PLAN YOUR HOME RENOVATION WISELY
Home renovations can make your home look more beautiful and feel more comfortable and, if this is your only goal, you should certainly move forward with them. Moreover, home renovations can also boost the value of your home – but not always. This article shares our thoughts on the financial pros and cons of various renovations, particularly as they relate to home re-sale value, as well as potential pitfalls. Also consider whether asbestos is present because it can significantly change the cost of renovation!
Renovating in order to maximize the re-sale value of your home? Here are a few tips on what to fix and what NOT to fix:
- Staging. Ironically, staging makes the biggest difference to the re-sale value of your home – and is also the cheapest thing you can do. Make sure your home is clean and decluttered, and then stage the home to maximize the curb appeal. We are expert at this – reach out to us and we’ll be glad to share our expertise, or even do the staging for you if you are planning to sell!
- Return on Investment. Expensive home renovations should be avoided if you’re planning to sell because the increase in the sale price will NOT cover your expenses! Swimming pools for example rarely recoup their cost at resale. Not only do they cost a fortune to install, but they are also considered high-maintenance by many buyers – and a disincentive to purchase!
- Keep your home comparable to others in the neighborhood. The sale price of a home is very dependent on the neighbourhood the home is in! Adding really expensive bathroom fixtures in a home in Port Coquitlam will not bring the selling price up to a comparable home in Burnaby… Your home will certainly sell faster, but you will not recoup your investment. The best return on investment is from homes that are representative of their neighbourhood, not those which are far superior or inferior to their neighbours.
- Best returns are from the basics: make sure the roof doesn’t leak and the furnace & appliances work well. Flooring makes a big difference in the desirability of a home, with wood or laminate floors being strongly preferred. Paint the interior of the home in light colours to make the spaces look bigger and brighter.
- Kitchens and bathrooms deliver the best returns on home renovation investment. Window replacement can also provide a good bang for the buck.
You should always check what rebates are available for Home renovations:
BC Hydro – for making energy efficiency upgrades
Gov. of BC – tax credit for seniors and persons with disability
Gov of Canada – list of rebates for home renovations.
Asbestos is present in nearly every home built prior to 1990, and can pose a significant health hazard to renovators. It’s not dangerous until disturbed but, of course, renovations will disturb it and release it into the air. For this reason, it’s really important to have a qualified asbestos professional complete an asbestos survey before starting any work. Check on Gov of Canada air quality website when and where can you be exposed to asbestos!