How much should you be spending on renovations to sell your home?

You’ve decided you’re going to sell your house, but after getting an estimate on your property, you’re considering spending some money to raise the value. Should you be investing large sums of money to renovate entire floors of your house, or should you sell it as is to save that money for other aspects of the process? The straight answer: it depends.

There’s no doubt that investing money into your home can raise its value. The question that you should really be asking yourself isn’t how much you should be spending, but rather when and what.

Markets fluctuate constantly, leading to large variations in property values, but also the time that it takes to find a buyer. As a seller, if you want to get the best price for your home, you have to go in knowing that your property may not sell immediately. Timing can be impacted by everything from local taxes, the national market, employment rates, trending neighbourhoods, and even the month of the year. If you invest thousands of dollars into updating your home to increase its value, you have to be comfortable knowing that you may not see a return on that investment for some time.

You’ve likely heard this before, but everything from the location of the space within your home, to the materials used can affect how buyers will interpret its value. Many people dream of renovating their basement. When buying though, the basement is one of the lowest value spaces. For buyers, it’s a blank canvas. A potential project that can grow with them. Whereas bathrooms not only hold their value, but often far outweigh living spaces when comparing value by square footage.

So what can you take away from this? These may seem like fairly obvious considerations, but those are just two factors on a list of hundreds that can help you determine what to invest in. The best way to make those decisions is to consult an expert, and work together to determine what’s best for you.

Knowing the trends for staging, what will bring in the most value for the lowest investment, and helping you to determine a reasonable investment for returns are all within the scope of a realtor’s expertise. Your realtor should be helping you from the very beginning to help you to feel comfortable with the money that you are spending, and to keep your expectations in check. They can walk you through all of your options, using tiers to determine what fits your schedule and budget. Replacing your interior door knobs can bring an entire floor together, completely changing the initial impression of potential buyers. It may not be as drastic as installing a new quartz countertop, but it also doesn’t require installing a new backsplash, and new stools. For the investment, you’ll get a much higher return on the doorknobs in this hypothetical scenario. Perhaps both should be done, but your realtor is there to give you as many options to improve your investment and experience as possible. Trusting that they will respect your limits, you’ll get the best value for your home without breaking the bank.

You don’t need to have an exact dollar amount, or even a percentage in mind when considering investing in your property. You need to know what you’re comfortable with, what you’re looking to get out of the sale of your home, and that you have someone on your team that will be with you through the entire process.

Still have questions? Let’s chat. Send me an email at ryan@ryanconway.ca