Before you list your home for sale, you may be able to boost its value in several ways depending on your budget. Below is a guide meant to help you make decisions that are more likely to increase the resale value of your home.
- Keep high-end upgrades consistent. If you install imported floor tiles from Italy but you buy faucets from a department store, this can make your home look like a “work in progress”. Buyers may assume it will cost extra money to finish the job, and most buyers are looking for move-in ready homes with the same level of quality and value throughout the home.
- Make sure your home “fits” your neighbourhood’s structural aesthetic. Adding square footage to your home can help increase its resale value, but you need to be strategic so it looks like it still belongs on your street. If your neighbourhood features small one-storey homes, for example, building additional storeys on yours may not be a good idea. This is because buyers generally do not spend a lot of money on a home when the homes around it are smaller and cheaper – no matter how appealing the home is.
- Prioritize visual upgrades. Most buyers are more interested in a home’s curb side appeal and layout rather than whether the plumbing or heating was just replaced. Examples of this include a new roof, landscaped gardens, a paved driveway, and new appliances in the home. If you have an outdoor deck or balcony, a fresh staining or coat of paint may help, too.
- Expand the master suite. This is a great idea, but only if your home’s layout will allow it without sacrificing other important rooms – especially other bedrooms. For example, it is okay to downsize your already-spacious living room to get the job done. However, if you turn your 3-bedroom home into a 2-bedroom home with a larger master suite, this could hurt your resale value because it will be priced according to other 2-bedroom homes around you.
- Step up your flooring game. Carpets are made with dangerous chemicals, they can worsen allergies by trapping pet dander and dust, and they are challenging to keep clean. If rooms in your home have old wall-to-wall carpets, replace them with low-maintenance flooring options like bamboo, vinyl, hardwood, or linoleum. If your budget is slim, however, opt for brand new carpets made with durability in mind, and see what your local home renovation specialist has to say about today’s top choices for carpet colours. Polishing old wooden floors can also bring them back to life.
- Accessibility matters. Potential buyers may have physical limitations. By installing walk-in showers and comfort-height toilets, your home not only becomes an option for a broader range of buyers, but it could rank closer to their #1 spot as not every home will offer these features.
- Make it smart. Buyers now often use smartphones to control their environments. Consider installing smart thermostats, irrigation systems, and lighting. These three high-tech features are great because they can be controlled with (or without) a smartphone.
- Increase cost-efficiency. Properly sealed windows and LED lights can lower electricity costs.
- Paint! Homes with neutral-coloured rooms appeal more to prospective buyers, so consider applying a fresh coat of paint to walls, baseboards and doors that would otherwise stand out. Splashes of colour will not hurt, as long as they can be easily removed (i.e. throw pillows or a soft blanket on the corner of a bed). This is important because buyers want to imagine how they may personalize their next home, and a neutral palette is a great place to start.
- Refresh your kitchen. Invest in new stainless steel appliances, quartz countertops, backsplash and paint (remember how we said to opt for visual upgrades?). These are all inexpensive ways to make your kitchen look freshly coordinated and ready to cook in – a necessity for homebuyers.
- Make space for their life – including their mid-sized air fryer – in your home. If you have not yet closed the sale on your next home, put non-essential personal items in storage. Keep all remaining necessities clean and tidy, and store smaller plug-in appliances (like your toaster or hairstyling tools) in kitchen and bathroom cupboards when not in use. Presenting your home as a spacious environment will give prospective buyers a chance to feel like there is ample room for their belongings.
- Installing a swimming pool is a bad idea. This is a costly addition to any home, and it offers virtually zero return on investment. It will also decrease your home’s salability because families with young children will have safety concerns, and those leading busy lives may not be willing to maintain it.
This article may not look like it belongs on a financial planning firm’s website, however it all comes down to money saved — and money saved is our specialty. Statistics have shown that the average household with an FA for 15 years or more had asset values 131% higher than an average “comparable” household without a financial advisor. Maximize your assets; let us help you build an investment portfolio that is right for you.
Start the conversation here.