How to increase the resale value of your home
Many sellers wonder how they can increase the value of their property before reselling it when the time is ripe.
We get it, real estate is one of the biggest investments one can make. By reading this article, you will find out some tips and tricks that will significantly increase the value of your property. Ready? Here we go!
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1. The Importance of Maintenance
Before starting any major renovations, make sure your property is in good condition. If needed, clean and organize it so that it’s spotless. If done on a regular basis, maintenance will prevent your property from depreciating, which could result in unexpected expenses when the time comes to sell it[1] .
You might want to check and repair the following, if necessary[2] :
- Replacing the roof
- Upgrading the heating and the air conditioning system
- Replacing the doors and the windows
- Repair cracks in the foundation
It may also be a good idea to keep a record of any major work that has been done and to keep all the supporting documentation, such as invoices and warranties, so you can present them to potential buyers and their home inspector[3] .
2. Why Renovate?
If you really want to increase the value of your property and improve your comfort while living in it, renovations are the way to go! They allow you to update your property and make it more functional by adding, for example, an extension.
The most common renovations are:
- Restructuring of the kitchen
- Upgrading the main bathroom
- Adding a bedroom or an office
- Building a garage
According to the Appraisal Institute of Canada (AIC), renovating a bathroom would return between 50% and 100% of the money invested in it, this changes to 75% to 100% for a kitchen[4]
.
Furthermore, according to the results of a 2018 Canada-wide survey of more than 750 Royal LePage real estate professionals, renovating a kitchen could increase the total value of a property by more than 12.5%[5]
.
2.1 Updating the Interior of your Property
Are you thinking about improving your property, but you don’t know where to start? Doing small renovations with quality materials can have a huge impact on the value of your property, here are some examples of what you can do[6] :
- Resurfacing
- Changing the kitchen and bathroom faucets
- Replacing the light fixtures
- Removing the wallpaper
- Painting the walls, a neutral colour
- Removing the carpet and fixing up the damaged floors
Regardless of the room you want to transform, you should try to make choices that are either neutral or in harmony with the rest of the house. With a bit of research, you’ll be able to make great choices! An interior designer might be able to help you in your adventure by adding the, oh so desired, wow! effect on a budget!
2.2 Investing in Outdoor Spaces
Mainly done for your own comfort, some exterior improvements can be really advantageous when it’s time to sell. This is particularly true for landscaping, building a new deck, and adding a fenced-in garden. As for the pool, it is the subject of much debate, contrary to popular belief, a pool does not increase the value of your property and could actually hinder its sale because of maintenance costs and the dangers of drowning[7] . Quant à la question de la piscine, elle suscite de nombreux débats, car contrairement à la croyance populaire, celle-ci n’augmentera pas la valeur de votre propriété et pourrait nuire à la vente en raison des coûts relatifs à l’entretien et des dangers liés à la noyade[8] .
3. What About its Net Worth?
Is increasing the market value of your home a long-term project? It’s possible to increase the net worth of your home, i.e., the difference between what it’s worth — the market value — and what you have already invested into it, by making additional payments to your mortgage[9]
. This will allow you to quickly pay off your mortgage balance, which will reduce the amortization period, save yourself some of the interest, and increase the net worth of your home. However, some financial institutions impose various conditions
on this, so check with them first to make sure you won’t get penalized.
In any case, the extent of the work done should be evaluated according to the value of your home and its market price to ensure that you can recover your investment[10] . If you are still undecided about the best strategy to adopt, consult one of our real estate brokers to help you make the best choice!
Documents to Prepare When Selling Your Home
The Importance of Pre-Purchase Inspections
Spring Cleaning: Have You Made a Plan?[1] https://www.journaldemontreal.com/2021/09/25/comment-accroitre-la-valeur-dune-propriete