By Ali Larsen
In terms of home renovations that provide a good return on investment, the first rooms that often come to mind are kitchens and bathrooms. But, renovating these areas of your home won’t always return a dollar for dollar increase in sales price. While turning your old, dated kitchen into a glossy and bright centerpiece of your home will certainly improve your enjoyment of your home, it’s not always clear whether you should invest tens of thousands of dollars in a kitchen renovation just before listing.
Before you dive into a home renovation to boost the selling price of your property, take a peek below.
Did your neighbours renovate?
What’s typical for comparable homes in your neighbourhood. You can get a feel for the average home in your neighbourhood by researching real estate listings for homes of a similar age and square footage. Just ask and we can send you listing photos of homes around you that you can flip through! Ideally, you’d find one or two that have renovated kitchens and one or two with older, more lived-in kitchens. Compare their listing or selling prices to the listing price you have in mind.
Don’t overdo it!
While your initial research may support the idea of renovating your kitchen, it’s important not to over-improve your home. Don’t invest in granite if the homes in your neighbourhood only have laminate countertops. Don’t spring for a double wide gas range with pot filler if the homes around you have builder basic stainless steel. These improvements won’t translate into dollars on the sale price, and will likely blow any hope you had of seeing a return on your investment. There are times when trailblazing is smart – this is usually not one of them.
Go for mass appeal - We know - it's boring!
Keep in mind that renovating a kitchen for resale is very different from a home renovation for your personal enjoyment. The point of this renovation is to appeal to a wide variety of potential buyers, so it’s important to stick to choices that will appeal to the mass market. Choices like cabinet colour, appliance finishes, and flooring will make or break your ROI.
Small projects, big impact
Contrary to what some television shows would suggest, home renovations don’t have to be “go big or go home.” If you don’t have the budget for a big reno or your market research suggests a full-scale remodel might not be the best idea, you can still improve the selling price of your home by doing small-scale updates. Smaller projects like refacing your kitchen cabinets or updating your backsplash may have the transformative effect you’re hoping for without the big price tag.
Conclusion
If you’re confident that upgrading your kitchen or bathroom is an important part of your selling strategy, be sure to focus on cosmetic improvements. These are the improvements potential buyers are sure to notice, and this is what will drive the increased price. Improvements such replacing old flooring, upgrading appliances, and painting the walls are a good place to start. Avoid rearranging the kitchen’s layout as the cost of rerouting power and plumbing is expensive and may not even be noticed by potential buyers. Only make these types of changes if there are serious issues with the existing layout that could affect your sale.
Based on this research, determine (with the help of me!) if your home will appreciate in value after the renovation, or if it will seem over-priced relative to other homes in your neighbourhood.
These renovations include painting the whole home with neutral, buyer-friendly colours; changing out old gold light fixtures and door handles; and updating light switches to bright white instead of almond. These small changes will make your home more buyer-friendly without costing you tens of thousands of dollars.
Are you considering updating your kitchen prior to selling? If so, let’s schedule a time to chat. I would love to see what you have in mind!
Thanks,