How to Maximize the Utility and Value of Your Home Renovation
Home renovations are an inevitable step for almost all homeowners at one or several points in life. When it comes to taking on a home renovation, many might solicit the help of an architect or interior designer. However, too few consider the benefits of complementing that advice with that of a real estate professional. While a designer can help maximize value, a real estate professional will define how the market measures that value. Together, both can help you to intelligently achieve a perfect balance between the qualitative and quantitative tools that each have to offer, respectively.
Maximizing the Utility and Value of Your Home Renovation
Even though there is no limit to how much you can spend on a home renovation, it’s important to consider how your investment fits with your lifestyle. This is also true if you are on a budget, as most are. If not planned out effectively, the cost of a home renovation may not be recouped. Especially if and when you want to sell, this is something to keep in mind. So, the question is, how can you maximize both the utility and value of your home renovation?
Get the Right Advice on the Real Estate Market
First, you’ll want to consider the market data in your neighbourhood. This is where a real estate professional comes in handy – especially in the Toronto real estate market! Regardless of how familiar an individual or designer is with a community, a real estate agent will have a greater understanding of the entire makeup of a neighbourhood and the homes within it. Local agents are exposed to a considerable amount of home renovations. They witness first-hand, the impact that a home renovation has had on the value of not only the home itself, but the neighbourhood as well. It is with this experience that an agent can discuss which renovations have returned the best value in each neighbourhood. So, take this knowledge and build a baseline budget. You never know, it may end up being less or much more than anticipated.
Further, a realtor who specializes in your neighbourhood is the best person to provide advice on the nuances of the market. Using local market data, agents help to identify the reasonable standards in a given neighbourhood. This will tell you what you need in order to meet the standards of the homes in that area.
Now depending on the conditions of the local market, the value of your home may already be at its maximum potential. With this in mind, any renovation may become superfluous. It can add little to no value in relation to your home as an investment. In fact, even in a hot market, homeowners must be cognizant of over-renovating. Typically, this occurs when the value of a home is already significantly higher than its counterparts in that neighbourhood. Notably, a real estate professional can provide these statistics and walk you through the variables.
Something to Consider if You’re Renovating to Sell
Second, you’ll also want to consider the fact that buyer perceptions vary. In other words, potential buyers may not have the same tastes as you do. Although there are classic and neutral designs that may seem ‘universally pleasing’ it is challenging to predict the reaction of prospective buyers. A seasoned real estate agent can get to the heart of what drives certain perceptions. They can single out or establish those elements that are worth pursuing for your home. Also, it is important to remember that most buyers will not be able to identify the difference between a $200 and $2000 bathroom sink. Can you?
Budget Your Home Renovation
Lastly, if you’re a prudent homeowner, you’ll want to consider the potential hidden costs of a home renovation. No matter what the budget, most homeowners run into setbacks that end up costing far more than anticipated. Working with a realtor who is in tune with construction costs can provide you with the additional benefit of flushing out unexpected costs. While designers can ensure your project stays on budget, a real estate professional will help you determine the costs in relation to the reasonable standards of the local market. And, this is important to know especially early on in the renovation process. Working together, the designer and agent can identify both the upfront and hidden costs that are associated with your project.
Ready to Start Your Home Renovation?
Whether you are considering selling in the long- or short-term, renovations should always be carefully considered prior to beginning any work. Have a real estate agent to guide you with a better sense of the big picture. This way, you can work with your designer on a budget that is feasible and marries your taste with the market. Seeking the advice of a trusted agent who understands what creates demand in your neighbourhood can help maximize your investment and keep you updated over the long term for future improvements. Drop us a line when you’re ready to start your home renovation. We’ve got you covered in both design and market intelligence.
