Renos Help To Sell Houses
Savvy Ontario homeowners are spending an average of $21,000 to update their kitchens, floors and windows to improve their returns in the resale housing market. Re/Max Ontario-Atlantic Canada, recently carried out a provincial survey on home-buying and selling trends and found that more than 79% of all sellers made some improvements to their homes within two years of putting their homes on the market. Nearly 40% made the changes with a sale in mind.
"Further indicative of how sophisticated sellers and buyers are becoming, 37% of sellers made upgrades to their home after listing their property for sale," Re/Max Ontario-Atlantic Canada said in a press release.
With the economy slowing down and Toronto-area house prices dropping for the first time in years, the business of attracting buyers is becoming increasingly competitive.
With buyers visiting an average of nine properties before settling on the one they want to call their own, sellers need a distinct advantage over the competition. Location is still the primary factor for buyers, but a property's condition also plays an important role. The survey found properties with updated kitchen cabinetry, hardwood flooring, new windows, an open-concept and a finished basement appeal most to today's selective purchaser."
Renovations can drastically influence resale value. The survey showed that the wealthiest homeowners (minimum $150,000 annual income) spent the most on renovations, $37,663 on average. Those earning less than $30,000 spent the least at $8,263. Renovation costs typically increased with housing values, with the cost of refurbishing a home priced at more than $500,000 topping out at $55,974.