If you’re considering selling your home in the near future, you may have wondered whether renovations are needed before your home goes on the market. And if yes, how much should you invest and what type of remodeling will get your investment back?
Caryn Myers, sales representative at RE/MAX NorthWest Realty, answered all your need-to-know questions. In short, homeowners should invest in renovations prior to putting their home on the market, while remembering that some renovations are more important than others.
“I hear people use the excuse all the time that they feel it’s better to let the buyer do updates that suit their needs,” she said. “But houses sell faster and for more money when they are updated and have a neutral colour pallet.”
Repainting to neutral colors like off-white, beige or grey makes a big difference in the home value, and happens to be an easier do-it-yourself project.
Myers also listed several bigger renovations that will increase a home’s selling point, such as installing new shingles, furnaces, windows, fencing, flooring, and ensuring that the kitchen and bathroom—arguably the most essential and widely-used spaces—are in good condition.
Every buyer may have different tastes in style, whether it is modern or farmhouse chic; however, a good rule of thumb is to complete any general repairs and fix anything that is broken. Buyers may find damage scary because it could potentially mean there are more serious issues hiding in the walls.
There are also home renovations that don’t add value to your home. This includes installing carpeting, which is a well known dust magnet and hard to clean, or buying expensive appliances when the current ones are still in decent condition and perhaps only in need of a good scrub.
“I always recommend to home owners to pick a big job each year to keep it updated—a rotation of sorts. Then it doesn’t become overwhelming all once 10 years down the road,” Myers said.
“A buyer needs to come up with a down payment, usually between 5 per cent to 20 per cent the cost of the house. This is quite a challenge, especially for first time home buyers. It’s easier, however, to come up with 5 to 20 per cent of a job already done and get a slightly higher mortgage, than come up with the total cost of a job after the purchase of a home.”
“Keeping this in mind, there are more buyers available, in the buyer pool, of a home that is updated than a fixer upper,” Myers said.
A house inspection will help make a to-do list, and often categorize jobs into immediate safety concerns, to jobs that you might want to consider down the road, Myers said.
Providing one last piece of advice, Myers noted that it’s important to start planning for home renovations early in order to budget wisely and sell your home with pride.
“You don’t want to wait until the house needs all of the repairs done, and/or you are overwhelmed with the financial burden and let things get run down,” she said. “You want to hand over your home with pride, and know that the buyer will enjoy your home as much as you have. Budget for maintenance to be done on a regular basis.”
