When you’re trying to sell your home or even just thinking about putting it on the market, you probably have some idea of what it’s worth. But there’s one problem. What your home is worth to you may not be what it is worth to other people. You need to look for ways to make your home more attractive to more buyers. The more potential buyers there are for your home, the higher of a price you will be able to get for it.
In many cases, renovations are the answer to increasing the value of your home, and while you’re living in your home those last few months, you get to enjoy those renovations yourself! Follow these tips when planning your renovations with the goal of making your home worth more on the current real estate market. There are also some home improvement tips to increase the value of your home.
According to the Appraisal Institute of Canada, people tend to look for certain types of renovations, which means you will get varying percentages back on the investment into your home. Here are some of the most common renovation projects for homeowners wanting to sell and the estimated return on the investment into the work:
Kitchen and / or bathroom renovations typically bring 75 to 100 percent return on investment.
Just a simple paint job can bring 50 to 100 percent return on investment.
A finished basement with a rec room can bring anywhere from 50 to 75 percent return on investment.
Replacing doors and windows can bring you back about 50 to 75 percent of the money you spent on them.
Landscaping projects can bring a 25 to 50 percent return on your investment.
Installing a swimming pool, however, usually brings no more than a 40 percent return on investment.
So the first thing you should think about when planning renovations for a home you are about to put on the market is the return on investment you can expect from those projects. However, if doing those renovations is going to prevent you from having the time or being able to afford basic maintenance on the home, then you should skip them. It is far better to do regular maintenance to care for the home you have than try to break the bank and do something extra.
When planning projects, you should also take a look at the type of neighborhood your home is in. Buyers who will be looking at homes in your neighborhood expect certain things. For example, if you live in a subdivision with a lot of young families, you might consider adding that finished basement and rec room. However, if seniors are the largest population of your neighborhood, you probably won’t get a good return on that same investment.
Current trends are also something you should keep in mind when planning projects. For example, hard wood flooring is currently more sought-after on the market rather than carpet, especially if you can manage to install hard wood floors in every room of the house. Laminate flooring might be a good substitute if you can’t afford hard wood flooring. Ceramic tile in the bathrooms and kitchen also typically score higher with potential buyers right now.
When listing your home, make sure that your real estate agent knows what knew projects you did in your home and will include that information in the listing. When you can say that the kitchen is brand new, you’ll probably land additional showings, which often leads to a faster sale. And don’t forget those upgrades that aren’t readily obvious, like new roofing or insulation.
Let the experts at Barrie and Area and Your Choice Realty help you increase the value of your home.