June 28, 2011
Over-Renovating for the Area
by Kelley Skar
I have seen this time and time again throughout my career in real estate, a vendor has decided to renovate a home and flip it without having done their due diligence first.
Renovating is ok, I mean it is better than ok, the more fresh and new you can make your home the better off you will be. What I am talking about is “Over Renovating” for your neighborhood.
Here is a hypothetical, and please know I am not knocking any neighborhoods in this post, you have a home in Forest Lawn in the Southeast of Calgary and you have decided you are going to do some renos before you sell. What do you do? Do you go and price out the biggest and best of everything? The most expensive carpet? The highest end hardwood floors? Granite? My advice…NO! Here is where I would start:
- My first step would be to contact my REALTOR®, let them in on what it is I am planning to do and then ask them to take me on a tour of some of the homes that are for sale in the area. Maybe pull up some comparable properties that have sold recently so that you have an idea of the renos that have been done that have resulted in a successful sale.
- I would then begin pricing out materials that are going to fit with the neighborhood. If the comps don’t have Granite, Hardwood or high end carpet then you don’t need all these expensive materials.
- Does the home need a new roof or siding? Some of these will NEED to be done or you can expect to take them off the sale price of the home.
My point is this…if you over spend and over renovate for the area that you bought in, you will never see the return that you are expecting. If the comps have regular finishings, Arborite countertops, carpet and lino instead of tile and hardwood, then renovate along the same lines as the comps.
One last tip…if you are NOT handy…HIRE the work out to professionals that know their job and have experience. There is nothing worse than walking into a “Renovated” home and you can tell the “Handy” homeowner did all the work.
Want to know what your potential return on investment would be for your renovations? Here is a wonderful resource for you to get an idea as to what each renovation will net you at the end…go ahead and CLICK HERE.
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About the Contributor
Kelley has consistently been in the top 5% in sales since he started full time in the real estate industry in 2008. He went through a major shift in his marketing plan at the end of 2009, recognizing the trend, and making the move towards digital marketing including websites, video, blogging and social media. Kelley is incredibly passionate about the use of technology and social media in his business and is often sought out for advice from other Agents from across North America. Kelley’s primary websites are: http://nwcalgaryliving.com and http://kelleyskar.com.
To connect with Kelley through Social Media follow him on twitter.com/kelleyskar and on Facebook.com/kelleyskar. If you have questions or comments you can reach Kelley direct at [email protected].