The tricky thing about providing real estate advice is that nothing is ever carved in stone. Every seller is different, and so is every buyer. Times can also change. What worked ten years ago might have zero impact today and vice versa.
One aspect of selling where there are a lot of misconceptions and confusion is what to do to prepare your home for sale. Ideally, your house should look spectacular and make potential buyers fall in love at first sight. That often means performing a few strategic renovations and home upgrades. But that also brings us to another tricky issue.
In a changing market where everyone is looking for something different, how do you know what renovations to make? Something that looks beautiful to you might be a turn-off to someone else. All the same, there is no need to feel discouraged. A few guidelines can help you make the most impact with the least possible outlay of time and money.
Focus on Results
Think of the reasons why you want to sell your home and how involved you want to be in the process. While every seller wants to earn the highest amount possible, not everyone is willing to live for months in a construction zone to do it. Your first step is to determine how much potential renovations can pay off and decide whether it’s worth your time and effort.
Some updates cost very little when compared to the results we see consistently. Some could cost more than they’re worth. Others may pay off depending on the situation. Knowing what renovations to do and what to avoid will save you a lot of unnecessary stress and leave you with more in your bank once your sale closes.
The right guidance is critical when you need to get the best results. The following insight will help you get off to a great start:
- FSBO vs Real Estate Agent Assisted Sales: What’s Better?
- Should You Sell Your House or Rent It?
- How Canada’s Newest Legislation Impacts Sellers
Never Worth It
In real estate, we hesitate to use words like “always” and “never.” There are too many factors in a changing market where everyone has different notions and priorities. So when we say “always” or “never,” you may take that to mean “almost always” or “almost never.” Exceptions occur, especially in a busy market where buyers quickly scoop up every property that hits the MLS®.
Deciding what updates to do and what to avoid comes down to the numbers. If you’re going to spend $10,000 only to get little to nothing in return, then why go to the trouble? Here are some of the most expensive renovations that tend to offer the least return on investment.
- Installing a swimming pool: Some buyers love the idea of a pool, but very few will pay more for the luxury. For others, filling in or tearing down the pool will be the first item on their to-do list. Your best bet is to let your potential buyer decide if this is a feature they want.
- Wall-to-wall carpets: There was a time that this style was all the rage. Then it fell out of favour in a big way. Now, carpets are making a bit of a comeback but are probably not worth installing if your home doesn’t have them already.
- Overbuilding for the neighbourhood: There may be a certain amount of pride that goes along with owning the biggest house on the block. But much of the resale value is tied to the location, not the house itself. In that case, pride may be your only payoff, and perhaps some angry stares from your neighbours.
Rarely Worth It
Some renovations can transform the appearance of your home, and the end result can take your breath away! But if you plan to sell, you must ask the question, “Who is this for?” If it’s for you and you don’t mind spending the money, great! But the last thing you want is to invest thousands of dollars on an upgrade only to find that buyers are less than impressed. Examples include:
- Buying high-end appliances: While kitchen upgrades are valuable, it is possible to go overboard. Many buyers look forward to picking out their own appliances and are not willing to pay more for a home with an expensive brand that they wouldn’t have chosen for themselves.
- A bathtub with jets: Buyers may love a spalike bathroom, but you don’t want to overspend on top-of-the-line features that will be hard to recoup.
- A chef’s kitchen: Unless you are selling a luxury home, upgrading to a chef’s kitchen is likely too expensive to recoup your investment.
- Installing solar panels: The trend of protecting the environment and generating renewable energy is growing, but it doesn’t tend to be profitable when selling your house. At least not yet.
Sometimes Worth It
Potential buyers have certain expectations in mind when browsing through available listings. Some want a house where they can move right in without so much as picking up a paintbrush. Others are happy to purchase a home with a few cosmetic imperfections, especially if they receive a concession of any kind.
Even if a house badly needs a facelift, most buyers expect it to be habitable and free of significant defects. Issues that affect the ability to live comfortably in the home can be dealbreakers. These could include:
- A collapsing roof
- Structural issues with the house
- A leaking basement
- Mould, mildew or insect infestations
Legally, if you know about a defect, you must disclose it to a potential buyer. Should you make these kinds of repairs before putting your house on the market? A few people may jump on the opportunity to land a fixer-upper if they can get the house at a discount. You will have to evaluate the cost and the likelihood of a successful sale in spite of the defect. A local real estate agent can help you run the numbers to see whether the repairs are worth it or if it’s better to sell the house as-is.
Want to know even more about preparing your home for a successful sale? Here are some resources you may find interesting:
- Minor Upgrades, Maximum Results
- The Power of Staging When Selling Your Home
- What’s Your House Really Worth?
Always Worth It
Now that you know what to avoid, let’s take a look at some of the updates that consistently earn a positive return on investment and should always be considered part and parcel of selling a home.
- Cleaning and decluttering: It costs nothing but time, and if you do nothing else, you will get results. A clean home with minimal clutter instantly appeals to buyers and helps them imagine the space as their own. It’s hard to believe some sellers skip this step!
- A coat of fresh paint: Few things can transform an old, tired-looking home more than a coat of light or neutral-coloured paint. Dark, drab rooms instantly appear more modern and even more spacious.
- Adding more storage space: Everyone wishes their home looked more organized. The answer is more storage space! Expensive renovations aren’t necessary. Adding organizers to existing closests may be all you need to wow potential buyers.
- Kitchen and bathroom updates: These two rooms have more impact on buyers than anything else. Attractive new backsplash, updated hardware and new silicone around the sinks and bathtubs will all help to make a positive first impression.
- Enhancing natural light: A house filled with light is a house that is attractive to potential buyers. And this can be an easy enhancement to make. Often, all you need is to leave the drapes wide open while using soft sheers to reduce the glare. For added measure, use a bright lamp or two in rooms where windows are small.
- Staging: Staging is a method of designing your home in a beautiful but impersonal way that helps buyers imagine themselves living there. Many real estate agents will offer consultations and provide tips on how to arrange your design for maximum effect. At Woolcott Real Estate, we provide professional staging for all of our clients.
Do you want to know more about how you can maximize your sale in today’s market? We would love to help you get started. Reach out to us today right here or call 905-332-9223 for more information.
