In some cities in North America it is currently a buyers market and in some cities it is definitely a sellers market. No matter where you are, the real estate market is busy again. Have you been hanging on to your home waiting for the market to recover so that you can sell your house for a decent price? Because we always want to get the most money that we can when we sell our homes, it is important to take a look around your home first to see what you could do to increase the value of your house.
Smart Renovation Tips to Increase the Value of Your Home
Finish Existing Space
Finishing existing space is a lot less expensive than adding an addition to your house.
If you have an unfinished basement or a roomy attic that is unfinished, consider renovating it to increase the livable square footage of your home.
Yes, it is true that a finished basement is not included in the total square footage when you list your house for sale, but you can emphasize in the description of your home that you have a fully finished basement. If you add a bathroom or an extra bedroom, make sure to promote that as well.
Make Sure Renovations Do Not Decrease the Value
If you purchased a three bedroom home, keep it as a three bedroom home. If you renovate the third bedroom and change it into a walk in closet, for example, the market value of your house will drop because you will now be listed as a two bedroom instead of a three bedroom. And more often than not, a three bedroom house is worth more money than a two bedroom is.
Families are drawn to houses with three or more bedrooms, and they tend to sell faster.
Upgrade Your Kitchen and Bathroom
Kitchens and bathrooms sell the house. Everyone knows that.
But what if you have a kitchen that looks like it hasn’t been updated in years? If you can invest some money to upgrade your kitchen and your bathroom you will definitely recoup that money when you sell it, as long as you do not over invest.
Replace the countertops, repaint your cupboard doors, add new handles, and consider replacing your appliances. Update your light fixtures with new inexpensive ones from a big box store.
The same list applies to your bathroom.
Add a fresh coat of paint in both rooms, and you are set.
Never Over Invest
Each neighbourhood has a specific price range. And if you build a million dollar mansion in a neighbourhood where the rest of the homes are selling for $400,000 or less, you probably won’t sell for a million.
The same goes for home renovations. If the homes in your area typically do not have high end appliances, granite counter tops and hardwood floors, and you add all of those items to your house as part of your renovation, you run the risk of not recouping your investment when you go to sell your house. Why? Because to recoup your investment you will probably have to list your house at a much higher price than the average listing price in your neighbourhood.
To avoid over investing, be very specific about what needs to be renovated and what can stay as is. And keep a close eye on your spending.
Choose Neutral Paint Colours
If you plan to paint your house before selling it, always choose neutral colours. You may love having a dark red bedroom or a dark green kitchen, but how many other people will love it? While you live there, decorate your home to please yourself. But when selling your house, always decorate to please potential buyers.
And the more buyers you attract the better chance you have of selling your house quickly.
Once you make a list of the renovations you would like to do to upgrade your house, go through your list and think about whether you should hire a professional to help you out. The last thing you want to do is to mess up something significant and then lose potential buyers because you receive a negative home inspection report due to your recent renovations.
Hiring professionals will definitely cost more but it will be well worth it.
If you need extra cash to finance your renovations your first thought may be to use a credit card. The problem with that is the high interest rate that most of them charge. Instead, consider a loan or your line of credit. They typically offer a much better interest rate.
Use Classic Fixtures Instead of Trendy Fixtures
When you shop for a new house what are some of the first things you notice when you walk through the front door? Those are the things that you need to renovate or at least tidy up in your own house before you list it for sale.
Things such as light fixtures, stair railings, blinds, and so on. If they look outdated you may lose a sale, or a buyer may offer you much less than your list price, which is always disappointing.
Skip the current trends and switch out any outdated fixtures with classic fixtures that people will always enjoy.
Clean, Clean, and Clean Again
The most inexpensive way to increase the value of your home is to clean it thoroughly from top to bottom. Wash in every corner that you may normally skip. Clean the windows, inside and out. Hide personal items such as makeup and blow dryers.
Clear off your kitchen counter tops and just accessorize with a few key pieces.
Take all that stuff off of your fridge, and file it away. Buyers want to see what a nice fridge you have, not a picture that your kid painted in school two years ago.
Before each showing of your home, or each open house, make your home as welcoming as possible and make sure it smells nice too. The more inviting it is the quicker it will sell.