Few can resist a classic makeover story – and home transformations are no exception. TV networks have built empires making it seem that anyone can take an outdated, ’70s bungalow and turn it into a dream urban escape – doubling the home’s value in just 30 minutes.
But how easy is it, really, to make a profit off of home renovations? You’d be surprised.
Renovations are important to consider in any market. Making updates will help the home show better and could help you net more money at the end of the day. Buyers love homes that are turnkey – their first impression can make a big difference in your final sales price.
But before picking up a hammer, sellers should consult with a real estate professional. Each home and market is different. As highly experienced agents we have the expertise to clearly specify which updates will have the biggest return on investment and also advise if your home may be fine to sell as-is.
We offer our Sellers advice on everything from what colours to paint to what flooring to choose, and what will really make an impact in the sale.
Ready to list or wondering if it’s time to renovate? Here are a two important questions homeowners should consider:
1. ‘Are there simple updates that can have a big impact in my home’s resale value?’
Updating a home doesn’t have to involve a complete overhaul and demolition crew. Before getting too carried away with updates, Fuentes often reminds his sellers that the buyers will want to make the house their home, too.
Unless a home is completely remodelled, many buyers are going to end up making their own updates to make the home exactly how they want. Most times we tell clients to not spend too much money because you just want to make it look good enough for a first impression.
For quick and simple updates, Sellers can start by updating finishes, such as replacing door knobs or faucets with fixtures in trending colors such as black or brushed gold. Lighting fixtures are another area that can be easily and often inexpensively updated.
Small repairs can make a pretty big difference and will make the house look better when potential buyers tour it.
For an even bigger impact, sellers should consider the power of paint. Adding neutral or modern colours to key features or even repainting the walls can completely transform a room.
A simple example example is a home with an original brick fireplace dating back to the ’80s. To help modernize the room, Home Owners can simply paint the brick white and add a matching wooden mantlepiece above it. FOrr less than $300 the fireplace then becomes a focal point instead of an outdated distraction.
2. ‘Which home renovations will give me the biggest return on investment?’
While new hardware and fresh paint may be enough to get most homes ready for the market, nothing stands out like an updated kitchen or bathroom. These renovations can be more expensive – depending on the size of a home, a full kitchen remodel can cost upwards of $20,000 – but they also tend to have the biggest influence on resale value.
If you have the money to do a new kitchen, why not? It can be one of the biggest factors in helping you sell a home and getting top market value.
The return on investment from remodelling will be different for every home, and sellers should weigh carefully how their updates may impact resale value. However, as a general rule, clients should only choose to do renovations that can be reasonably expected to double their upfront investment once the home is sold. For example, if you spend $20,000 on rehab, you could get the $20,000 back and make $20,000 on top of it.
Popular kitchen updates include tiling back splashes to create a focal point in the room, adding in islands and replacing old countertops. You’d be surprised at how inexpensive and easy a counter can be to replace. If you currently have older tile or other material, you could add in a nicer stone or even do laminate countertops.
When it is time to put a home on the market – even in today’s competitive market where buyers have fewer options, many are still searching for an updated home. It’s simple – buying a home can be stressful enough. Why add the hassle of renovations?
People know that updating a home takes time, money and finding the right contractors. A lot of people just don’t want to do the work, it’s a headache. That’s why many buyers prefer an updated home. They would rather go and find something that’s already done and ready for them to move in.