The 9 Step Plan: Maximize Your Profit Through Smart Renovations When You Sell Your Home
Tanya LaRose 0 comments 01.07.2021
- Consult A Professional – Prior to tackling home renovations to increase your homes saleability, you will want to have your trusted REALTOR® come for a walk-through to advise you on your current home value and which upgrades might increase that home value. Ask them about a selling timeline as well. If you need recommendations on trades people, any good REALTOR® will have a rolodex of recommendations for you as well.
- Review Your Mortgage – Are you allowed to sell free and clear, or do you have a substantial payout penalty? Is your current rate better than any other available rate? Is it a possibility to add some of your renovation capital to your mortgage? Your trusted mortgage broker can advise you accordingly.
- Start A Home Renovation Binder – Your binder will keep your mind and bank account organized. Include your TO-DO list, minimum/maximum budget, deadlines, contractor information, warranty information, receipts, etc.. You can set this binder out during showings when your house is listed so the buyers know exactly what has been done to the home recently.
- Create A Budget – Your budget will include minimum and maximum amounts to allow for fluctuating products and services. You can even review second-hand product sources like kijiji.ca or the Market Place on www.facebook.com for added cost cutting. However, cutting corners on products is not recommended, otherwise the cheap quality will dimmish the renovation impact.
- Interview Trades People – Check their reviews, look for warranties, ask for a formal quote, and find out if they guarantee their work by a certain deadline. Remember that sometimes big companies do not always do great work and sometimes small businesses just starting out will really shine by delivering excellent work. The key word is “sometimes” so be sure to pay your due diligence by interviewing accordingly.
- Monitor A Timeline – Plan to be complete at least two weeks ahead of your deadline. Human error and unexpected obstacles will undoubtedly leave you with a few touch-ups to circle back to. You will also need a few extra days to declutter and stage your home décor.
- Pull Permits – While you do not have to call the city and inform them of every stroke of paint, there is a list of home renovation items that must be permitted, and it is up to you to consult your city, town, or RM regarding those.
- Clean The Mess – Home renovations can be downright filthy! We are talking everything from a thick layer of dust from drywalling to multiple scrap pieces from demolition to foggy windows from landscaping. Cleaning this yourself may be very time consuming so you may have to budget for a professional. Do not forgot to get your ducts cleaned and change your furnace filter.
- Sweat Equity – The best home equity is sweat equity. Pull up those sleaves and paint those walls, replace those burnt-out light bulbs, and plant some flowers for curb appeal. However, you will want to trust a professional when it comes to many trades like electricians, plumbers, and carpenters.
- Trade Service – What skills and services do you have? If you are a plumber, maybe you can trade services with an electrician friend. Review your own rolodex of family and friends to see if there is an option to trade services and maximize your end goal profit margin.