Home prices continue to steadily rise, which is great news for homeowners, especially parties who were able to enter the market before prices began to skyrocket in 2015—climbing 15% annually and by as much as 30 to 40 percent in some red-hot markets (McLeans, 2019).
With evaluations higher than the original price tag, homeowners now face the question of what to do with this increased equity, especially as their home begins to age. Should they renovate to suit their changing needs or buy new?
How to know if a home renovation right for you
Renovations can be costly, take time and can cause stress if not handled professionally. Chances are you’ve heard a nightmare story from a friend or neighbor about a renovation that had the wishing they’d purchased a new home instead of going through what they went through. But we promise that not all renovations are like this; they should be fun, exciting and easy when you have the right contractor on your team.
There are many benefits to a home renovation, including increasing the home’s value, improving functionality, refreshing the design, making the home more comfortable and optimizing efficiencies to reduce running costs to name a few. Truth be told, your current home can offer a lot more than you’re currently getting out of it.
Often the difficulty lies not only in being able to see the potential your home has but also in identifying the correct renovation scope. For example, should you turn a 4 bedroom into a 3 bedroom with a walk-in closet? And what can different budget levels bring to you? Hiring a professional can help you align your renovation to your needs as well as the markets to ensure your investment continues to grow.
According to Statistics Canada (2016), the average home value in Guelph was $463,729 in 2016. The average home renovation, if done correctly can add an average of $250,000 to the value of your home and can take 8-12 weeks.
When considering a renovation you should consider your future needs but also future buyers needs. Multigenerational households are the fastest type of household, easily linked to an aging population along with the cost to purchase a home. If you have space, have you thought of building an apartment or nanny suite? Guelph is a particularly great place to have a basement apartment or rentable unit if not to share with your relatives, the high population of students makes for an easy rental situation.
But what if your current house is no longer for you? As baby boomers retire and children leave the nest, or as families grow and babies are born, you may instead be faced with a house that just doesn’t ‘fit’.
Should I renovate my home before selling?
Selling your home may be the route you wish to take to suit your changing needs. But keep in mind that this option doesn’t come without steep real estate fees and other costs associated with moving. At the end of the day, a renovate may still be on the to-do list in order to maximize your selling price.
Before you put your house on the market, make sure to chat not only with a real estate agent but also with a contractor to see if investing time and money up front could lead to a higher return down the road. We’ve seen homeowners receive a return of 5x their renovation cost.
Let us help you make the decision that’s right for you. Request a quote and consultation here.