HOME RENOVATIONS

How to Get the Most For Your Money

A renovation can add significant value and enjoyment to a home. As a result, more and more individuals in the Okanagan are choosing to update their homes. The Appraisal Institute of Canada has found that some remodels or renovations can be expected to nearly double the amount you invest in the project. However, before you pick up a hammer or call in a reputable contractor, there are a few guidelines to follow.

This article will explore the range of upgrades available for a home. In particular, it will investigate which upgrades offer the biggest economical advantage, or, the more "Bang for your Buck" improvements that add the most value to your property in relation to the cost of the upgrade.

Most Valuable Renovations:

Here is a list of ways to spend money on your home. Click on each link to learn the best way to use this update.

Paint	Kitchen Renovations	Bathroom Renovations	Lighting
Flooring	Landscaping	Doors and Windows

 

When renovating or remodelling, it is important to research all aspects of your home improvement project. Just because you spend money on your home, it does not necessarily mean that your property will increase in value. Believe it or not, some renovations can actually considerably decrease the overall value of a home. This can be particularly true of renovations that are centered around a homeowners specific taste or design.

DO YOUR HOMEWORK:

If raising your resale value is the greater goal in your reno/remodel, it is essential to do your research; be aware of the current trends and styles that are contemporary, trendy, and popular in the larger community. This "collective taste" is simple to investigate; visit local department stores to view the latest trends in home decorating firsthand. Also, check out local hardware and specialty stores to see the latest designs in flooring, countertops, lighting, fixtures, etc. Last but not least, invest in a variety of popular home magazines. Magazines are a relatively cheap way to gain insight on the latest designer trends and the more modern updates that will interest homebuyers.

Renovations that are ill-conceived, dated, poorly designed, dysfunctional, or poorly built will frequently decrease a home's value. To ensure your hard-earned money is not gone to waste, it is important to taken into account both property location and quality of the renovation.

REVIEW YOUR SITUATION:

When considering the overall assessed value of your property, there are a few other things to consider besides décor, design and furnishings. Where your house is located, as well as the quality, size, and condition of surrounding homes makes a huge difference when calculating a home's worth. It is not advisable to build or renovate your house to the point where it becomes the most expensive house on the street. In this situation, you will rarely get the most out of your money as the surrounding homes will hold your value down; your neighbours' assessments are reflected in your assessed value.

Improvements that are over-built in comparison with the neighbourhood, will not achieve full potential value.

Before embarking on a renovation, it is a good idea to take a close look around at the houses in your area; check out what others have done and what choices they've made, if any, regarding building and renovation choices. Taking the time to visit nearby or comparable open houses can be incredibly useful to see where you stand in the housing market.

KNOW WHERE YOU STAND:

Not only is it important to renovate appropriate to the level of your neighbourhood, but also to the quality of the rest of your home.

If you live in a custom house that was constructed with the highest quality features, it would not be logical to invest your money by replacing damaged flooring or dated with a cheap laminate. The same logic applies to a more ordinary house; to maintain consistency in the home, it not advisable to spend money on "over-improvements", or, improvements that are of a significantly higher standard and price point than the present state of the home. The results can look very mismatched and incompatible; home buyers are often turned off when elements of the house have an uneven feel or when things feel out of place.

In homes where luxury is not the main priority and practicality is the go-to choice when making decisions of an aesthetic nature, over-the-top selections for countertops, fixtures, furnishings, etc. can be detrimental to the overall visual of the home. Also, elements that are excessive and ill-fitting to the home, while costly to purchase and install, rarely see the money returned in resale.

The buyer is interested in the big picture: location, square footage, overall style, etc. To put it bluntly, the top-of-the-line granite countertops in a low to low-middle value home will not increase the price of the house to a point where the homeowner is seeing a profit, or even breaking even, on the investment of the granite. Likewise, it is not usually a sound investment to spend thousands on a dining room chandelier or the finest Italian tile for your main floor, over-improving, unless you plan on living in the house for several years and are not worried about recouping your investment.

KEEP IN MIND – if the investment is for your personal enjoyment, go for the extravagant if you want it! The only time you should second-guess such improvements is when your desired result is a profitable resale of the property, or when you are not planning on staying in the house for an extended period of time. Overall, the general rule is to always renovate to a similar quality level as the rest of your home.

WHO CAN HELP?

If the focus of your renovation is to increase the value of your property for resale, it is important to add value to the areas that will draw the attention and focus of potential buyers. If you are unsure of where your home needs improving, realtors typically have a moderate to good understanding of what an average buyer is looking for. In fact, the often advertise this assistance as part of their service; they offer to help homesellers by pointing out the areas of the house that need a coat of paint, de-cluttering, updating, etc. Often, your realtor can help you by showing you the best place to invest, allowing you to get the most out of your money and increase the value of your home.

Hiring an interior decorator can also be a worthwhile investment. An interior decorator has a high understanding of the elements of design that many homeowners can use assistance with; certified interior decorators have an advanced knowledge base in home aesthetics and can help with decisions regarding things such as colour choices, colour combinations, themes, textures, patterns, fabrics, window treatments, flooring, furnishings, layout, the overall "flow" of the home, etc.