PEI Real Estate Report - Investing in Your Home
Now might not be your time to buy or sell but you may be thinking about ways to increase your properties value with some updates. There are many things to consider when planning to renovate or update your home, particularly if you intend to sell your home in the future.
Where to start?
Most industry professionals would agree that in the eyes of the purchaser, the kitchen and bathrooms are the most important rooms to update. If your home is dated, focus your attention on counter tops and cabinet doors. If your cabinets are dated but in good condition, you may be able to paint them and add new hardware with good results or reface them by adding new doors. You needn't go to the expense of granite counter tops to bring your kitchen up to date. There are many attractive laminate choices on the market that are inexpensive and current. One of the fastest, most impactful and inexpensive improvements is to paint. For some more great ideas on ways to freshen and update your home check out this article from Style at Home, 10 Cheap Home Selling Tips.
When to stop?
Keep in mind when doing renovations that you can actually upgrade your home too much in terms of seeing a return on your investment when selling. Be cognisant of comparable properties that have sold in your neighborhood. These sold properties will act as a pricing benchmark for potential buyers and create a threshold that buyers may not go far beyond. When you're budgeting for your renovations, factor in the cost to do the work, the projected increase to the value of your home post-reno, combined with a realistic price you can get for your home when the reno is done. How does it all shake out...will you see a profit? It's great to have the nicest home on the block but don't outgrow your neighborhood. For instance, if you upgrade your home with granite counters, swimming pool, high end fixtures and appliances, your now $400,000 home may be difficult to sell in a neighborhood where the average home is selling for $200,000.
If you are planning renovations that go beyond cosmetic, perhaps a retrofit reno to increase your homes energy efficiency, you should check out the Canada Mortgage and Housing Corporation website for information on rebates and suggested projects.
Do you have more questions about this topic? Our REALTORS are here to help you. If you would like more info on this or other real estate topics go to www.5662121.com and join us on facebook where we discuss in more detail.
Posted by Joel Ives
on June 16, 2011