Are you unsure if you should renovate your home before putting it on the market? This is something we occasionally get asked by prospective sellers, and it always depends on the situation.
Everyone’s situation is different, but there are a few key factors to keep in mind when deciding whether to renovate your property.
Who are you targeting?
The first thing to consider is who your prospective buyers are and how they will benefit from a potential renovation.
Think about things such as the size of your property, its location, whether it’s a condo or a townhome. For example, if your property was designed with a family in mind, is on the smaller side but still close to amenities and schools, it will most likely suit a young family. In this case the prospective buyer would probably prefer a turnkey home.
Buyers with young families are less likely to want to go through the renovation process and would rather pay a little extra for somewhere they can move into right away. If you think this is the case then consider renovating as you should see a good return on investment.
Looking at the market
When deciding to renovate you should also pay close attention to the market. Speak to your Realtor about current conditions and whether it’s a buyer’s or a seller’s market.
If the market is currently favouring sellers then choosing to renovate can see a good increase in value with an assurance that you are not pricing yourself out of the competition. If the market is more weighted towards buyers then you are less likely to see a good return on your investment if you choose to renovate.
What to renovate
If you do choose to renovate it’s important to know exactly how and what you plan to tackle. If your property requires a lot of modernization (maybe it hasn’t been touched since the 80s) then you should maybe think twice before renovating. In many cases projects such as this can often reveal a range of issues that can lead to even more work. In these scenarios we recommend lowering your price based on the need to renovate.
Speak to your Realtor and a general contractor about which areas of your home will yield the biggest return on investment. How much work you need to do will depend on your home’s value, the market, and the area your property is in.
One of the quickest and least expensive ways to increase value is through replacing or refinishing flooring and painting the walls. This brings a new lease of life and is proven to attract buyers.
Kitchens are a very big draw for prospective buyers, however, it is important to tread carefully when renovating as this can often be very costly and time consuming. New appliances, cabinets, draws and light fixtures quickly add up in cost. A simple and less pricey alternative can be adding a clean ceramic backsplash, or refinishing a countertop.
Return on investment
The biggest thing to ultimately consider is your return on investment. Renovating areas such as your attic, basement, or adding a deck are just too costly and do not result in big enough returns.
It is also important to understand that renovations come down to taste, and in many cases a buyer will prefer to carry out their own work to their taste. If you are unsure about whether to renovate speak to your Realtor and they can make recommendations specific to your situation.
For more information on properties in Pemberton, don’t hesitate to get in touch with one of our local Realtors!