Home Renovation
Before Listing For Sale?

A home renovation can be expensive. So, should you consider investing in home improvements before listing it for sale?

Yes and No

It would be wise to perform some renovation if your property is substandard. If you've not been making regular improvements over the years, then it's safe to assume it's at least 'tired', if not in desperate need of some tender loving care.

Things Wear Out

If the mechanical systems, like the furnace and air conditioning, are nearing the end of their lifespan, be prepared for a lower sale price to reflect the cost of having them replaced. The same goes for old windows and doors, plumbing fixtures, electrical panel and kitchen and bathroom cabinetry.

Has the carpet seen better days? Is the hardwood flooring scratched and worn? Is there any damage to walls and ceilings? Are there water stains anywhere from old plumbing or roof leaks? Is the basement recreation room finished without insulation and with old-style paneling and vinyl-asbestos floor tiles that were trendy at the same time as the Ford Edsel?

On the exterior, is the cladding maintenance-free, or does it need painting? Aluminum eaves, soffits and fascia, or the original plywood? How are the roof shingles? Is the garage door in good condition? Any cracks in the masonry? And how's the landscaping? Does it show pride of ownership?

These are all things to consider prior to listing your home for sale.

If you've called your place home for a very long time, it might pay to invest a few thousand dollars into basic home renovation to improve home market value. Ask your REALTOR® to investigate the property value of basically comparable homes in your neighbourhood so that you can make an educated decision. And ask your REALTOR® for some objective advice.

How much is too much?

It's highly likely that whatever amount you invest in home renovation, you'll recover at least some of it. However, if you decide to list your property without spending a dime, be prepared for very low offers, if any, until you reduce the ask price. And even after you reduce the list price, you'll still likely get even lower offers, if for no other reason than having been on the real estate market for an extended period of time.

There'll be two types of buyers who might express interest in your property. One is searching for an affordable home to live in and renovate themselves. They'll probably have a minimum down payment, and will justify offering on your 'fixer-upper' if they can buy it cheap enough. The second group will be a buyer/investor who's looking for a steal, and simply won't pay very much for your home because they plan to 'fix it and flip it'. So, their offer would be even lower than that of the first type.

In either case, expect a ...

Low Sale Price

... at least a lot lower than those of comparable homes on your street in better condition.

If you do a house renovation, the number of potential buyers will be greater since your home will appeal to the majority who prefer to avoid the time and expense of home renovation.

There are many projects you can perform to improve property value, and avoid spending tons of money. To learn more about what you can do to prepare your home for market, including minor projects for home renovation, click here.

So, to answer your question ...

Yes

It's a good idea to perform at least some minor home renovation before listing your property for sale. And ...

No

... if you've regularly done home renovation over the years, and maintained it in top condition.

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