There are two reasons to renovate your home:

1. To upgrade it for resale, or
2. If you want a new kitchen, bathroom, bedroom or other space.

Before you start, consider the following:  Renovations cost more than new construction, as much as 50% more. 

So ask yourself first if the house is worth renovating? If you have a character home, generally, the house can be well worth renovating for the added value it gives to the property.  If you have an ordinary home, love its location and neighbourhood, then renovations for your own enjoyment are also worth while. 

If the house is indeed a special character house, then engage an architect first. He will foresee many things that you will never think of, such as circulation to the new kitchen, building code considerations, and how this renovation will tie into other, future renovations. Expertise is usually worth the added expense.

As a further cautionary note we have seen very expensive renovations carried out only to see the next owner tear out the entire new kitchen and expand it, or even tear the house down.  In those cases, the renovation did not add value.  It takes a certain sense of taste and style to renovate and have the results appeal to the market place and benefit the seller.

The renovation market has changed.

Between 2004 and early 2008 we saw such dramatic price increases that it wasn’t always worthwhile, (except for the professional renovator), to try to increase your property value prior to sale.  Comfortable homes were being torn down for new high end houses. And, the market value of the land was rising faster than the added cost/value of renovation.  We’ve seen situations where a renovated home sold for top dollar, only to see the neighbour’s house, who had the worst run-down house on the block, sell for more 6 months later. This was pretty discouraging for the home owner who just renovated and sold.

The good news is that as a result of the current price correction in the market, it can be worthwhile to renovate again. It’s a buyers market and buyers will pay more, and choose a great house compared to one thats run down.

We are very knowledgeable about the value of renovation projects as we have been both renovators and realtors on renovated homes.   See our section of tips for sellers to find out more.

Call us for a free, no obligation, market evaluation before you start your renovation project.