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Renovating for resale

You might be thinking of refinishing your kitchen or putting an addition on your home. Maybe you’re considering a flooring upgrade or putting a fresh coat of paint on your walls. Before spending thousands of dollars and jumping into a renovation project, it’s a good idea to find out whether you’ll recover the cost when you sell your home. Consult with your REALTOR® to determine which options are likely to offer a good return on your investment.

Here are a few tips to consider if you want to renovate for comfort, style and enhanced resale value:

Location, location, location. Your REALTOR® will have an excellent grasp of housing prices in your neighbourhood. Remember that the neighbourhood sets the price of your home. If you live in a moderately priced area and renovate to add a gourmet kitchen and spa style bathroom, you’re not likely to recover your costs. Compare your home to others in your neighbourhood for an idea of the area standard. This doesn’t mean you shouldn’t put in a six-person sinker tub and chef’s cooking range if that’s what you really want, just don’t expect your resale price to reflect the cost of these additions.

Classic never goes out of style. Remember when avocado appliances and shag carpeting dominated interior decorating? What about mirrored walls and chrome track lighting? The trendy styles of yesterday are often the hard-to-sell homes today. You’ll be most likely to recover your costs when you sell your home if you select timeless furnishings like neutral carpets or hardwood floors, simple wood cabinetry and white appliances. People have always been drawn to these classic looks and will continue to be drawn to them in the future.

Expensive doesn’t mean better. Don’t assume just because the renovation costs a bundle, you’re going to be able to recoup the full amount upon resale. Often it’s the less expensive changes like painting the exterior of your home, laying new carpets or updating your old kitchen cabinets that will have the best potential payback. According to a survey by the Appraisal Institute of Canada, it’s the simplest renovation that has the highest average return: painting the interior of your home.

Do it right the first time. If you’re considering a serious renovation, don’t assume you can do it yourself. Upgrading plumbing, electrical systems and other major work should be handled by a professional. Buyers are knowledgeable and will look closely at workmanship as well as having an inspector examine the home. You don’t want your renovations to look amateurish or be deemed unsafe. Also, if you’re planning a major renovation like adding a deck or converting a basement, you need to get a building permit from city hall. Renovations completed without proper permits can cause serious problems when it comes time to sell your home. Ask your REALTOR® for a list of professionals.

From new flooring to an upgraded furnace system, your REALTOR® has the knowledge to recommend what will work best for your home. Their expertise means you can rest easy in your newly renovated home with the knowledge that you’ve made changes which will enhance your home both now and when it comes time to sell.