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Renovating Your Home
Many sellers are concerned about what improvements they should make before listing their home for sale.
Home improvements can be made for a number of reasons:
Any property can be sold if it is priced right. No matter how bad things are there is someone out there who will buy it if it is cheap enough. However, if you want to get the best price, then the property must have as wide an appeal as possible. That means placing as few obstacles as possible in the way of potential purchasers. If a buyer perceives that work should be done to make the home comfortable to live in, then that buyer will either
Anyone selling a property wants to get the most money in the least time and with the minimum of trouble. Renovating will certainly help with the last two, but does not necessarily mean getting the most money. Spending more on the improvements than you get back from the sale means you are losing money as a result. Sometimes you just have to do that. If your furnace is broken, or the wiring is dangerous, or the roof leaks, then you will almost certainly be better off fixing such things regardless of the cost. What you spend in comparison to what you get back is called the recovery rate. If you spend $10,000 and as a result get $5,000 more in the offer then the recovery rate is 5,000/10,000 or 50%. Below are some typical recovery rates.
What Will it Cost?
Following are some approximations based on basic materials in the Waterloo Region as of the end of 2012. They are provided only as a rough guide to give some notion of what might be involved in monetary terms:
An excellent investment you can make for selling is to stage your home. This typically involves relatively simple and inexpensive things that dramatically alter buyer perceptions. Things like removing clutter, changing furniture placement, altering the window dressings and decorations. Colour choices, lighting, neutral decor and depersonalised space are very important. A bit of landscaping and some fresh paintwork can also be inexpensive and produce dramatic improvements in the eyes of a buyer.
It is surprisingly difficult to detach yourself sufficiently to properly appreciate what your own home needs. It usually takes a professional eye to assess what are the best things to do and the proper order to address them. The results almost always more than repay the investment provided you get good advice and follow it. If you don't want to pay for professional staging, your Realtor can be an invaluable source of suggestions and opinion based on wide experience.
Your home may have marvellous features that anyone could readily appreciate and value, but if you cannot get a buyer past untidy borders and peeling paint on the front door, then they will never see what it is really worth. Many buyers reject a property based on just a drive past, and it is astonishing but true that most buyers have made up their minds about a property before they have been inside the front door for half a minute.
Do your renovations when you move in, and keep your home up to date. Though there may be a less than 100% recovery rate on the work you do, at least you will get to enjoy it yourself instead of doing it solely for the benefit of others. Do not let the resale value of your home fall prey to the costs of deferred maintenance.