Despite the hot housing market in Vancouver, for those homeowners who want to maximize their home’s value, a few renovations may make all the difference. The CEO of the Greater Vancouver Home Builders’ Association, Bob de Wit, believes that renovations are a "critical piece of selling a home."
I think that you can do a very good return on investment with a small amount of work. You can improve the selling price of your home by doing some very simple things.
If you’ve been thinking about the things you can change around your home to increase its sale value, here is some advice from expert renovators that you will want to consider before moving forward with renovation plans.
Rooms to Focus On
The Appraisal Institute of Canada (AIC) recommends focusing on main rooms like the kitchen or bathroom. Small changes like replacing the door knobs to replacing the fixtures can bring in a good return. National Bank Insurance, a Canadian company based in Quebec, said upgrading the kitchen and bathroom could give homeowners a 75 per cent return on their investment.
You shouldn't start by doing any major recommendation such as changing the counter tops. Focus on smaller features instead, like updating the cabinets. This can cost between $3,897 and $5,474. Updates to a bathroom can run between $3,955 and $5,555, depending on the project.
ReVISION Custom Home Rennovations’ Kevin Parenteau said buyers were looking for nice rooms.
People buy and pay for nice kitchens and bathrooms and floorings and stuff. The façade is what I think maybe draws them in.
Another change many homeowners can consider without breaking the bank is outside the home. Kenny Gemmill of Kits Construction & Development has over 20 years' experience in the industry and is also a contractor for Love It or List It Vancouver.
We get a lot of calls, especially from people who are selling their home, for landscaping.
Some changes to the exterior of a home that cost little and bring in buyers are a deck, which can cost up to $4,500, or a patio, which can cost up to $2,000. LendingTree, an online loan marketplace based in the United States, suggested that a deck could make "it feel larger for not a lot of money."
Parenteau also said that exterior work could ensure the home maintains its value.
If you maybe clean up your drive way or what have you it does make it more enticing from a buying perspective. I don’t know in terms of if you will get your money 100 per cent back, you might break even on it.
Exterior painting can cost between $1,713 and $2,406, while siding is between $10,834 and $15,216. According to National Bank Insurance, putting a new coat of paint inside or outside the home is a good way to get 50-100% return on investment.
The Appraisal Institute of Canada’s website suggest choosing renovations that have long life expectancy. These include roofing, energy-efficient heating and cooling and changing the windows. These changes can last for up to 15 years. The costs of replacing a roof can run from $5,312 and $7,460 while new windows can cost between $4,133 and $5,805. National Bank Insurance also recommended repairing the roof and said, installing an energy-efficient system generates an estimated 50% to 80 % payback.
Know the Price
Experts have also advised that homeowners do some research and budgeting before beginning a renovation project. You should always consider the neighbourhood the property is in when planning your next renovation and you should think about the expectations of the possible buyers. It's a good idea to renovate the property you're trying to sell, as it will increase the value of it. But be careful not to go overboard. Set a reasonable budget and don't experiment a lot, as the future buyers might not appreciate your efforts.
The Little Extras
There are also a few other changes you can make that will increase the resale value of your home. Consider updating your lighting fixtures, adding some light landscaping or even upgrade the door handles. Decluttering can make your home more attractive to buyers, too. Stay as neutral and clean as you can: a little bit of colour is okay, but you should stay close to neutral, as it is appealing to a wider range of potential buyers. A few people will like a hot pink room, but a dozen people will opt for the neutral white or beige set up. It is very important for the buyer to be able to envision themselves in their possible new home.
First impressions are very important, so choose wisely. You only get one chance to impress the buyer.