Even in the midst of winter many homeowners are already looking ahead to springtime and planning renovations in the hopes of increasing the value of their homes. However, many popular home renovation projects are not worth the money, and if done poorly they can even lower the value of your home. In some cases it is more profitable to sell your current home and buy a new one, and here are some points to consider when making this decision.
- The Neighbourhood – Do you like where you live? Does it have all the amenities you need? Does it have potential problems that could motivate you to move? Remember that you can fix a house but you can’t fix a neighbourhood.
- The Condition of Your Home – Not all homes are a good candidate for renovation. An older home with foundation issues or other major defects can be a nightmare to renovate, so before you commit to any major projects you need to conduct a thorough assessment of your home’s foundation.
- Money Talks – Does renovating your home make financial sense? Not only can renovations be very expensive, but there are also additional costs that we don’t often think about, such as temporary living expenses in case you need to leave your home for the duration of the renovations. Before deciding to move or stay, make sure that you take all potential costs into account.
- Zoning Regulations – The regulations regarding zoning change all the time and you need to be up-to-date on all of them before embarking on a major renovation project. If your home is an older one, new zoning regulations could be difficult to navigate as you try to bring all of your modifications and additions up to code.
- Home Value – If you want to increase the value of your home in the hopes of selling it in the future, keep in mind that not every renovation adds significant value. While mature trees and fencing will likely add value to your home, a new kitchen is only considered “new” for about 6 months and renovating your deck or building a pool could cost you more than you can hope to get back. For example, in 2014 a midrange composite deck addition required an average of $15,000, but it only added about $11,000 to the resale value of a home.
Think about these points carefully before opting for a big renovation project in the spring. If you are looking for major additions such as a new pool and you are not overly attached to your current neighbourhood, selling your home and moving to a new one is often the more stress-free and profitable option.
For more information, email me today at Barbara.Grumme@Century21.ca to schedule a no-charge, no obligation consultation.