Tips to a Successful Home Renovation
Return on Investment Winners & Losers
Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
If you’re looking for a realtor to help you sell or buy a property, call me today!
Best Return on Investment Renovations
Payback on renovations is measured in three ways:
- The value of increasing the selling price of your property
- The value of enjoying the renovated space
- The value of maintaining the worth of your property
#1 MISCONCEPTION ABOUT RENOVATIONS:
Just because you put $100,000 in renovations, it does not mean that your home is now worth $100,000 more than it did when you started. Why? Style is important, buyers might have different cosmetic preferences than you. For example, if you pay to renovate your entire home with shag carpet, that does not necessarily match the consumer preference for today.
Another reason is that a number of renovations may need to be made simply to bring your home up to the industry standard. If your roof is nearing the end of its life expectancy, it is essential to have it replaced. In this case, you are simply maintaining the worth of your property, not necessarily increasing the selling price of your property. You are bringing it up to what it should already be at.
TIPS TO CHOOSING SMART HOME RENOVATIONS
- Choose improvements with long life expectancy
- Invest in modern updates in high-traffic areas – think the kitchen and the bathroom
- Be careful when considering unique features with care – opt for a more neutral pattern that will appeal to all tastes
- Before renovating, consider the value the improvement may add to the overall value of your property. This is where the expert advice of a professional & experienced REALTOR can provide an objective perspective
- Be careful with Over improvement – consider your neighbourhood and expectations of the buyers shopping there
Questions almost every buyer or buyer’s realtor will ask the listing agent when they walk in the home:
- When was the roof last done?
- When were the hot water tank and furnace replaced?
- What renovations were done and when were they done?
- How old are the windows?
If you’re looking to sell your home as is, without any upgrades or renovations, make sure that you have the answers to the questions above provided to your realtor. If you are thinking about renovations, making sure that there is a “recent” answer to the above questions will help to get you a top dollar sale. The better the answers to these questions are, the more satisfied the average buyer will be with your home.
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