Should We Bother Renovating Before Selling Our Home?
EMOTIONALLY INVESTING IN YOUR HOME RENOVATIONS IF YOU PLAN TO MOVE WILL COST YOU MORE THAN YOU NEED TO SPEND.
Lately I’ve been quite impressed with the house prices in our area but at the same time know that if we sell the cost to renovate and buy weigh heavily on our minds.
Not only that but the real estate market in Canada might be hot right now but if you have renovating to complete that might set you back with missed money opportunities.
The top 3 questions next to time-frame that you need to answer before putting your house up for sale are;
1. Should we renovate our home to get better return?
2. How much will our renovation budget be?
3. Do we want to upgrade or downsize buying a new house?
On our street for 2017 we’ve had 5 houses up for sale all of which sold in and around a week or less. That might sound impressive and it is because houses don’t last long living in the Greater Toronto Area (GTA). With no more than 100 houses on our street that’s a huge number of nosey neighbour radars going off.
Who are buying these houses?
Most of the home buyers that have moved in are in their late 30’s and up with and without children. It’s near impossible for the Millennial generation to buy a house in Toronto most of which start in and around the million dollar mark. Most of these houses could do with upgrades and renovations which means more work and more money. With University and College loans and a war of an employment market finances can become a struggle. If it’s hard to pay for rent you’ll never make it through a mortgage. This is why more and more younger adults are opting to rent instead of buying. They can’t afford it. Everywhere we look house prices have skyrocketed.
Renovating or Run
In other words, `Is It Worth It`? Will you make any money back from it? If not, it`s up to you and the real estate market at the time of selling.
Not one person I know wants to spend the time and money to renovate a house they want to sell unless they are trying to hook more money from the buyers. There are plenty of buyers who fancy a house renovated top to bottom.
Return on investment doesn’t just include the financial aspect of the deal either but also the physical investment. Renovating a house is not a small undertaking unless it’s a quick fix. When renovating the name of the game is to “Do it right the first time” however trusting someone else’s work is another story.
Not all home inspectors catch things that are wrong with a house during inspection nor do they check everything. There’s always that risk of buying a renovated lemon which has to be torn down and the renovating process to start over.
Best Types of Renovations
Enhance your home renovations by sticking to the main rooms that cause the most fuss for potential buyers. Almost every buyer gravitates to the kitchen and bathrooms. The flooring and tile work is another renovation that will not only bring the house to life but call on the buyers to bid.
Home renovations that add value
Home improvements such as a garage addition, stamped concrete driveway, pool or even a metal roof might not bring you the return you were hoping for when you sell your house. What will sell your house is how big your property is and the size of your house.
You can easily add more money to your real estate investment by making the right moves when upgrading or renovating your home for sale. Not all renovating projects will give you a 100% return if any but there are certain ones that score bonus points with buyers.
Fix the obvious stuff if you really want to make an impact when the For Sale sign goes up.
Renovations to ditch
If you don’t plan to stay in your house stay away from invisible renovations and those that are custom to your home that will narrow your selling potential.
All those little fixes you do around the house likely won’t matter much. I won’t walk into your house and say oh look there’s a new furnace. These are more home maintenance types of renovation projects you will see limited return if any.
Blowing more insulation into your attic, installing new plumbing, duct work or other bits and bobs will likely go undetected when you go to sell your home. Fix what everyone can see unless of course you must repair what you can’t.
Even then a massive landscaping project might sell a home but it won’t yield returns like other areas of the home. Spend your money wisely. I’m not saying to cover up repairs I’m simply suggesting that you to put your budget into areas that will make money for you.
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