimes keeping a long-standing loan helps your credit history. Sometimes paying off a loan doesn’t help you qualify at all. That’s why a quick pre-approval (even if you’re months away from buying) is so helpful — it gives you a personalized plan.

Final Thoughts

You don’t need to remodel your whole house to sell it. You don’t need to be debt-free to buy one. You just need good information, smart strategy, and someone to guide you.

If you’re thinking about selling, buying — or both — I’d love to help you figure out exactly where you stand and what makes the most financial sense (without wasting a dollar).

📲 Text or call me anytime for real, honest guidance — no pressure, just help.

Bethany Butler-Bos, REALTOR®

Bricktown ICT Realty

781-864-4751