Do you believe renovations are solely about improving the comfort of your current home and that they're unnecessary before selling? Think again: presale renovations can significantly impact your real estate transaction!
In this article, we will explore how renovations can affect the selling price of your property. Let’s dive in!
Renovating your house before selling: is it worth it?
Renovating your property before putting it on the market can be quite beneficial. First and foremost, a recently renovated house typically sells faster. Indeed, many buyers are often hesitant to purchase a house that requires significant maintenance, so a well-updated property can be more appealing to potential buyers.
Additionally, certain renovations can positively influence the building inspector's report, which is usually ordered by prospective buyers. A favourable inspection report reduces the risk of the buyer withdrawing from the deal.
Moreover, strategically chosen renovations can boost your property's value. However, not all renovations offer the same return on investment; some provide a much greater advantage in terms of resale value.
If you're looking to sell your home quickly, focus on improving its condition and appeal through targeted renovations rather than undertaking a complete transformation. Opt for a few key updates and leave additional customization to future owners.
With this in mind, where should you start your renovation efforts? What are the most cost-effective upgrades to consider, and which ones are better left undone? Let’s dive in!
The 3 most profitable renovations to boost your property’s value
The return on investment for renovations can vary based on the choices you make. Here are the top three profitable renovations to consider before selling to maximize your property’s value.
1. Upgrading the bathroom
The bathroom is a key area in a home and can greatly impact the buyer’s decision-making process. To maximize its appeal, consider:
- Updating the faucets
- Adding storage solutions
- Installing new flooring
The Appraisal Insitute of Canada (AIC) reports that bathroom renovations can yield a return on investment of 75% to 100%, making them a highly profitable choice.
2. Renovating the kitchen
The kitchen is a central space where people spend a lot of time, and it has a significant impact on a buyer’s decision. Consider these renovations:
- Replacing the sink and faucets
- Updating the cabinets and drawers
- Installing a new countertop
- Adding new wall coverings
According to the AIC, kitchen renovations can recover between 75% and 100% of the investment, making them a highly valuable upgrade.
3. Refreshing the interior and exterior walls
If you’ve lived in your property for several years, repainting is likely needed. The colours you chose may not appeal to potential buyers, so opting for light, neutral tones can make your home more broadly appealing.
Painting projects typically allow you to recover between 50% and 100% of the investment upon sale.
Selling your house: renovations to avoid
If you're looking to increase your home's selling price, it's wise to steer clear of certain renovations that may not provide a good return on investment. While these updates might enhance your personal comfort, they typically do not add significant value for prospective buyers.
Here are a few examples of less profitable renovations:
- Paving the driveway
- Installing a swimming pool
- Fencing the yard
- Redoing the landscaping
Though these improvements can be enjoyable, they should not be your primary focus when preparing to sell your house.
Use the services of a building inspector to identify necessary repairs
Even if certain renovations aren’t considered highly profitable, they may still be necessary. Problems such as a deteriorating roof or inadequate thermal insulation can be easily spotted by a building inspector and could potentially deter buyers if left unaddressed.
To streamline the process, consider hiring a building inspector for a presale inspection. This proactive approach not only shows potential buyers that you're committed to transparency but also helps you discover and address any major repairs before listing your property, ensuring there are no hidden defects.
Are you looking to sell your property?
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