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Is it Worth it to Renovate Before Listing Your House?

The real estate market in London, Ontario currently provides an excellent opportunity for homeowners looking to list their homes. Buyers are looking and willing to purchase homes in this exciting city. However, because the current market is active, smart homeowners need to do everything in their power to make their homes more attractive to potential buyers. There are many fine homes currently for sale and the key to success in the market is listing a new that is practically new. This means that a property that has been renovated with care will stand a much higher chance for success than similarly situated properties that have yet to undergo a renovation. The following are three key reasons why homeowners should renovate their properties prior to listing.

Renovation Allows the Homeowner to Demand a Higher Selling Price

Modern home buyers are well aware of the costs associated with purchasing a home that is newly renovated versus purchasing a home that will need immediate work. Buyers, and their agents, factor in what a renovation would possibly cost when determining whether or not a price is fair. Indeed, young professionals with a growing family will happily pay a premium for a newly renovated home to avoid the cost, and more importantly, the time associated with renovating the home themselves. The price of not having to worry about hiring contractors and painting walls is something that many buyers will be willing to pay. This is why a renovated home will be able to be listed for a higher price than similarly situated homes in the same neighbourhood.

Renovation Allows the Homeowner to Target a Specific Group of Buyers

Renovation allows the homeowner to target buyers that are willing to pay the higher asking price and less likely to try and negotiate the price down. A buyer that is looking to purchase a home for cheap and flip it for a profit is likely to stay away from newly renovated homes. They know that they will not be able to negotiate with a homeowner that has already gone through the time and expense of renovating the home prior to listing. Thus, renovation will help to ensure that the only buyers that are going to take the time to make a valid offer are those who are willing to pay at or near the listing price.

Renovation Does Not Need to be Overly Complicated

Homeowners should be aware that prior to beginning a renovation that it is important to not lose sight of the forest for the trees. Quite simply, the renovation should focus on simple changes such as updated bathrooms, flooring, and colour schemes. The homeowner should not focus on minor details, but rather, work to ensure that home when viewed from a macro point of view is modern and compelling. This means that if the homeowner is careful in selecting only the most important parts to renovate, they can demand a higher price at a smaller renovation cost. It is best to contact a real estate professional to determine what updates are most likely to attract the best potential buyers before undergoing the costs of a renovation.

Picture of Anne-Marie Grantham

Anne-Marie Grantham

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