We hear about it in the news every single day - record home sales, sold over asking, and multiple offers. It’s a great time to be a home seller, but less favorable for those who are looking to buy. With the current state of the housing market, it only makes sense to sell your home if you’re planning to downsize.
If you’re planning to move to a larger home, you know you’ll pay well above market price or be forced to move North, East or West of the city. These are some of the reasons why there is such a shortage of inventory in the market. But no need to stress about it! There are ways one can take advantage of this situation and capitalize.
With the market the way it is and housing prices soaring through the roof, there is a very good chance that the equity in your home has increased, possibly by a significant amount.
Curious to find out by how much?
Well, one trick I have used in the past is to surf through Realtor.ca to see what’s going on in your surrounding neighbourhood. Check out who is selling and see what their listing prices are. Another option is to request an appraisal from your mortgage provider or financial institution. Sometimes there can be a small cost associated with this service, but you will be provided with an official value estimation of your home and have a good idea of how much equity you have in your home.
One way to force some equity into your home is with a renovation. Now that you know the value of your home, you might have an opportunity to apply for a Line of Credit or Loan based on the equity. If you received a formal appraisal from your mortgage provider or financial institution, this will be used to establish the amount of credit available. With this money, you could now complete the renovations you have always wanted to. Keep in mind that kitchens, bathrooms and finished basements can bring the highest return on investment. Here are some options that I would recommend.
This area has become “home base” in many homes and the focal point for entertaining guests. Kitchen renovations often offer the highest return on investment (ROI) compared to any other room in your home. You could choose to go big and do a complete tear-out and re-build. This type of renovation can be costly, but can also offer you a great return on investment when you are ready to sell. On the other hand, a simple reface of cabinet doors and new counters can also make a big difference. Changing door handles, faucets and light fixtures for a fresh “face-lift” or maybe upgrading your appliances can still bring a lot of additional value to your home. Any of these options will work in your home’s favour.
Sometimes overlooked, a bathroom renovation is another great way to increase your home’s value. Bathroom renovations are generally not as costly or as complex as a kitchen renovation and can often cost much less. Simple renovations such as changing the tiles or the vanity in a powder room are a good start. A larger scale renovation like remodeling the master bathroom may be more costly but can definitely be more appealing to future buyers!
After your renovations are complete, you would have the choice to go to market or wait and enjoy your beautifully upgraded home. Either option is a good one – depending on the state of the market and just how much you love your new home!
Marko Furlani is the owner and President of Urbanest Construction.