Why renovate before selling home?

[Daniel Koenig]

I work in renovation sales: primarily kitchen and bathroom renovations, so I meet with many individuals who are looking to put their home up for sale in the near future.

From my understanding, there is no such thing as a 100% ROI for remodeling. If a client purchases an entire kitchen remodel for $25,000, it does NOT increase the value of their home $25,000. Correct me if I'm wrong.

I also work with many individuals who just bought a house and don't like the renovation the previous owner made.

In other words, as a hypothetical, The Andersons put $25,000 into a kitchen renovation and sell their home to The Smiths.  The Smiths purchase the house and then upgrade their countertops for $10,000.  I see this situation all the time.  The Andersons spent money to sell a home to a buyer who will spend money on the same purchase.

Wouldn't sellers and buyers alike be better off by renovating AFTER homes are sold?  

This inefficiency I observe makes me want to get into the real estate agency business and specialize in purchasing "as-is" homes, and remodeling/renovating AFTER the new owners own the home and can choose what THEY want for THEIR new home.  

[Russell Brazil]

Some locations you might lose money by renovating. Other locations might break even and others might make a huge profit. If it wasnt possible to have more than 100% return on what you put in, then flipping couldnt exist.