This is a question which I hear a lot during listing presentations. Why update when the market is hot?
One issue. The market is hot for homes that are updated and ready to move in - what we call turn key properties. With labor and material shortages, no buyer wants to buy now and be at the mercy of contractors and raw material delays before they can move in. I can give you a list of homes that need work that are not selling even today.
Buyers today are paying extra - not to have to deal with the headaches and delays in dealing with contractors. They are paying premiums to have the seller deal with these issues. Buyers want to buy and move right in at the end of escrow. They don't want strangers and sub-contactors running around inside their home during a pandemic.
See if they get returns on their investment when they do the upgrades before putting the properties on market.