Selling your home is a big decision that requires careful thought and planning. As some homeowners prepare to move on from their older properties, they may feel compelled to renovate their home to make it feel more appealing to buyers. While upgrading your home can increase its value and attract potential offers, renovation projects may not be necessary for certain market circumstances and can even lead to missed opportunities if they take too long to complete. Here are a few things to keep in mind if you’re considering a renovation project before listing your home.
Ready to move? Find out why now is the best time to sell your home on our blog.
Timeline
So you’ve made the decision to sell your home – congratulations. Whether you’re entering a new chapter in your life or simply looking for a change, putting your house on the market is no small accomplishment. One of the important things to consider when preparing to sell is how quickly you’d like (or need) to do it.
While renovating can improve the value of your home, undergoing a new project means more time before being able to get your house on the market. Even with the expected timeline of a project, there are plenty of variables that can lead to your renovations taking longer than expected. If you plan on hiring contractors or other professionals, the risk of delays becomes even higher. If you plan on renting after selling, delays could also mean missing out on securing a great rental property.
Planning on renting next? We’ve put together some tips to make the transition easier here.
Financial Limitations
Like any investment, renovating your home requires careful consideration of your finances. If you don’t have a traditional income, funding pre-sell renovations may be difficult. For many retired Canadians, getting a mortgage from one of the big banks while on a fixed income can be extremely difficult. Mortgage brokers can help you find a potential solution, but this will add extra time and energy to an already stressful selling process.
Learn more about what it means to be ‘house poor’ on our blog.
Competitive Factors
There’s no doubting that a home improvement project can have a positive impact on how potential buyers see your home. This factor is most important when you are selling in a buyer’s market. If there are more homes available in your area than interested buyers, renovations can help make your property stand out amongst your neighbours. However, when homes are in short supply, undergoing renovations may simply not be necessary.
Market Trends
As you likely know, Toronto’s housing market has been heating up drastically. In recent years average home prices have skyrocketed with no signs of slowing down. Toronto has become a seller’s market where home sales frequently end in bidding wars between buyers. When considering that most homes sell above the asking price, renovating for the sole purpose of boosting your asking price may be unnecessary. This is especially true for instances where the projected value of the home post-renovation is only slightly higher than pre-renovation.
Not having to worry about delays in renovations gives you full control over when your house enters the market. This gives you the power to list it when prices are highest. Though the seller’s market in Toronto is strong, small fluctuations can impact your offers and final selling price.
Curious about Toronto’s housing market? Check out these resources.
- Has Toronto Real Estate Killed the ‘Asking Price’?
- Toronto Neighbourhoods Young Professionals Love
- Best Toronto Neighbourhoods For Downsizers
Consult the Experts
Every seller is unique, and determining whether or not to renovate your home before selling can seem like a daunting decision. Luckily, a great real estate agent can evaluate your situation and offer guidance on which path is right for you. Working with a local expert means not having to worry about market trends on your own. They’ll also likely have access to critical insights that you don’t, such as if homes in your area were or weren’t renovated before selling.
As local experts, we know all there is to know about Toronto’s housing market. We can help you find your perfect neighbourhood, regardless of what your unique goals or vision may be.
If you’re ready to begin the journey of selling your home, get in touch with us.
