With TV shows such as The Block and Reno Rumble gaining immense popularity in the last few years, many homeowners have been inspired to carry out their own makeovers and add value to their homes.
A question our sales team at York Realty often get asked is “should we renovate before we put our home on the market?”. Sellers are often under the impression that if they extensively renovate their home, they’ll be able to make a tidy profit when it comes time to sell.
While renovating often does add value to a property, many sellers overcapitalise on their renovations. Improvements can add value; however, the outlay can often exceed the return.
For example, major renovations such as kitchens and bathrooms can cost anywhere between $10,000 to $30,000. While it may add some value to your home, you are unlikely to recuperate, let alone double, the costs and efforts that were involved with the improvements.
It’s important to acknowledge that lifestyle improvements are very different from pre-sale renovations. Adding renovations such as a pool or deck to be used throughout the years can be beneficial for your family’s lifestyle and therefore it is money well spent. However, if you intend to add a pool or a deck with only the intention of making profit, you may be sorely disappointed. It’s also important to remember that everyone has different tastes – a buyer that loves everything else may have no use for the pool that you’ve spent thousands on installing.
While properties often need repair and maintenance to keep them looking their best, this should not be confused with large renovation projects. Your home should be presented well in order to achieve the best price possible – but there is no need to get carried away. The longer a property is kept, the greater chance there is of recuperating the value of the improvements. If a property is sold soon after a renovation, the likelihood of regaining the full financial costs are minimal.