You could be trying to renovate your Calgary home for many different reasons. You might be extending the house because your family size increased, the surroundings are worn-out or you are finding the new colors and styles to be better than what you had before. Whatever the reason, you will want your renovations to pay off when you sell your house. Keeping in mind the current market trends, it would be much better not to spend money on major reconstruction.
Why Should you Renovate
Don’t do major renovations unless you really know what you are doing. You can never be sure which amenity will pay off. However, if you renovate because you need the change, the least that will come out of it is that you can enjoy it. A potential buyer may declare that they do not like the change and renovate it again. They would not be bothered by the amount of money you have spent for that particular renovation.
If you really want to make changes to attract buyers, try painting the house a nice colour, change the fixtures and move the furniture around. These minor cosmetic changes are less expensive and are not that risky. Try to balance home improvements. If you know that you will be living in a particular house for some time and will be selling it in the future once the kids move out, spend money on home renovations.
Nevertheless, make sure that the improvements will pay-off in the future. If you do not use the basement often, it is better that you leave it as it is and let the new owner decide what they want to do with it. We have compiled a list of home improvement initiatives that are likely to improve resale value in Calgary. Of course, these numbers are subject to change because there are a number of factors that determine these numbers:
• Minor kitchen remodelling: 125%
• Basement Remodelling: 98%
• Bathroom Addition: 96%
• Major Kitchen Remodelling: 92%
• Bathroom Remodelling: 90%
• Exterior Paint: 90%
• Master Bedroom Renovation: 86%
So, we see that home improvement initiatives with the kitchen and bathrooms pay off the most and are also the most enjoyable changes in your everyday life.
Low Return Home Improvements
Home improvement measures that involve major changes in the attic or basement usually yield low returns, unless you do something radical that would attract other buyers also. The risk of such a change is just as high as the promised return. For example, you might have a hot tub installed but not everyone is willing to pay extra for one. However if you can find a buyer who appreciates it, you can make good money.
Good Judgement is a Must
Before you decide on a home improvement venture, make sure that you have done your homework. Look at the renovations that your neighbours have carried out. You do not want to have a renovation project that is inconsistent with the ones done in the neighbourhood. There are some improvements that are popular with people and you will want to make sure that your improvements conform to those made in your community.
You should also keep the original design of your home in mind when you decide on an improvement. Be sure to use material and a style that is similar to the original construction. A hybrid home with new and old construction styles amalgamating may seem attractive and artistic to you, but most homebuyers are conservative and they might not understand the artistic vision that you have followed. It is better to be elegant and stylish than flamboyant and perky.
If you think that being flamboyant and bold makes you more comfortable, then go for it. Just remember, limit the flamboyance and boldness to fixtures, paint and furniture instead of taking it to the cabinets and windows. To have a good understanding of which home improvement method will pay off, you should look at the different variables listed below. These will give you a good idea of what you should consider when you are doing home improvements.
Type of Improvement
Small changes around the house can add up to more than originally thought. There will be a larger risk if the scope of home improvement is increased. It is important that you understand the type of people you will cater to and the things they want. Here is a list of changes that can make a huge difference and add value to your home:
• New doors
• Add or upgrade ceiling fans
• New electrical outlets and switches
• Fresh paint
• Stained deck and fence
• New light fixtures
• New hardware on kitchen cabinets
• Carpets cleaned
• Clean and depersonalize the whole house
Fad = Bad
Fashion changes every season and every year. What is supposed to be the hot and in thing today may become the biggest fashion mistake tomorrow. Casual entertaining is becoming popular and block parties and picnics in the park are no longer entertaining. If possible, add a deck to your home to allow guests to enjoy the casual dining experience.
Getting New Windows
Installing new windows to your home is not a great idea. Even if you tell the buyer that you recently upgraded the windows, it will not matter. This is unless you can explain how the new windows save heating costs and lower the electricity bills. However, if your windows are really old and shabby, replace them or repair them. Do not change windows just because you are selling the house.
Create New Space
You could be looking at a space that was poorly used before or a space where you think change would look great. Look at the design of the space before the functionality, basements do not need to look like game rooms or bars just because you are selling the house. Leave it empty; let the buyer decide what he wants to do with the basement, office space, study and solariums. If you really want to improve the space, keep it open to interpretation. For example you may use the basement as a game room but the buyer might decide to use it is as a family room.
Helping you Decide
Quite often clients are surprised to learn that it is easier to buy and sell rather than go through major remodelling. Call now for up to date Calgary real estate market information to help you make the right decision.