January 24, 2011

Buy & Renovate or keep looking?

Zoocasa Ask the Pros Question of the Week:

“I found an almost perfect 3br townhouse in Lawrence Park (in my budget) but it has an 80’s kitchen. Is it cheaper if I renovate it myself or how much does a renovated kitchen up the price of a listing?”

Answer:

If you know what you are doing, it is always less expensive to do the work yourself than to pay someone else.

Of course, if your work does not match the quality of the professionals then you will not be adding as much value to your property and in fact, risk decreasing the value of your property if you really don’t know what you’re doing. In general, major renovations add value and the kitchen is amongst the highest in payback; however, virtually no renovation returns more than the cost of the renovation.

For the specific property you are thinking about, ask your REALTOR for an idea of the value of the property before and after updating the kitchen. But if you are going to live there for a while and a nice kitchen is important to you for your enjoyment, and this is the best home you have found and you can afford it, plus the reno…. then what are you waiting for!? Enjoy!

See more answers to this question.