Should I do improvements prior to selling, or sell AS-IS?
Monday Aug 01st, 2022
Should I do improvements prior to selling, or sell AS-IS??
A tale as old as time but in the form of a question… should I bother putting money into my house before selling or save myself the hassle and the Money?? I'm Meegan Dennie, a realtor in the competitive market of Toronto Ontario Canada and I'm going to make this as painless as possible with a quick break down on what to consider and I'll have a real client Story to share with you that you can learn from.
First of all, I want to make a disclaimer that I am not a real estate website that pretends to know the value of your home based on an algorithm..(you know who I'm talking about). I will not be able to predict anything about your home (especially when it comes to remodelling and renovations), until I actually see it and understand the market and the area you are in. I know, crazy right... (sarcasm)
So let’s get into this..
#1 -What is the reason you are selling the property?
Is it an Estate sale? Is this an investment property or your actual home? The reason I ask is because if it is not your principal residence, the motivation and quality of the home may be very different compared to an income property or an estate sale.
Also something to consider is the lovely.. Capital gains tax and what you will net after remodelling.
#2 What kind of property is it?
Are we talking a 1 bedroom condo that will resale for under $600, 000? Or is it a Semi or a detached home?
The reason why this needs to be considered is because if the resale is under $600,000 for a one bedroom condo in that area, it really won’t make a big difference to your bottom line if you are spending 35k or more to renovate it.
That doesn’t mean you shouldn’t renovate condo’s. if you are the one living it in and who gets to enjoy it, go for it!! And it won't hurt on the resale either!!
Now if it’s a semi detached or detached… that could be another story!!.
#3 Where is it located?
I had a client selling their beautifully renovated detached house in Vaughan. They remodeled the home and it was done to the nines, no expense spared, it Looked fabulous.
Only problem - it was on a street that also had townhouses and semi’s and the curb appeal of the home and the street, wasn’t great so they weren't actually able to recoup all the money they spent on the luxury finishes. Their home however, still sold for a record price for that area!
The direct area around you can impact resale and there may be a cap on how much your house will sell for based on the area.
If you are in a desirable area like Trinity Bellwoods, Palmerston - Little Italy, or High park just to name a few, most likely you can get a great return on your remodeling investments. These areas and many more like them, are highly sought after in the Toronto core..
#4 What’s going on in the market?
Last but not least, is it a sellers market or a buyers market, or is it a transitioning market? Before you go spending a ton on renos and remodeling, have your agent do a full assessment with you and discuss the do’s and don’ts. Maybe all you need are some updated light ﬁxtures, a coat of paint and some great staging and design..
Should You buy or sell ﬁrst?? A great question that is answered in this video series. https://youtu.be/43BeQJDq7R0
My name is Meegan Dennie, call me for your Toronto & GTA real estate needs. :)