Many homeowners renovate when selling their home to help increase its value. But did you know that some renovations can actually have the opposite effect?
So here's 4 home reno mistakes you need to know:
👉🏻👉🏻Using bright colours/patterns.
It’s your property, so you can do with it what you want. But if you’re planning to put it up for sale stay neutral.
You may think that a bright yellow wall is beautiful, but potential buyers may not. In fact, choosing anything but neutral-colored décor could lessen the value of your home.
👉🏻👉🏻Upgrading only part of the house.
I had a client once that spent a bunch of money on upgrading and updating the primary ensuite. Don't get me wrong, what they did was stunning. But they couldn't afford to update the rest of the house. This ended up having a negative effect. It made the rest of the home look even more tired.
Buyers are shrewd. While they understand the value of something like a new bathroom, they won't see past the old kitchen, beat-up flooring etc.
Don't throw away money on one huge reno to one space. Instead, spread the money across several smaller things. To help create value across the board.
👉🏻👉🏻Making luxury upgrades in the wrong neighborhood.
The problem here is that buyers may not appreciate and understand the value of the upgrades. In the end, while those upgrades are beautiful, they won't pay over and above market value, because of them.
Sometimes some basic Home Depot specials can work wonders!
👉🏻👉🏻Not obtaining permits for renos.
It's essential that you check with the city. You'd be surprised which minor renos can need permits. And if you're selling a home that doesn't have a permit for an update, appraisers and lenders may lower the value of your home.
Buyers will steer clear as they don't want to take on this headache. And insurance companies may not pay out a claim. It's not worth the hassle.
I've actually been in homes where load-bearing walls have been removed. And NO structural support was replaced.
When I checked with the city to find out if permits were obtained for the work, non were found on file. Our buyer walked away at that point. And the same could happen to you.
Getting your home ready to sell doesn't mean you have to renovate and spend a load of money doing it.
Speak to your realtor and their professional stager before you go ahead. Sometimes a lick of fresh paint and a good cleaning is all that's needed.
- Justin
