SHOULD YOU RENOVATE BEFORE YOU SELL?
Renovations are often a serious consideration for homeowners planning to sell.
Nick Lima, a Calgary REALTOR® who specializes in marketing renovated homes and those in need of renovations, says reaching out to the right experienced professional should be the first step.
“There’s always something that can be done to improve the marketability or value of a home,” he said.
A knowledgeable Realtor will visit the property to do a complete walkthrough and help put a plan together. With this guidance, potential sellers can determine the value of their home in both its unrenovated and renovated states, and then create a budget.
It’s important to understand whether the purpose of the improvements is to increase the home’s value or its marketability.
“Sometimes sellers will expect to get dollar-for-dollar back in value, but the investment actually means the buyer will buy the house where they may not have without the renovations,” said Lima.
Lima suggests starting with any renovations that will bring the house up to the “norm” of the neighbourhood. “If all the homes in the neighbourhood have certain features, and this one doesn’t but there is a budget to do something, they may want to bring it up to that level,” he said.
Sellers should also understand the market and their target buyer before spending time and money on renovations. “A lot people have an idea of what they think needs to be done, but then attention and money might be focused on the wrong elements,” said Lima.
Buyers often look closely at kitchens and bathrooms, so these might be areas to focus on with renos or minor fixes. An inexpensive alternative is fresh paint, which can refresh the home quickly and at a low price.