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Renovating for Resale – Which renovations
will make the difference?

We have often heard that “a man’s home is his castle” and most of us like to show pride of ownership in our castles. Therefore, not all renovations are done strictly for the purposes of resale and nor should they be. Most renovations are done so that we can enhance our own personal enjoyment of our homes.

It is not uncommon for most Sellers to want to recoup all the funds they have spent renovating their homes; however, the reality is that this is not always possible. The marketplace will only pay for improvements that they see value in. For example, if you have just put in a lovely European kitchen but the trend is now towards light coloured woods, then buyers who are looking for light coloured woods will not see the value in your brand new European kitchen. That is not to say that the kitchen you have isn’t beautiful, it just means that you have to find a buyer who can appreciate it.

Experience shows us that the home that is closest to being in “move in” condition is the most desirable. Therefore, your home does not necessarily have to be grand or lavish, however, it does have to be clean, well maintained and in good condition. People today do not have the time or desire (and at times the funds) to spend on improvements.

You may be surprised to learn what some of the returns are for various renovations. According to the Appraisal Institute of Canada’s 1996 renovation and home value survey:

• A kitchen renovation will allow you to recoup 68% of your original investment
• A bathroom renovation will allow you to recoup up to 64% of your original investment
• Interior and exterior painting allows you to recoup from 62% to 66% of your original investment (that is assuming you paint with current colours and select ones that are not overly strong)
• Finished basements or a new heating system will allow you to recoup 50% of the original cost
• Landscaping allows you to recoup up to 45% of the original cost.

Keep in mind that the renovations have to be done well and look professional in order for them to add value. Potential buyers will not be willing to pay for your work if they feel that they need to tear it all out and start again.

A few key points are important to keep in mind; first, keep the renovations moderate. They shouldn’t be too inexpensive or overly lavish. Next renovate because you want to enjoy the beauty of your home and not just for resale purposes. And finally, cosmetic enhancements are usually the quickest (and least expensive) way to improve the look of your home.

If you would like a free consultation or an obligation free opinion of value on your home, don’t hesitate to contact us today at info@haltonheritage.com or 905-689-0011.

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