Ask anybody if they want to increase the value of their property before selling and you’ll be met with a resounding “YES”! In my experience of over two decades as a real estate agent in Toronto, I have met very few clients who have refused the opportunity to increase the value of their home pre-sale.
Table of Contents
If you don’t want to increase the value of your home before you sell due to emotional reasons, I hear you. But you can also improve your home’s value without making too many permanent changes to it.
In my opinion, this is more science than art. There’s a straightforward, well-defined process to help you increase property value before selling. In this blog, I break down our team’s process, answer some of your frequently asked questions and hopefully, in the process, I inspire you to take on a home improvement project that will help you achieve your goals!
Before I spill the beans, let me tell you why it’s a good idea to list your property with us, The Pierre Carapetian Group. Unlike other real estate agents, we deliver concierge-level service to ALL our clients. You don’t need to worry about anything. Once you choose to list your property with us, we come over and conduct a free pre-listing home inspection to look for improvement and renovation opportunities that will improve your property value before selling. It’s up to you whether you want to take our recommendations and make the improvement or not. We leave the ball in your court. But that’s not all. If you do ultimately list with us, I highly recommend you take us up on our complimentary home staging that will really boost your home’s value and make potential home buyers feel right at home when they walk through that front door.
Enough of the chit-chat now. You can book a free call with me or somebody from my team for more details but now let’s get straight to the blog!
How To Increase The Value Of Your Home
Can You Double The Value Of Your Property Before Selling?
I don’t want to say ‘no’ and burst your bubble but if your goal is to double the value of your property before selling, it’s going to be very hard. Depending on what you’re doing to improve your home’s value – be it home staging or some major home improvement projects – it can appreciate by 5% – 20% on average – not 100%! All that means is that you need to set realistic goals for yourself and for every renovation project that you choose to undertake!
If you’re after such incremental gains, my advice to you would be to hold your property for at least 3-5 years. Let it appreciate and build equity over time. Then, when you do want to sell it, you will have a lot more options knocking on your door. Perhaps, depending on when you purchased the property, you will even get an opportunity to sell your property for double the price!
What Factors Influence The Value Of Your Home?
There are a number of factors that influence the value of your home – some within your control and some beyond it. In this blog, I’ll focus on those aspects that you do have control over. If you’re interested in more information, I’ll link the other blog below.
Property Type: Property type makes a big difference in a competitive real estate market like Toronto. For example, in Toronto, the demand for homes far exceeds the supply as a result of which, single-family detached homes benefit the most from real estate appreciation closely followed by condos, semi-detached homes, and then townhouses!
Size: This goes without saying – the bigger your property, the more you can command for it. On average, Toronto condos are approximately 700 – 800 square feet big. As of today, the average price per square foot for condos in Toronto is approximately $1400.
Neighbourhood: Properties located in up-and-coming neighbourhoods or popular neighbourhoods with access to transit lines, educational resources, recreational hot spots, and shopping centers cost a lot more than those located on the fringes of the city! If you’re not sure what neighbourhoods are desirable, compile your list of must-haves and consult a local real estate agent to help you identify the best neighbourhood for you.
Market Conditions: Market conditions play a huge role in determining the value of your home. They are dictated by simple demand-supply economics. When demand exceeds supply, you’re operating in a seller’s market which allows sellers to charge premiums, forgo home inspections, and a lot more! On the other hand, when supply exceeds demand, you’re operating in a buyer’s market which prompts sellers to put in the extra work to prepare their home for sale.
Property Age & Condition: New properties have better resale value than old properties. The challenge with old properties is that it’s considerably expensive to maintain them and they’re generally not at all energy efficient! Coming to the condition – if your property doesn’t show well, it’s not going to sell well either. All the more reason for you to finish this blog and make the necessary fixes immediately!
3 Things You Can Do To Improve The Value Of Your Home In Toronto – Quickly!
There’s a lot that you can do that can potentially increase the value of your house. To avoid a situation of information overload, I’ll just be sharing 3 things that you can do to improve the value of your house, which are:
Updating your appliances and/or adding energy-efficient appliances.
Whatever approach you choose to adopt – try to remember why you’re doing, what you’re doing. Ultimately, your goal as a homeowner is to showcase the best version of your property to every potential buyer.
Why do you want to do this?
Two main reasons: 1) to get the amount that you rightfully deserve for your property; 2) to help any potential buyer visualize their life in a new space by addressing their emotional and psychological needs.
One of the simplest, most cost-effective improvements of all is a new paint job. Refreshing your home with a light or neutral coat of paint can brighten up a room and make it look significantly better.
