PROUDLY CANADIAN
Why do you want to renovate?
Starting off with a generally recognized hard fact which may be disappointing is that in most instances, renovating a home does not add enough equity related value to your home that will justify the costs when you have sold the property.
Looking at the case of a first-time home buyer viewing your property their priority is getting the best deal possible for their down payment and the mortgage repayments they face each month. Do they really care if the paintwork needs refreshing, or the kitchen is not modern enough? Realistically, no, because this can be completed during the coming years.
Their main concern is how much they can save on the offer they make you. In fact, your un-renovated home is providing an opportunity for negotiation and attracting a wider range of buyers. This could result in a faster sale and a better bank balance. A potential buyer of your home in any event usually has their own idea of how they want the property to look. Therefore, by renovating are you not pre-empting the type of person you want to buy your house!
Generally speaking, you will probably come out of the sale better by negotiating a lower offer instead of spending your time, stress and money on possibly unnecessary renovations! In the generally recognized overpriced market of today, home buyers, especially first-time investors, are seeking value for their money. They want a property they can grow into and adapt to their specific needs.
Renovating for quality of life
Now, this section is a different ball game; because it concerns lifestyle and its quality and not money and profit. When you’re renovating a property to improve your quality of life, usually this means you are looking at improvements for the next 20-years. Therefore, this can be seen as justified renovating and a valid and worthwhile expense.
It should be recognized that this is not related to those renovating plans specially designed for what is known as “staging.” This is where a house is put up for sale with a small budget allocated to only necessary repairs and visual cosmetics. Also, it must be considered that in some instances, renovations may be required, just to get cash-strapped home buyers, first or otherwise, to make an offer!