Posted on
May 2, 2023
by
Comox Valley Homes Team
Get Ready to Sell: How to Boost Your Home Value
Are you ready to sell your home? If so, then you're likely wondering what kind of renovations and/or improvements can help increase the value of your home and get you the most amount of money back?
The Appraisal Institute of Canada suggests that improving your kitchen and bathroom and painting both the inside and outside of your house are good ways to begin home renovations. They also recommend enhancing lighting, countertops, curtains, cabinet hardware, and flooring, as these changes can significantly improve the value of your home when selling.
Prioritize What Needs To Be done
While it's important to focus on improving the look of your living spaces, don't forget to prioritize necessary work that will be a worthwhile investment, such as fixing the roof, windows, and doors. If these essential components are in poor condition or need to be replaced, potential buyers won't be impressed by cosmetic changes like new countertops. Experts suggest that investing in repairs like windows or a roof can bring a return of up to 75% of the cost.
Investing in energy efficiency is a great way to make a profit while improving occupant comfort and reducing electricity costs. For a long-term gain, individuals can take advantage of financial assistance and tax credits from municipalities and the government when renovating for energy efficiency.
Assess Recoverable Value
When considering major renovations such as a kitchen or bathroom you must calculate the recoverable value. According to experts, the maximum amount you should spend on renovating your kitchen is 15% of your total property value. For example, if your house is worth $250,000, you shouldn't spend more than $37,000 on your kitchen renovation. However, it's important to note that you can expect to recover approximately 75% of this cost when you sell your home.
According to Eric Périgny, president of Reno-Assistance, the percentage of the amount you can get back from renovating your kitchen depends on its previous condition. If your kitchen was already in good shape before the renovation, you may receive a lower percentage. If you have completely redone your kitchen and plan to sell your home, it may be better to leave it as is rather than doing small jobs. Potential buyers may not see the small jobs as added value in the selling price.
Staying Neutral is Key
Avoid making changes that are too eccentric or exclusive to your taste, as buyers may find it difficult to match the decor. Stick with neutral colors and keep the design of your home timeless. You want buyers to be able to envision themselves living in the home, and that is difficult for them if everything is overly personalized.
Keep Your Receipts
To prove the value of the renovations it's best to keep your receipts (materials, fees, etc.) in a safe place to prove the date, cost and quality of the work. This will add weight to your argument when negotiating the sale of your property.
Maintain your property
If renovation is not the wisest option for you, then ensuring consistent maintenance of your property is a profitable tip that should not be overlooked. When choosing between two similar options in the same neighborhood, the condition of the property will be a crucial factor, with an impeccable property being preferred over a neglected one.
Get an Expert Opinion
Consider calling us to come in for a walk-through before making any major property renovations in preparation for selling your home. We have seen many clients invest in costly renovations, such as installing a swimming pool or building a large deck, that may not provide a positive return on investment. In some cases, such renovations may not be reflected in the appraised value of the home. Thus, we advise against making costly upgrades that might not increase your home's value in the eyes of potential buyers. Give the Comox Valley Homes Team a call today to discuss your home!
