Does your home no longer appeal to you the way it once did? Are you wondering if it's better to renovate your home or sell it and buy a new one? That important and valid question deserves careful consideration.
There are many factors to consider, both in terms of selling and renovating, to help you make a decision. Here are some ideas to help you find the best solution for your situation.
The sell vs. renovate dilemma
While for some people the decision to sell or renovate their home is an easy one, for others it's not. This dilemma is often dictated by several factors that are important to understand.
First, selling may seem like the easiest way to make a fresh start, whether nearby or in a brand-new neighbourhood. However, there are several costs associated with this choice and it depends on the real estate market.
On the other hand, renovating can allow you to adapt your home to your needs and improve its appeal while avoiding the hassle of moving. However, it's crucial to target the renovation work and analyze its costs, especially if you want to ensure that your investment is profitable.
In both cases, you need to consider:
- Your budget;
- Your current needs;
- Your short and long-term plans;
- The state of the real estate market;
- Your emotional attachment to your property and the quality of life it provides.
Sell your home to start over
Selling your property to start afresh in a new home can be a good choice if you’re looking for a change of scenery, or if you simply don't want to invest the time and money to improve your current home. This option is particularly relevant if your home no longer suits your needs and lifestyle, or if it would require major work to make it more suitable.
By selling, you can use your real estate equity to invest in a property that better meets your expectations, whether it's brand new or already on the market. You'll have the opportunity to explore new neighbourhoods or even different cities if you're looking for a more radical change.
Still, changing your living environment is not without its challenges. Depending on your situation, finding and buying a new home can be stressful, especially if the market is competitive. What's more, the selling process can be long and involve many costs that you may not have considered before.
What are the related costs to consider?
Selling a home involves several related costs that must be anticipated. Among the various costs associated with the sale are the following:
- The brokerage commission, if you are using a real estate agent, which is usually between 4% and 7% of the sale price;
- Advertising costs, if you're selling your home yourself;
- Notary fees for preparing the deed of sale and cancelling the mortgage;
- Moving expenses, such as truck rental, gasoline, etc;
- Professional fees for a new certificate of location, if applicable.
It's important to carefully evaluate the total cost of these expenses so that you don't overestimate the profit you'll make from selling your home.
The state of the real estate market
The state of the real estate market can greatly influence your decision to sell or renovate. In fact, trends in the housing market can help you determine whether or not the time is right to sell. It's important to consider these factors when making your decision.
To help you determine whether it's a good time to sell or not, don't hesitate to seek advice from an industry professional, such as a real estate agent. It's also a good idea to stay up-to-date on what's going on in the market by following real estate news on a national, provincial and regional level.
Renovate to improve your home
Renovating your home can be an excellent idea if your property is well-located and your neighbourhood still meets your needs. In fact, homeowners whose homes are located in desirable areas benefit from undertaking work to improve their comfort and, by extension, the value of their property.
However, your decision must take into account the type of renovations you want to make, as well as the cost and time required to complete them.
Analyze the cost of the work
The cost of your renovation project can vary widely. The type of work, the materials used, the area to be renovated and the contractor's fee are all factors that can affect the budget required for your renovation.
Before making any decisions, it's important to estimate the total amount you'll need to spend to bring your home up to your standards. You can use a remodelling cost simulator or contact contractors directly for quotes.
Don't forget to include a contingency in your budget to cover any unforeseen costs.
Financing your renovation
Depending on the estimated cost and your personal finances, there are several ways to finance work on your home:
- Your savings (cash or savings);
- Your credit card;
- A home equity line of credit;
- A personal line of credit or loan;
- Refinancing your mortgage.
The hazards of renovating in Quebec
Despite your best intentions, renovating may not be the ideal option for you. Renovations usually involve a fair amount of stress, noise, dust and unforeseen circumstances. You need to ensure you can live with these inconveniences for as long as it takes.
To make your home improvement project as enjoyable as possible, remember to:
- Thoroughly plan your project and its various phases;
- Communicate well with everyone involved, from contractors and labourers to family members;
- Be flexible and willing to let go of certain aspects;
- Live away from home temporarily when the work is extensive;
- Take care of yourself by scheduling breaks or vacations.
Why should you renovate before selling?
In addition to the choice between selling or renovating, there's a third option that combines the two: renovating before selling. Renovating your home before putting it on the market can be an excellent way to increase its market value and make it more attractive to potential buyers.
A renovated property is more likely to sell quickly than a comparably priced home that needs work. The need to make major renovations to the home is a potential deterrent for some buyers who prefer a turnkey property.
Is it worth it?
If this third alternative seems like the best option for your situation, you still need to plan the renovations carefully to maximize their profitability. After all, not all work has the same return on investment.
To help you better target the work you need to do before selling your home, it may be a good idea to have a pre-sale inspection of your property performed by a qualified home inspector. The report you'll receive from this professional will help you determine which improvements to prioritize.
To determine the potential return on investment for your work, it may also be wise to seek the advice of a certified appraiser.
What adds the most value to a home?
Some improvements pay for themselves better than others. These include:
- Renovating the bathroom;
- Improving the kitchen;
- Repairing the roof.
Simply giving your home a fresh coat of paint can also be a great way to make it look newer.
On the other hand, landscaping, adding a solarium or a swimming pool are generally not recommended as their return on investment is relatively low. This type of work has more of an amenity value, for the comfort of the occupants, rather than a real impact on market value.
Finally, consider improving the energy efficiency of your property, which can be a major asset for potential buyers who come to view your home.
Do you want to sell your home?
XpertSource.com can help you find a real estate broker. When you tell us about your project, we put you in touch with qualified resources for free. Simply fill out our form (it only takes a few minutes) and we will connect you with professionals.
