Realtors are often asked about what renovations need to be done to maximize resale value. In many cases I will tell my clients that other than some paint to freshen up things and a good declutter it is better to not spend money on a property simply for resale. Many Muskoka home and cottage renovations will only net a small portion of the cost to complete them. However that is not always the case, especially when a home owner intends to live in and enjoy the home for several years before selling. There are some renovations that will definitely add value to resale and some that will not.
My 5 Do’s
1. Kitchens. Updating your tired kitchen is one of the most lucrative methods of increasing the value of your home; however, there are some things to consider when planning a kitchen remodel.
It is important when making design decisions and selections for plumbing fixtures, appliances, cabinets and countertop materials, to determine whether you are designing things to suit your own taste or choosing the best design for a return on your investment. Either option is perfectly acceptable, but you should understand that your design may not be the most effective one for making a profit. Try to strike a balance between the two that you can feel good about.
For example, using the existing kitchen layout and affordable cosmetic materials is a sure way to keep the cost of remodelling your kitchen manageable. When you start tearing out walls, bumping out the exterior home footprint to gain a few feet, or moving plumbing fixtures and appliances, the cost of the remodel will jump and your dollars will be less efficiently spent.
2. Adding living space. A straightforward addition of a new living space is typically a very good investment providing your property is in an area where the addition will not make you the “Cadillac on Chevy row”. That is, do not over improve the size of your property for the neighbourhood!
Larger square footage usually equals and increases your home’s value if the increase gives you additional rooms rather than bigger existing ones. This is NOT a small project, so if you are going to incur these expenses, it’s important to get some good advice on the effectiveness of the improvement. Again remember that you may be planning to enjoy this space for some time before you sell, but do not be tempted to make it so customized to your needs that a buyer will not appreciate it when you are ready to move on.
3. Curb appeal. You cannot make a second first impression! The front approach to your home or cottage is more than just a first impression; it is the only impression available to just about all of your home’s potential buyers.
Don’t despair, there are a number of very affordable things you can do to improve curb appeal, and a few more expensive ones that can likely pay off as well. Simply cleaning out overgrown brush and making a few new planting additions to your landscape can go a long way toward improving curb appeal. Making sure foot paths are level and have no loose stones is an inexpensive but vital improvement too. Repainting is another low-cost, high-impact improvement.
Bigger projects such as changing out old windows or the front door are things that potential buyers will notice and value. Occasionally more extensive renovations, such as added dormers and front porches, can prove wise, from an investment standpoint but you need to remember to not over improve for your neighbourhood.
4. Master suites. Home buying decisions are in the hands of adults, and while they will want to be sure there is adequate space for children and guests, most adults care about the environment where they sleep. Updating a master bedroom or remodeling and adding a new master suite is usually money well spent.
5. Bathrooms. We all notice bathrooms, and all the bathrooms are important in your home or cottage. However, priority should be placed on the powder room and master bath, followed by a guest bathroom and any other secondary baths.
The same rules apply to a bathroom renovation as to the kitchen. Cosmetic changes are a safe bet for getting a good return on your investment. If the tub is in good condition but a dated colour, it can be painted – white or bone is easy to co-ordinate with a new toilet and sink. Make sure that the room is freshly painted, the colours simple and contemporary and the tile in good shape… no nasty black grout!
My 5 Don’ts
1. Kids’ spaces. I do not want to be the Grinch here, but not all buyers will have children or children in the age group yours may be. Avoid creating specialty “Kid Zones” in your home and on your property. That rock climbing wall, which most kids would flock to, might actually be a negative to a buyer who sees no use for this feature and thinks only of the cost for removal. Make sure the spaces you create for your kids will pack up and leave when you do!
2. Pools. Backyard pools are loved by millions, and while this appreciation is well founded, they should be constructed for their many virtues that are NOT investment related.
In Muskoka where we have an abundance of waterfront to visit and enjoy and long hard winters, a pool is very unlikely to increase the value of your home as such, is unlikely to pay for itself. Given our short summer season, many buyers may perceive the pool as a negative with ongoing maintenance work and related expense, or a significant cost to remove.
3. Wine rooms. Currently a very popular item, the wine room may seem like a cool investment but unfortunately it is not a good one from a return perspective. It will capture the interest of only a very small percentage of potential buyers and wouldn’t appeal to someone who does not love wine. In fact it could represent a waste of space and a cost to retrofit, to many potential purchasers.
4. Removing features. Do not remove features for investment reasons. If you never use the fireplace in your basement, removing it might make perfect sense to you and your family. Just make sure you understand that the next homeowner might wish it were still there, and the money you spent demolishing the fireplace and reworking the space will not be reclaimed.
5. Minor additions. A small addition that results in the addition of a few square feet is very unlikely to increase your value. If you are not creating additional rooms but are simply expanding a bathroom or secondary bedroom you may be setting yourself up to lose money. The reason is simple. If you bump out a bedroom wall by a few feet, that bedroom might be much more comfortable for your personal use, but the cost of the foundation, roof, framing, drywall and finishing will be substantial for a small gain in square footage. Typically, a 3 bedroom 2,500 sq.ft. home will sell for very little more than a 3 bedroom 2,600 sq.ft. home when all the features and finishes are similar.
If you are thinking about a renovation of your Muskoa Home or Cottage, with resale in mind, I would be happy to meet with you and share my experience with the current market place. So please feel free to call me!