Three of the most valuable features in a home are kitchens, bathrooms, and landscaping. Renovating or improving these spaces can be a good investment to help increase the value of your home. I elaborate on this late on in the blog too! Most Buyers pay close attention to these components of a home and can be a huge selling point for them.
If the thought of having your flooring replaced, and kitchens and bathrooms renovated sounds daunting, you can request your real estate team for help. For example, when you work with us, we look after all your renovation projects – be they minor or major! We work with a number of trusted local professionals who guarantee a quick turnaround time. At the end of the day, we do our best to ensure that all our client properties get the attention they deserve and sell for the most amount of money possible!
Stage Your Home for Viewings
If you want to sell a home quickly and for the best possible price, staging is one of the easiest ways to make it happen. Staging a home ensures that a potential buyer can see your property in its very best light. It can help you show the buyer what a property can offer without requiring a complete makeover.
Another important reason to get your home staged is that it depersonalizes your property. In my experience, I have met a couple of prospective, qualified buyers who – crazy as it may sound – simply don’t want to feel like they’re purchasing somebody else’s home. Ideally, prospective buyers want to be able to picture themselves in the home and make that personalized connection themselves.
When you work with us we offer complimentary home staging to maximize your home value when selling and you will have an entire team at your disposal. Our professional home staging services go beyond just bringing in furniture.
Think of it this way – if you were a home buyer and you were taken to see two different, yet similar properties in the same neighbourhood. Both look great, and both are priced similarly but one is equipped with modern, up-to-date, efficient appliances and the other one is relying on ten-year-old appliances.
Which property would you prefer? I’d like to assume that you’d go for the one with updated appliances because that’s what I’d do too!
If you’re on a tight budget, focus on improving the appliances in your kitchen first. You can then work your way toward the bathroom, living room, and bedrooms respectively.
Add Energy-Efficient Amenities
In case you aren’t aware, the younger cohorts – generation Z & millennials too – care a lot about the environment. In fact, this year, when I took a couple of clients for home viewings I was genuinely surprised by the number of units that now boasted of having energy-efficient appliances. So if your prospective buyer falls into the younger demographics, I highly recommend that you look into this option. Be a part of the solution that saves the earth and earn some money while doing it – nothing wrong with that!
Energy-efficient appliances are better for the environment and they help you save money because they use less energy. Adding sustainable and eco-friendly amenities can reduce monthly energy bills and help the environment. Energy Star Appliances can save up to 50 percent less energy and water than standard appliances. More and more homeowners are opting for sustainable living and amenities in their homes.
Energy-efficient amenities help reduce greenhouse gasses emitted into the atmosphere and reduce our consumption habits. It has been shown that people want to reduce their personal carbon footprint and the majority of it comes from the gasses we burn in our homes.
10 Cheapest Ways To Increase The Value Of Your Home
For this section, I used the thrifty side of my brain while rummaging through some home decor magazines for additional ideas. You can feel free to use this as inspiration to come up with other ideas that are more suited to your property!
Install energy-efficient LED light bulbs throughout your home. They not only save money on electricity but also make your space look brighter and more modern.
Update your kitchen cabinets with a fresh coat of paint or new hardware for an instant facelift.
Add a backsplash in your kitchen or bathroom using peel-and-stick tiles. It’s a budget-friendly way to add style and protect your walls.
Create a cozy reading nook by adding a comfortable chair, a bookshelf, and soft lighting.
Install a low-flow showerhead and faucet aerators to conserve water and reduce utility bills.
Add a fresh layer of mulch to your garden beds and consider planting low-maintenance, drought-resistant plants for an attractive yet sustainable landscape.
Install a DIY floating shelf in your kitchen or bathroom to provide extra storage for displaying decorative items or organizing essentials.
Incorporate a mix of indoor plants and succulents to bring life and freshness into your home. They not only improve air quality but also add visual appeal.
Use affordable LED strip lights to highlight architectural features, such as crown molding or bookshelves, creating a warm and inviting atmosphere.
Replace outdated switch plates and outlet covers with new ones to freshen up the appearance of your walls.
How Renovations Impact Home Valuations In Toronto
Renovating before you list your home for sale is a great idea if you have some time and money to spare. Most home renovation projects have a positive impact on resale value. Not all but most of them do.
Whenever we have a client that is looking to sell their home with us, we help guide them towards valuable and cost-effective renovations that can be done before listing their home. You need to ensure that you’re being practical with your renovations. Look out for high ROI home renovations. Speak to professionals to get their insight on what’s working and what’s not. You can always book a call with us too and we’d be happy to help you!
