Ten things to consider when renovating your home for a higher resale value

If you want to sell your home, it’s likely you’re also thinking about what you can do to up its value.

Through Canada’s new housing rebate, you’ll be able to recuperate some of the GST/HST you pay throughout construction. The changes you make are important and since the Canadian housing market is still sizzling, we spoke to Mark Ashton, the owner of Ashton Renovations, on how best to proceed:

Get an inspector

You want to get an inspector before anything else. You don’t want your basement to be leaking or your home to have structural, heating, electrical or plumbing issues. It’ll all be taken in by the buyer, so when you do market your home, you’ll be able to advertise the fact that it has been inspected. If you don’t make the changes necessary to pass an inspection, a buyer will usually hold it against the seller to negotiate for a lower price.

When to just sell

It’s important to speak with both your real estate agent and contractor to find out the value of your home and which improvements are financially feasible. But you need to be aware of your home’s circumstances. If you’re selling a bungalow near Avenue Road and Wilson Avenue, it’s likely it will ripped down regardless, making any renovations irrelevant. But if you’re selling an old home in Scarborough, north Toronto or downtown, it’s worth updating certain aspects to appeal to a general buyer.

Home automation

From voice activated smart lighting to a keypad on your door that can be controlled from your phone, there are simple additions that will add value to your home; spending $2,000 on smart home technology can conceivably add $20,000 in perceived value. Because the technology is new, people may view it as expensive and complicated. But once explained, it’s quite easy to use and understand its value in your day-to-day routine.

What’s worth renovating most

Kitchens and bathrooms will allow you to get the most money back in terms of resale value, but they need to be done right. These are areas of the home that feature appliances that are used everyday. A bathroom renovation in Toronto (with its old plumbing), can cost in the mid- $20,000 range, while in York Region you’ll be spending around $15,000 to $20,000. Kitchen renovations start at around $40,000, but could be a bit less expensive if you’re looking to simply change your cabinets. These changes have seen an added resale value of 75 to 100 per cent.

What should you stay away from?

There’s little reason to renovate your basement and living space, or to change the flooring if you’re simply looking to sell your home. These areas usually involve someone’s personal taste. So, they shouldn’t be cheap and cheerful just to sell the home because the buyer will notice.

Wow factors

If you don’t want the new owner to rip out your hard work, but instead find value in your renovations, you need to include “wow factors”. These should be in the kitchen and bathroom, with appliances such as a heated floor and towel rack, thermostatic shower valve, or even a curbless shower to enhance safety.

Home vs. condo

Kitchen and bathroom renovations may pay off even more in condos, where buyers are expecting a move-in-ready product. With houses, there’s the outside structure and a lot to consider. But the condo is protected, so the main features to consider are interior improvements.

A major change that isn’t so major

Ripping out the dividing wall in your kitchen is a popular and strategic move that homeowners are using to create an open space. It’s also not as big of a deal as people might think. To take out a structured wall, you can expect a renovation cost of $6,000, while a partitioned wall will run you around $2,500.

Understand your situation

You need to be careful with heavy investments. The more expensive your home, the more room you have for error. But with a lesser value home, it’s more likely that the buyer will be more sensitive to the price. It’s important that you make sure your renovations fit the home because certain improvements may not be appropriate. For example, spending $100,000 for a kitchen renovation in a $500,000 home.

Importance of curb appeal

Curb appeal is still important. You want to ensure your home is clean and safe, to provide a welcoming vibe. That could mean more costly improvements such as new doors and windows, or a fresh layer of paint. Indoors, you want your home to feel uncluttered, while adding paintings to the wall is a nice touch. But, more importantly, you want it to be safe to inhabit. You can’t have steps falling part, you need handrails and you need confidence in any renovations that have taken place.

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