This week on CIBL’s Les Oranges Pressées, our discussion will be based on an article from La Presse titled Renovating for Better Sales: Where to Invest, and What to Avoid. Using it as a guide, we will go over the most advantageous renovation projects for a home seller.
Home Expansions
Getting a return on an investment from a property expansion is not always guaranteed and can depend on many different factors. For example, the expansion of a home in the suburbs is not recommended because of neighborhood standards. If you start modifying your property, it will no longer correspond to the square footage of surrounding homes, and you’ll risk losing the capital gain on your investment. On the other hand, in some Montreal neighborhoods like Ahuntsic, the demand is quite high, so the money spent on expansion projects has a higher probability of being recovered.
Basements
Many believe that unfinished basements are a perfect opportunity for future owners to design a space to their liking. However, it is strongly advised to finish the space before the sale, since young families purchasing their first homes rarely have the necessary funds for such renovations.
Flooring
A house’s design and interior decoration are often the product of fashion trends. Updating out-of-fashion materials without spending excessive sums will play in the seller’s favor since these types of renovations guarantee a recovery of investments.
Swimming Pools and Landscaping
If you decide to launch yourself into the construction of an in-ground pool, keep in mind that you will never secure a total return on your investment. The cost of installing an in-ground pool is estimated at $50,000, while the return will only get you between $10,000 and $15,000. Although we can’t quantify the luxury and moments of happiness that come with owning an in-ground pool, be aware that future potential buyers will have their own expectations and notions of luxury!
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