Buying a home is the biggest purchase that many Canadians will make in their lifetime. It’s also a great way to build wealth through home equity. Help clients – especially first time homebuyers – make the most out of their investment with these 10 tips to increase their home’s value over time.
1. Update the kitchen and bathroom(s)
Real estate professionals will tell you that the kitchen sells the home – and the bathroom is a close second. That’s why the kitchen and bathroom are the most important rooms to prioritize for any upgrades or work before selling. Appliances, finishes and decor become noticeably dated quickly, but there are simple fixes homeowners can do to modernize these rooms in a cost-effective way. If a full redo isn’t in the cards, suggest replacing the countertops or backsplash alone, or investing in new matching finishes, including doorknobs and handles. Giving the space a fresh, clean look is key to creating appeal for prospective buyers.
2. Finish the basement
Completing a basement or other unfinished space can be a great way to add value to a home. Where possible, adding a separate entrance could further boost a home’s market value. Particularly in medium-sized cities, such as Calgary, Regina, Winnipeg and Hamilton, there are many homes with unfinished basements that could see their market value materially increase by completing this space. Not only is there an opportunity to increase the livable space, but there may also be an opportunity to add an income suite. Either way, completing unfinished spaces can deliver an excellent return on investment.
3. Create curb appeal
First impressions are critical. That’s why it’s important for homeowners to spruce up their home from the outside. Hiring a lawn service company to do some low maintenance landscaping, installing outdoor lighting, or redoing the driveway can go a long way to improving a home’s curb appeal. Even just pressure washing the exterior and walkways leading to the home can make a big difference.
4. Stage the home
Staged homes can sell 73% faster, and increase a home’s value by thousands of dollars. Home staging can help showcase your home’s best features and capture the attention of buyers. If the home is in an area that is popular for young families, staging the home with furniture and decor to appeal to that demographic can significantly boost the value of the home. The key is to help prospective buyers imagine themselves in the space and make an emotional connection with the home.
5. Clean and declutter
The best thing about this tip is that it doesn’t cost a thing. Particularly for homeowners who lack the time or resources to fully stage a home before a sale, remind them that a clean, uncluttered home will improve listing photos and showings, whether virtual or live.
6. Paint
A fresh coat of paint can go a long way. It’s both a simple and cost-effective improvement to any room. Suggest light, neutral wall colors so that buyers are not distracted or turned off by colours they may not like, and can more easily imagine the home as their own.
7. Do some simple maintenance
Encourage clients to get any nagging tasks out of the way before they list their home for sale. Take a walk around the home and make a list of anything that requires attention or could just use some extra love. This could mean fixing a leaky faucet in the bathroom, cleaning the gutters, or replacing a squeaky floorboard.
8. Open up the floor plan
If your client is up for a bit of a bigger project, knocking out a wall may help open up the space and create a more desirable layout. Buyers generally favour a more open floor plan, particularly around the living room, dining room, and kitchen.
9. Invest in energy-efficient appliances
Home buyers prefer eco-friendly features, especially since energy efficiency saves money on their utility bills. If your client needs to replace their dishwasher or washing machine, encourage them to look at energy efficient options.
10. Upgrade to a smart house
Thermostats, security systems, and other smart home features are all very attractive features to a prospective client. The ability to connect appliances to a smartphone means that homeowners can do laundry even while they aren’t at home, or set schedules for heating and cooling depending on when everyone is in or out of the home.
While these projects range in cost, homeowners may choose to invest throughout their time in the home, rather than doing it all at once. While homeowners are wondering how they could afford some of the bigger projects, there are many financing options that you can suggest, including a private mortgage. Whether it’s a second mortgage, a home equity loan, or another flexible solution, CMI can help.
Use a lending partner who gets your clients the flexible financing they need. Submit your deal today and see why brokers choose CMI.