SHOULD I RENOVATE BEFORE SELLING?
If you step back and give your home an honest look from a Buyer’s perspective and are not crazy about what you see, chances are, the Buyers won’t like it either. Perhaps the best thing you can do for the value of your home is to invest in some renovations before you expose your home to the open market. Perhaps once the renovations are done, you might realize that your current home is where you want to live. I would be happy to sit down with you and help you make that decision. Often what happens is that people buy a home and live in it happily for years, and even though the house is clean and in good repair, they have not done a lot to update the house. Sometimes there is little things that need to be fixed and they have gotten used to just dealing with them rather than spending the time and money to repair them. Often the best time to renovate is when you have lived in a property for a long time, as the relative value of comparable and updated homes in your neighbourhood have risen enough that it makes good financial sense to invest a substantial amount in upgrades.
In other situations, it does not make sense to invest thousands of dollars in renovations because you will not get back out of the sale of the house the amount that you put into it. When we sit down to discuss the whole topic of renovations, we will work through whether or not a specific renovation will garner enough increase in value to make it worth your while. Sometimes, it is best to target specific problem areas and do some very focused and limited work to best maximize your return on investment as you prepare you house for sale. Some renovation work, although expensive, add little or no value to the house. It may make the house more salable, but not increase its market value.
Consider this: according to a Canadian survey, the top three renovations that get you the most money are:
Bathrooms (75 to 100% return)
Kitchens (75 to 100% return)
Interior and exterior painting (50 to 100% return)
Even with these renovations, you may not get back 100% of dollars spent on the project in terms of increased property value. It may take time for market to catch up with the money you have spent on upgrades. If you are planning to stay a while in your home, this is fine, as you are getting enjoyment value out of the renovations.
Other renovations and their average rate of return (the value they add compared to what they cost) include:
Replacing roof shingles (50 to 80%)
Replacing the furnace and heating system (50 to 80%)
Renovating the basement (50 to 75%)
Adding a recreation room (50 to 75%)
Installing a fire place (50 to 75%)
Up-grading floors (50 to 75%)
Building a garage (50 to 75%)
Replacing windows and doors (50 to 75%)
Building a deck (50 to 75%)
Installing central air conditioning (25 to 75%)
Please note that the above figures are just a general guide. Anecdotally, I often find that “nuts and bolts” stuff like the roof, windows, heating and A/C, and the driveway will often make your home more salable, but may not add a lot to the dollar value of the sale. People are more inclined to take money off if your house needs a new roof, than to add it on if you have just replaced it. They expect a leak free roof. But all things being equal, they will more likely buy your home with a one year old roof than a similar home with a 15 year old roof, but they may not pay more money for it, or if they do, the amount will be marginal.
It is part of my role to provide you with concrete direction based on my experience. My job during our consultation (in addition to explaining the selling process, my marketing plan, legalities, and discussing your goals and plans) is to note all the things that make your home special and suggest areas it could be made better, and give you my professional opinion on which areas of improvement will have the most positive impact on value and salability. After meeting with you and touring your home, I will recommend a competitive price based on your home the way it is now and the potential value increase with improvements and/or renovations.
SERVICE | KNOWLEDGE | RESULTS
Thinking About Selling?
Is Now the Time to Sell?
The Buyer’s Perspective
De-Cluttering and Staging
Selling Your Home
The Importance of Pricing
Marketing Your Home
Home Selling Documents
The Deal Is Firm, Now What?
Your Lawyer’s Role
Getting Ready for the Buyer
After Closing Day
334 Wellington Rd. S
London, Ontario N6C 4P6