As a rule of thumb, take up a home improvement project if you know that it will add more value to your home than its cost. If large home renovations don’t fall within your budget, there are many small improvements that you can do to increase your home’s value.
I have written a complete blog on the ‘10 Best Renovations To Do To Increase Home Value Before Selling [Budget & High ROI]’, if you’d like to get deep into this topic, that’s the resource for you. However, if you’re just looking for an overview of the topic, stick around.
3 Best Renovations You Can Do To Increase The Value Of Your Home
Finish the Basement
One of the best home renovations for resale properties is finishing the basement. By finishing your basement, you can stand out in comparison to homes around you because there are buyers that actively seek homes with finished basements.
People love a finished basement because it acts as a makeshift room/living space that they can either use themselves or rent out to make some additional money. If you turn your basement space into a spare bedroom with a full bathroom and kitchen, it can be another way of making money as you can convert it into a rental unit and a steady source of income. For a prospective buyer who’s looking for additional passive income streams, a finished basement is a very attractive proposition!
Kitchen Renovation & Bathroom Remodel
Kitchen and bathrooms are the most popular home renovation projects in Canada and they can definitely increase the value of your house dramatically. You spend the majority of your time in both of these spaces, so ensuring they look their best is crucial when you are looking to sell your home.
The kitchen is the focal point of the home. It’s where families spend a large amount of time. Having an outdated kitchen can really hurt the value of your home when putting it on the market. If you have the budget, kitchen renovations such as changing the tiles, refacing old cabinets, and using energy-efficient appliances will help increase the value of your home. If large renovations are out of your budget, there are other small kitchen improvements that you can use to increase the value of your home such as swapping out your hardware, updating the lighting, or painting your cabinets to something more modern.
For bathrooms, buyers like to see new bathtubs, sinks, and tile floors. Again, a renovation can be cost-friendly, you don’t have to make huge changes to your bathroom to improve its look. Some bathroom renovation ideas include new plumbing fixtures, vanity upgrades, a fresh coat of paint, new flooring, or adding energy-efficient updates. Old plumbing fixtures can instantly date the bathroom – make sure to upgrade them. If you have a little bit extra to spend, you can consider upgrading your entire vanity, which includes cabinets and sinks. Marble and granite are top picks for a lot of home buyers. You can also optimize your shower, sink, and toilet to be low flow which will mean less water usage and more savings on a water bill.
Improve the Curb Appeal
Working on the exteriors of your property – which means improving the curb appeal – will help you make a great first impression on a prospective buyer. This can include landscaping, a new paint job, pulling weeds, and upgrading your garden. When you’re selling your home, your curb appeal could add tens of thousands of dollars to the value. It’s the first thing prospective buyers see when they approach the house, so ensuring your home is shown in the best possible light is very important.
3 Renovations That DO NOT Increase The Value Of Your Home
If you’ve been paying attention, you already know that not all home renovation projects have a positive impact on the resale value of a property. With that in mind, I’ll try to keep this section as short and sweet as possible.
Swimming pools: In Canada especially – a swimming pool is more likely to reduce the value of your home rather than increase it. There are two problems with swimming pools in Canada. One, fall and winter temperatures aren’t necessarily conducive to outdoor swimming. Once the temperature drops after spring and summer, very few people continue to take joy from a splash in the pool! Secondly, while you may be able to use the pool for just 4-6 months in a year, you have to maintain it throughout the year – which is not easy to do!
Solar panels: If you’re installing a solar panel with the objective to do your bit to save the planet – go ahead, no objections there. However, if your sole objective behind installing solar panels is to increase the value of your home before selling – I would recommend that you jump ship right away. The cost of installing solar panels exceeds the resale value they add to your property and that’s me following my rule of thumb!
Room conversions: The problem with room conversions is that instead of depersonalizing your space, you end up personalizing it even more. As I said, that’s not the best way to sell a home! Room conversions can be great when you know exactly who your buyer is. However, unfortunately, the real estate industry doesn’t work that way. You’re more likely to learn about who your buyer is only when it’s too late to make any major renovations.
When you work with us to sell your home, we have a team of trusted professionals who take care of everything your home may need before selling. Whether it is painting the interior and exterior of your home or bringing in our team of trades professionals for some repairs, we have you covered. We understand how important the sale of your home is, and we ensure a stress-free process for our clients. You can always try a free home valuation to see how much your home may be worth if you are thinking about selling. If you’re selling your property or getting prepared to do so and need some help, you can always book a free call with me or somebody from my team and we’d be happy to help! Not to forget – you can also take advantage of our FREE Sellers Guide.