diff --git a/INSTALL.txt b/INSTALL.txt
index 14fcc87067..c06c57119d 100644
--- a/INSTALL.txt
+++ b/INSTALL.txt
@@ -64,8 +64,9 @@ uses Unix-style tools but generates a Windows-layout Racket build.
 
 In all cases, an in-place build includes (via links) a few packages
 that are in the "pkgs" directory. To get new versions of those
-packages, as well as the Racket core, then use `git pull`. To get
-new versions of any other package, use `raco pkg update`.
+packages, as well as the Racket core, then use `git pull'. Afterward,
+or to get new versions of any other package, use `make in-place'
+again, which includes a `raco pkg update' step.
 
 See "More Instructions: Building Racket" below for more information.
 
@@ -86,7 +87,7 @@ On Windows, Unix-style install is not supported.
 A Unix-style install leaves no reference to this source directory.
 
 To split the build and install steps of a Unix-style installation,
-supply `DESTDIR=<dest-dir>` with `make unix-style PREFIX=<dir>`, which
+supply `DESTDIR=<dest-dir>' with `make unix-style PREFIX=<dir>', which
 assembles the installation in "<dest-dir>". Then, copy the content of
 "<dest-dir>" to the target root.
 
@@ -120,9 +121,10 @@ To install a subset of the packages in "pkgs", supply `PKGS' value to
 
 links only the "gui-lib" and "readline-lib" packages and their
 dependencies. The default value of `PKGS' is "main-distribution
-main-distribution-test". If you run `make` a second time, all
-previously installed packages remain installed, while new packages are
-added. To uninstall previously selected package, use `raco pkg`.
+main-distribution-test". If you run `make' a second time, all
+previously installed packages remain installed and are updated, while
+new packages are added. To uninstall previously selected package, use
+`raco pkg remove'.
 
 Using `make' (or `make in-place') sets the installation's name to
 "development", unless the installation has been previously configured
diff --git a/Makefile b/Makefile
index 6b8706b838..a8507ba1a3 100644
--- a/Makefile
+++ b/Makefile
@@ -49,6 +49,9 @@ cpus-in-place:
 # Explicitly propagate variables for non-GNU `make's:
 LIBSETUP = -N raco -l- raco setup
 
+# Update before install to avoid needless work on the initial build,
+# and use `--no-setup` plus an explicit `raco setup` for the same reason.
+UPDATE_PKGS_ARGS = --all --auto --no-setup --scope installation
 INSTALL_PKGS_ARGS = $(JOB_OPTIONS) --no-setup --pkgs \
                     --skip-installed --scope installation --deps search-auto \
                     $(REQUIRED_PKGS) $(PKGS)
@@ -57,6 +60,7 @@ ALL_PLT_SETUP_OPTIONS = $(JOB_OPTIONS) $(PLT_SETUP_OPTIONS)
 plain-in-place:
 	$(MAKE) base
 	$(MAKE) pkgs-catalog
+	$(PLAIN_RACO) pkg update $(UPDATE_PKGS_ARGS)
 	$(PLAIN_RACO) pkg install $(INSTALL_PKGS_ARGS)
 	$(PLAIN_RACO) setup --only-foreign-libs $(ALL_PLT_SETUP_OPTIONS)
 	$(PLAIN_RACO) setup $(ALL_PLT_SETUP_OPTIONS)
@@ -64,6 +68,7 @@ plain-in-place:
 win32-in-place:
 	$(MAKE) win32-base
 	$(MAKE) win32-pkgs-catalog
+	$(WIN32_PLAIN_RACO) pkg update $(UPDATE_PKGS_ARGS)
 	$(WIN32_PLAIN_RACO) pkg install $(INSTALL_PKGS_ARGS)
 	$(WIN32_PLAIN_RACO) setup --only-foreign-libs $(ALL_PLT_SETUP_OPTIONS)
 	$(WIN32_PLAIN_RACO) setup $(ALL_PLT_SETUP_OPTIONS)