How much will my home be worth after renovations?
In our line of work, we get asked a question that most homeowners ask. It is a legitimate question because it deals directly with how much money they might get after selling their house. “How much will my home be worth after renovations?” is the question we get asked. In today’s article, we tackle the pros and cons of renovating your house before listing it on the MLS.
What is a home After Renovation Rate?
When deciding to renovate it is important to know a couple of things. Inside of the real estate world, after renovation value (also known as AVR) is the value of your home when you have completed the desired renovations. It looks hard at the total costs of renovations and the current market value of your home. This is one of the most critical terms to understand when it comes to understanding the value of your home post renovations.
Your home's AVR is important to consider if you’re thinking of starting any kind of renovations—it can leverage your borrowing access if you need a loan. If you’re considering paying a lot to upgrade your kitchen, roof or floors, for example, you most likely want to know that this effort and out of pocket expense will pay off in the end.
How much does it cost to renovate a house?
According to this article, the cost of renovating in Ontario is $25-$30 per square foot excluding materials. Depending on the type of house and project, the average recommended spending for remodeling projects will vary. There are standard suggestions for spending a certain percentage of the home’s total value based on the room or upgrade. For example:
Kitchen—16%
Basement—10-15%
Master Bedroom—12%
Full Bathroom—6%
Roof—2 - 4%
Windows—5%
Floors—3%
With these suggestions, is renovating your home something that makes sense for you, your wallet and your timing?
Home Renovation Risks
In the end, you are taking a risk. You might be gambling that the market remains in its current state, that buyers will appreciate your upgrades and that you will make a return on your investment. The question is, can you afford to take that risk?
When considering whether or not to start home renovations, there are a couple items to keep top of mind.
Can you afford to take out a home renovation loan if the ROI is not met?
How long can you afford to keep paying your current mortgage PLUS a home renovation loan if your house sits on the market for 60+ days?
Are all the building supplies available to complete the renovations?
Is the stress and time commitment worth it?
Do you need to sell your home faster than the traditional real estate route?
These are just a few of the questions to consider before starting, or completing, home renovations.
In Conclusion
We buy houses. In fact, we buy houses in the Durham Region, the York Region, Simcoe County and all throughout Ontario. We offer homeowners a different option to sell their home fast! Home renovations take time and a lot of effort. The people we help are needing to sell their homes quickly. We buy homes in their current state. It doesn’t matter the condition or how badly renovations need to be made. We’ll buy it from you now! We are cash house buyers which means we are able to guarantee losing and get money into your pocket much faster than the traditional route.
If you would like to avoid taking on the task and project of completing home renovations and sell your home fast, we’d love to talk to you. Call us today at 905-260-9779. Or, if you would like to get an offer within 24 hours, click here.
