When you do renovations, one thing to keep in mind is whether or not what you are doing is adding good value to your home, or potentially lowering it. On our podcast, All Things Renovation, we talked to Vancouver realtor Roland Kym to find out more about how renovations affect the value of your home. Here’s a summary of what we learned from him.
Is it still true that kitchen and bathroom renovations add value to your home?
Definitely, these are still the marquee areas that people spend time in. One of the biggest differences now is that it’s not automatic anymore that you can spend a certain amount of money and get that same amount back, plus more if you’re doing a quick turnaround in sale. However, there’s been a shift where more clients are renovating earlier in their homeownership cycle, living in it, and enjoying it. They view it more as an accent to selling their home rather than focusing on recouping the money that they spent.
People still like large, spa-like bathrooms. However, there are mixed feelings about bathtubs versus showers. If you have the space, the opportunity and the budget, the perfect balance would be installing both.
Is there a timeline on how soon you should renovate before selling?
Renovations keep a timeless and current look for about three to five years. After that, things start to look dated. The wear and tear on your home makes a difference too, as well as the maintenance.
What should people do to make their homes more attractive to buyers?
The easiest properties to sell are turnkey properties. This is a fully renovated home or apartment building that an investor can purchase and immediately rent out. The extreme opposites are homes that are dumps. The confusing area is in the middle because homes that are really well kept, but are dated. They might show well, but still cost as much to renovate as a home that has been really worn in. It’s also harder for buyers to see the little things that they could improve on in a home that has been really well kept.
One of the mistakes that sellers make is that they modernize one room and leave the rest. In their minds, their home is worth its original amount plus what they spent on the renovation. But this puts a microscope on the rest of the house. The buyer that comes through may love the kitchen but will dismiss the amount that was spent on renovating it. They will likely wonder why the rest of the house wasn’t done.
Sellers should consider doing a comprehensive update to elevate the look of the house as a whole. This can include new paint, new baseboards, new passage doors into each room and a change out the curtains, etc.
What do you see as trends that buyers are requesting?
- EV chargers are coming up more frequently, even with people who don’t yet own an electric vehicle. They often wonder if a property is already set up for one or if it has the electrical capacity for a fast charger.
- This past year, during the pandemic, hot tubs and pools have been a big topic of conversation.
- Natural gas is increasingly popular outside for BBQs
- People are putting more value on properties that still have gas fireplaces inside. Most new fireplaces are now electric. Wood-burning fireplaces can no longer be installed, and are very exciting to many buyers.
If someone is looking to buy a property that needs renovating, would doing a luxury renovation add a lot of value, or would doing a good value-for-dollar renovation be enough and add value later?
People often overspend on renovations, because they don’t have work backwards from an end budget. A good value-for-dollar renovation is a safe one. You’ve just done enough that everyone sees brand new when they walk in, and they love it. If you live in it for a number of years, you get joy out of it. As opposed to looking for the buyer to give you full credit for what you’ve spent.
Really think about what your longer range plans are. If you are planning on selling soon, choose tiles and fixtures that are inoffensive, even if they’re “boring” like subway tiles.
To listen to the full interview and see the show notes, visit www.AllThingsRenovation.com or visit www.woodbeart.com and click on the the podcast page.
