Renovating Before Selling Your Home: What You Need To Know

If you’ve made the decision to sell your home, you may be asking yourself if you should renovate beforehand—it’s a question we get asked often. The answer isn’t as simple as yes or no because it is dependent on each individual’s situation.  

We’ve worked with clients in the past who have seen incredible results from renovating before selling. After renovating a home in South Mississauga, it sold for 30% over asking in less than a week.

There are some things to keep in mind if you are considering renovating your home before you put it on the market. We’re going to breakdown everything you need to know before undertaking any major renovations to your soon-to-be-sold home.

Treat your home like a product

You have a lot of emotional attachments to your home—you’ve lived your life there for a number of years, it’s only natural. In order to sell your home and make a profit, you need to understand that your house is a product and it will benefit to treat it as such.

Do the math

If the only reason you are considering renovating your home is to increase the sales price, you are going to want to crunch some numbers before you commit to any large-scale renovations. 

You need to weigh the cost of the renovation project against the assumed market value of the home after the renovations are completed. This simple math formula will help you determine if you will be able to earn a profit from your renovation.

What is the market telling you?

This is a great time to lean on your realtor. If it is a seller’s market, it may be in your best interest to renovate your home to help increase the overall value.

Who is looking to buy a home like yours?

Define the kind of person that will be interested in your home and brainstorm what they might want from the space. If you have a 4-bedroom home in a quiet neighbourhood, you may be looking to attract families. If you have a downtown 1-bedroom + den condo, you may be looking to attract single professionals. 

What do those demographics want from a space? If your home doesn't tick off everything that you’d think of as “essentials” for your target demographic, you may consider undertaking a project to fulfill those needs.

Is your home “move-in ready”?

Most buyers are looking for a home that is ready to move into, as is. In fact, 51% of home buyers were looking to purchase a home that didn’t need any major renovations. If your home is outdated, or there are key elements that clearly would be renovated once sold, it may be worth the investment to renovate your home. 

Remember that bathrooms and kitchens are the most expensive areas to renovate, but they also provide the biggest return on investment.

Don’t rely on your personal tastes

You may have a very defined aesthetic in your home, but if you are renovating to sell you need to design for the masses. 

Speak to your realtor or hire an interior designer to help you really flush out what kind of design helps you sell quickly and for a higher price. 

Never underestimate a good coat of paint

A fresh coat of paint in a contemporary colour is a great way to spruce up your home and increase the value without putting in too much effort. Be sure to pick a colour that is neutral enough that your potential buyers can visualize their own belongings in the home.

Photo by Jesse Roberts on Unsplash