4 Tips to Make Your Renovations a Success
Understand the reasons why you’re renovating. This step is often overlooked, so we advise you to sit down (with a large cup of coffee) and ask yourself, ‘’do I want to increase the value of my home or enjoy the renovations for years to come?’’ Once you’ve come up with an answer, please proceed onward.
Think About Your Personal Needs & Wants
What’s your budget? How long do you plan on living in your home after completing your renovation project? Will you be doing the work yourself? Do you have a general contractor in mind or will you hire your own tradespeople?
How much you spend on improvements should depend, in part, on how long you plan to live in your home. If you’re thinking shorter-term, smaller and less-expensive improvements may be your best bet to recover your investment. For instance, a fresh coat of paint, updating lighting, improving the curb appeal, decluttering, etc. These items can give your home an updated feel with a limited budget. For the highest return on your investment, ensure workmanship is of good quality and the materials are consistent with other homes in the area.
It’s important to keep in mind the present condition of the item you’re renovating. For example, if you’re replacing the builder quality cabinets in your 10-year-old home with custom designed cabinets with an antique finish (because that’s your personal style), the changes may not increase the value of your home at all. In other words, to appeal to a wider number of prospective purchasers, ensure the renovation blends in with the overall style and design of your home.
Hire Trusted Professionals with References
It may come as a no brainer, but an interior designer, architect and/or contractor should be consulted before you start your renovation project. They can draw up a plan and assist with renovation advice or construction. Don’t forget to build these costs in your project budget! This investment can go a long way to prevent cost over-runs and change-fees later on.
Engage a Trusted Professional Appraiser to Increase Your Awareness of Over Improvement and Unique Features
Consider your neighbourhood and the expectations of buyers in the area when planning your renovation project. Depending on the particular market and/or neighbourhood in which you reside, expensive projects that over-improve your home may only be partially recognized by prospective purchases. For example, in a particular market, renovating the basement of your home at a cost of $65,000 in an area where homes generally don’t exceed $200,000, may not provide the best financial return on your investment.
Unique designs or improvements that are uncommon for a particular market may impact the re-saleability of a home. For example, a custom designed climate-controlled wine room can cost many thousands of dollars. If you’re a wine collector extraordinaire and cost is not a concern, then creating a wine room can be personally gratifying. However, if you wish to recover even a portion of your investment, a potential purchaser would need to share your passion.
Before renovating, consider the value the improvement may add to the overall value of your property. This is where the expert advice of a TRA Appraiser can provide an objective perspective. Renovations take time, patience and planning, but can be appreciated for many years. Work with an expert! Once you’ve carefully thought about your renovation, an appraiser from TRA can assist you in understanding how your renovation project contributes to the overall value of the property.