When our clients are getting ready to sell their home, we are often asked: “Is it worth renovating my home so that I can sell it for more money?” And the answer is, “That depends”. Here are some tips for getting the best return on investment (ROI) from your renovations.
First, before you start knocking down walls and pulling out cabinets, Talk To Your Realtor! We have experience in your particular neighbourhood: what comparable homes have sold for, what their features were, and how your home stacks up against the competition. We can help determine if the cost of renovations will bring a substantially higher price when your home is sold, or if it’s better to just list your home as is.
Sometimes it’s just not worth the expenditure and you won’t see a return by the time you list the house. The $50K basement remodel you want to install won’t necessarily mean your listing price can jump up by $50K+. We don’t want you setting yourself up for disappointment. So give us a call – we are happy to look into it for you!
If renovations ARE in your future, then it’s important to spend your money wisely.
– Consider doing some (or all) of the work yourself. If you hire out the work to a contractor, labour costs can be as much as the materials. So spend wisely.
– Remember the finishes and colours you choose need to appeal to the widest audience possible. You’re not renovating this home for yourself to enjoy — you want it to WOW as many other people as possible. Stick to neutrals and finishes that are easily adaptable to most people’s tastes.
So where should you focus your attention? What areas of the home will bring you the best return on investment?
Top 4 Areas Of The Home To Renovate for Best Return On Investment
1. The Kitchen. Keep it classic and neutral. You don’t want to spend a bundle on the latest trends when remodelling as buyers may shy away from gimmicks that will look dated over time. And remember, you may not have to renovate EVERYTHING in the kitchen! If the cupboards are in good shape, perhaps a coat of paint will bring them up to date.
2. The Bathrooms. This is another high-traffic area that buyers like to see isn’t run down or dated. Updating the fixtures or cabinets can give the room an entirely different look. If the room isn’t laid out well, you may consider the larger job of moving plumbing or opening up a wall to make the room more spacious.
3. Income Producing Suites. Is there a shortage of rentals in your area? Are students looking for a smaller space to rent in your neighbourhood? You may consider creating a separate suite in the basement or above a garage that could bring the new owners some good income potential. Do a little research (or ask your Realtor!) if this is worth your while. Any income suites you create will need to be up-to-code so before you jump in to renos, get all your information first.
4. Refresh the Paint. This one is probably the easiest to tackle and is a GREAT way of adding some appeal to your home at listing time. Freshening up the walls with a nice clean coat of paint is a great way of making the home feel “new” to potential buyers. Try to keep it neutral. And if you’re not the tidiest painter, it may be better to hire a pro to do the best job.
Working with a Realtor, you’ll be able to determine what your best course of action is. We want to sell your home for the highest amount possible, and with the least amount of effort too! Give us a call and we’d be happy to work with you to meet your real estate goals!