Select upgrades that add value to your home
Protecting the resale value of your property is well within your control. Proper maintenance and adding necessary upgrades can mitigate fluctuations in the housing market and provide the best return on your investment.
“The good news in real estate is that you can build your home’s value in an appreciating market and protect it when the housing market is in decline,” says Lincoln Thompson, broker-owner with Royal LePage Gardiner Realty in Fredericton, New Brunswick.“By making the right improvements, you’ll protect the resale price through the cycle of any housing market.” Here’s how:
Choose quality materials for maintenance and upgrades. For the long-haul, quality is the single most important factor in renovations and upgrades. Inferior products must be replaced more often, and labour costs rise as cheaper materials are often more difficult to work with. Remember, in upgrades, newer isn’t necessarily better, so try to retain the elements that are worth keeping.
Renovate to the level of your surrounding neighbourhood. Check property listings to determine average market value of your neighbourhood, or ask your real estate agent for an opinion. Once you know your home’s potential price point, make decisions about how extensive your upgrades should be. Upgrade to a level that is appropriate to the value of your property and properties within your immediate area.
Consider all upgrades throughout the home when making choices on new ones. If you choose to install a high-end bathroom into an otherwise dated home, you may not recoup its cost. Conversely, a lower-quality upgrade may disappoint potential buyers if the renovations are not in keeping with those throughout the house. Let your home, as a whole package, guide decisions on the level of new improvements.
Consider your individual financial picture. It’s not uncommon for homeowners to borrow to make home improvements. Lower interest loans for home renovations are often available since lenders view that you are adding value to your real estate investment. However, if you are borrowing and can’t pay back in a timely fashion, then that $30,000 kitchen upgrade may not be wise.
Preserving and improving the value of your home is within the control of every homeowner.You can learn more at www. royallepage.ca.