Okay, so they're telling us it's going to be harder to sell your home in 2009. Those of you who don't let others tell you what life is going to do to you have no doubt thought about some renovations you can do to your home that will make it stand out in the crowd when you sell.
This advice from Elizabeth Blair, a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.
If you live in a freehold house, you should be spending an average of 1% of your home value annually, on maintenance, just to keep it in good repair and to prevent it from declining in value, according to "Home Buying for Dummies" by Eric Tyson and Ray Brown. And according to the Appraisal Institute of Canada's 2004 Home Renovation Survey, professional home improvements and renovations will bring the following return on your investment:
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Top Four Renovations that will give you the Highest Payback Potential |
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Bathroom renovations (75-100%) Kitchen renovations (75-100%) Interior painting (50-100%) Exterior painting (50-100%) |
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Other Renovations Payback Potential |
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Roof shingle replacement (50-80%) Furnace/heating system (50-80%) Basement renovation (50-75%) Recreation room addition (50-75%) Installing a fireplace (50-75%) Flooring (50-75%) Constructing a garage (50-75%) Window/door replacement (50-75%) Building a deck (50-75%) Central air conditioning (25-75%) |
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Six Renovations that will give you the Lowest Payback Potential |
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Landscaping (25-50%) Interlocking paving (25-50%) Building a fence (25-50%) Asphalt paving (20-50%) Adding a swimming pool (10-40%) Installing a skylight (0-25%)
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Homeowners can also visit the "Appraisal Institute of Canada" website, to try out their on-line tool which helps you understand what value you can anticipate to see from the various improvements that you make on your home. The name of this particular tool is called RENOVA and it is an excellent resource for homeowners. You may visit the site, by following this link below:
http://component.aicanada.ca/e/resourcecenter_renova.cfm
Remember that the referenced website link is only a guide, and you should always carefully consider that proper appraisal values can only be provided by a certified professional appraiser holding an AACI or CRA designation. It is also important to mention that an appraiser will also assess other factors, about the home, to complete accurate appraisal results, for example, the neighbourhood, recent real estate activity, lot, location, etc.
Elizabeth Blair services mortgage clients in Mississauga and all over the Greater Toronto area and can be reached directly by phone at (905) 510-5785, by email at eblair@mortgageedge.ca or you visit her website at www.missmortgage.ca
Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.
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