The Halifax real estate market is pretty much like what you’d see in other major Canadian cities. Business is booming: plenty of buyers are looking for homes, and prices keep steadily rising. Some homeowners may think about cashing in on the surging real estate market by investing in costly home renovations and upgrades. But that may not be your wisest move.
Let’s face it; some renovations do seem to make sense. If you try to make your home look better and become more convenient, shouldn’t it be worth more? It can attract more people to take an interest in your home, and the price of your home can increase that well.
While the whole idea looks good in theory, many real estate experts have long realized that it’s not really an accurate representation of what’s going to happen. It’s been shown time and again over the years that not all upgrades will actually add value to your home. You may only recoup about half of what you spent, and that’s if you’re lucky. Some unlucky homeowners may actually end up turning off buyers or reducing the value of their homes die to these “upgrades”.
So before you do some major renovation to your home, you need to be very careful. In fact, you may want to reconsider if you’re thinking about the following upgrades:
Putting In a Swimming Pool
In theory, adding a swimming pool to your home seems like a marvelous idea. It often looks great, and it’s fun for the whole family. People can swim and do cardio exercises so they can also keep fit.
The reality is a lot less exhilarating, however. It’s an expensive upgrade, and you will find out that maintenance won’t be cheap as well. You also won’t be able to use it for the cold winter months, like you’d experience in a city like Halifax.
When it’s time to sell your home, you will also discover that instead of a come-on for buyers, your swimming pool will actually be a turnoff for most people. Many just won’t want to take on the added maintenance costs, and it can be a major hassle as well. For families with small children, the swimming pool even represents a major safety hazard for the tots.
Even if you do sell only to buyers who prefer to have a swimming pool, it’s not always a perfect match. Their idea of what a swimming pool ought to look like may differ from the pool you had constructed for your home.
Major Kitchen Remodel
It is true that many homebuyers factor in what your kitchen looks like before they decide to buy your home. But that doesn’t mean that a major kitchen remodel is actually a good idea.
The reality is that this can be a very expensive proposition, and the average cost of a major kitchen remodel is about $60,000. Now factor in the experts estimate that such a remodel will only yield a return of 50%, and you’re faced with the awful truth that you put $30,000 down the drain.
The reason for the low return is similar to why even homebuyers who swim don’t buying a house with a swimming pool. In the case of the kitchen remodel, homebuyers simply may end up not liking the changes you’ve made. They have different ideas on what the kitchen should look like, and of course your ideas were different from theirs.
Buyers want a certain number of bedrooms, and the addition of a bedroom makes your home seem more valuable. The converse is also true. If you convert a bedroom into a library, an office, or a home gym, you’re reducing the value of your home.
These are the top three upgrades that you really need to think about before you have them done. Make sure you’re doing it for the right reasons—you can have them done because you enjoy them, but they won’t add value to your home!
Categories: Real Estate