Hi there, it’s Christine with TCC Team in Toronto , welcome to part 2 of our 3 part renovation video series, Thinking Of Selling? Don’t Spend A Dime Until You’ve Answered These 3 Questions.
Today I’ll be talking about Question #2 which is: Do you know what the average sale price is for a home in your neighbourhood?
This is important because we often see home owner’s falling into the trap of over-improving their properties way past what they’ll be able to get when they sell. The reality is that home buyers will not pick up the tab for renovations you’ve done that raise the value of your property above neighbourhood values unless it’s a ridiculously strong seller’s market and even then it’s no guarantee. In essence, you don’t want to be the most expensive house on the street! So if the average value of a home in your neighbourhood is $400,000, it wouldn’t make sense to spend $100,000 to renovate your basement now would it?
So what are the ways that you can over improve your property?
1. You add too much square footage. I know that this seems a little counter intuitive but if your house becomes twice a big as the neighbouring homes because you’ve added multiple additions for example, it doesn’t mean that you’ll be able to sell if for twice as much. In fact, larger homes tend to have a lower price per square foot. If you’re not doing what’s consistent with the look and feel of the neighbourhood than you’ve most likely over improved.
2. You’ve converted your garage. It’s great for you that you’ve turned your garage into a recording studio, but you’ve also taken away one of the most appealing factors to home buyers which is having a garage for their vehicle. This is especially important if all your neighbours have a useable garage and you don’t. If buyers expect a garage they’ll pay less for a home that doesn’t have one.
3. You’ve put in too many upgrades or two much personalization. Stay tuned for more on that in the third and final part of our renovation video series – Do you know what buyers want?
Thanks for watching. Do you have questions?
Contact us today at #416-291-7372 or email us at [email protected] We’re happy to help!
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