When a house is put up for sale, it is often necessary to complete a few renovation projects, especially if the house has been on the market for a long time and you’ve had several visitors but no serious offers. Even when you only have a small budget, certain specific improvements can make a big difference, increasing the value of the house along the way.
The first rule of home renovations is to always take into account the basic value of your property. Future buyers don’t expect a $200 000 house to have the same attributes as a $400 000 house. Therefore, when you start to carry out the renovation projects, in order to pocket as much money as possible when you sell the house, you will have to measure out your spending.
Here are 3 renovation tips to sell your house more quickly
1) Renovating before selling your house: get the advice of an expert
When you start to figure out which renovation projects should be done at your house, it’s best to contact a specialist. They will be able to tell you exactly what should be done. They will also give you an estimate of the budget.
We often tend to imagine that these improvements will be expensive. In reality, the main goal is to restore the house’s cachet, not to give it a complete makeover.
2) Renovation projects to renew the home
Before you start anything, you must know that some renovations are more profitable than others. Specialists agree that the main renovation projects to complete for your house to gain value are paint, kitchen renovations and bathroom renovations. You must pay special attention to the kitchen and bathroom, as they are the two rooms that are most scrutinized by potential buyers. For more information about renovation prices in these rooms, check out our articles: “Price guide: bathroom renovation project” and “Price guide: Kitchen renovations”.
Depending on the types of improvements that you will do, know that the percentage of the invested money that you will retrieve will vary according to a few factors.
3) Which renovation projects are the most profitable to add to the home's resale value?
Depending on the renovations you make, be aware that the percentage of the money you invest in resale will vary.
The most profitable renovation projects that add value to your house:
- Bathroom: 75 to 100%
- Kitchen: 75 to 100%
- Interior or exterior paint: 50 to 100%
Renovation projects with an average return on investment:
- Renovating the roof: 50 to 80%
- Replacing the furnace or the heating system: 50 to 80%
- Finishing the basement: 50 to 75%
- Adding a family room: 50 to 75%
- Installing a fireplace: 50 to 75%
- Installing hardwood floors: 50 to 75%
- Adding a garage: 50 to 75%
- Replacing the doors and windows: 50 to 75%
- Adding a deck: 50 to 75%
- Central air conditioning: 25 to 75%
Renovation projects that produce the smallest return on investment:
- Landscaping: 25 to 50%
- Concrete paving in front of the garage: 25 to 50%
- Asphalt paving in front of the garage: 25 to 50%
- Fence: 25 to 50%
- Pool: 10 to 40%
- Light shaft: 0 to 25%
Source: Appraisal Institute of Canada
In most cases, painting the house is an obligation. If you’ve been living there for a few years, chances are that you painted the rooms according to your taste. However, potential buyers might not share the same tastes as you. Not only do the colours have a huge impact on how the house looks, but they will also bring up strong emotions with potential buyers. When you repaint your house, remember that bright colours won’t make the sale easier; always favour neutral shades.
3 rules to follow to increase your chances of selling
- Only spend time and money on things that will truly contribute to improving your chances of selling the house.
- Potential buyers want to know about the building’s structure. No matter how nice the interior decoration, people will not want to buy the house if the structure is in bad shape.
- Make sure that your house is clean, that the building’s bones are in a good state and that it looks neutral. In doing so, you will attract a wider set of potential buyers.
Home staging: is it worth it when trying to sell a house?
Home staging can be an asset or an alternative to renovations done to improve the appearance of your home for visitors. Some interior designers are specialized in home staging and will offer excellent services.
To find out more about how they work and their average rates, check out the article: Working with an interior designer: yes or no?
Looking for something else? Search here!
