Home Renovations That Pay Off
The realtor wishes to remain anonymous, but her message is echoed by other agents in Metro Vancouver’s sudden buyers’ market. Her concern? Ugly renovations. “A buyer’s first impression is `I don’t want to go any further’ into the house. They won’t get beyond the front entrance,” said the veteran realtor. Quality upgrades can add value to a home, she explained candidly, but shoppers are easily turned off by badly executed projects. The listed price can drop accordingly. Errors are especially onerous in highly visible glamour rooms such as kitchens and bathrooms, or at the front entrance. Even minor miscues can have a negative effect on buyers. So before you power up your hand tools, consider this: Sellers risk thousands of dollars of their asking price because even little errors may cause buyers to turn tail. Their perception is the seller’s reality: If one thing is wrong, are other problems far behind? So how can a homeowner add real value without going broke? We talked to realtors, contractors and appraisers and, perhaps surprisingly, found that often the least expensive work can actually pay off the most on sale day. For
do-it-yourselfers, the key is to only tackle work that is easy to handle, or that you are extremely good at. “Renovations offer a relatively affordable means to boost the value of a home,” said Lisa da Rocha, vice president, marketing and sales, Royal LePage Real Estate Services. “Do-it-yourself tasks such as painting walls, changing cupboard knobs or laying new flooring will make a house not only more appealing to buyers, but also offer a great return on investment.” Vancouver-based real estate consultant Ozzie Jurock calls these “lipstick” renovations. Things like new street address numbers, minor landscaping, a fresh coat of paint and serious cleaning, he says, pay off better than an expensive renovation come sale day. There is hope for even homeowners on a tight budget, or who have the skills to personally tackle a spruce up. According to a survey of realtors and appraisers by Royal Lepage, the following are the top five smaller projects for the best return on investment.
1. Paint:
Adding a new coat of paint can freshen up a house and make the interior or exterior look like new. For homeowners looking to sell in the near term, neutral colours are most preferred.
2. Hardwood floors:
If genuine hardwood exceeds budgets, laminate flooring works well. Buyers like to see hard floors throughout, so try to lay down laminate in dining rooms, living rooms and even in bedrooms.
3. Lighting:
Old or standard-grade light fixtures and cover plates can date a house. To modernize, install new light fixtures. Remember to go green and use compact fl uorescent light bulbs where possible.
4. Front lawn:
To increase curb appeal and entice buyers ensure front lawns are tidy and gardening is minimal. While there is no need to go overboard, adding some standard shrubs and fl owers will make a home more inviting.
5. Kitchen upgrade:
Replace the cabinet knobs with more modern styles. Repaint the cabinets. Install a modern new faucet set and, if you can do it on your budget, upgrade to stainless steel appliances including a new range hood. If you are hiring a professional contractor, the experts say, concentrate on the bathroom, kitchen and entry way for the maximum return on investment. The realtors and appraisers all agree that any work must be of a high standard. “If it won’t be done right, don’t even start,” advised one Vancouver realtor.