Home Renovation and Selling Price- the Two Aren’t Always in Sync

You are an informed consumer. You read the news and keep up with the headlines. You are a realist and understand what’s going on in the economy. You watch the shows, and know what it takes to sell your house.

The time comes; you got a new job, are relocating or finally made the decision to move. You want to get the most for your home, who wouldn’t? So you think to yourself, why don’t I renovate to increase the selling price… Buyers love expensive fixtures, new kitchen cabinets and shiny granite counter tops and they especially love brand new stainless steel appliances! Who wouldn’t?

Now before you go ahead and pull out the sledge hammer and credit card, you might want to consider this:

While home improvements can raise the value of your home, they will not
Pay off 100% in the short term and will not raise the value of your home over the current market value range for your property when compared with similar properties on the market.

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The simplest way I can explain this is as follows,

Say for example you are selling an entry level 3 bedroom town home. Buyers expect a clean, functional kitchen. They would love custom cabinets and a granite counter top but they will not pay for it. If you were to do these improvements for selling you would not recoup the money spent. On the flip side, if your house was in the 600,000+ range buyers expect this. Not only do they expect it but they will deduct from any offer, their perceived cost in bringing the home up to their standard, if they are interested at all.

Another common pit fall is that buyers will not like your decorating taste. Decorating is a great way to personalize a home and add your character to it. However, if your goal is to sell for top dollar then home staging is what you want to consider. Keep it clean and simple. The less personal, the better.

On a final note, if you are interested in selling your home and are thinking about making improvements consider consulting an experienced realtor. In addition to giving you an accurate market value, they can also show you what improvements will give the best return for your dollar.

If you are a home owner located in Mississauga, Milton, Brampton, Oakville, or Burlington, contact Jeff O’Leary for all your Real Estate needs.