We’ve seen sales slow and prices drop slightly in the Calgary housing market and this is cyclical – we’ve seen it before and we’ll see it again. When this happens, there is also another trend: renovations.

If homeowners were thinking of selling, many are holding off for now but many decide to make some changes to their home – update the areas that were why they were going to sell in the first place.

Not all renovations are created equal, however. Some you do for you: you plan to stay in the home for a longer period of time and the renovations just make it liveable for you. There are others that you do in order for it to sell quickly in the Calgary housing market, and at a better price, when it comes time.

I thought it would be interesting to get some input from some of Calgary’s top Realtors about what renovations they see adding the most value to a homier the current Calgary housing market. Here’s what they had to say:

Wendy Kelman, Coldwell Banker Mountain Central

“When looking to increase value on your home, remember people often judge a book by its cover.
It is important to make a good, memorable first impression.  Here are a few ideas for the outside of your home that will definitely give you a high return on investment.
  1. “By far the most value for your money is a new front door. It is one of the lowest-cost projects you can do.  Starting at around $1000, you can instantly upgrade that curb appeal.  Adding a paint colour that makes it ‘pop’ and Welcome buyers into your home.  It requires little maintenance and besides improving the looks of your home, if you are replacing an old door, you are likely increasing your home’s energy efficiency as well.  Whether adding a steel door or maybe you would like to invest a little deeper to beautify your home with a more expensive wood door, a new door goes a long way.
  2. “New siding entirely changes the look of your home.  Vinyl siding is the most affordable.  Fiber cement siding, or Hardy Board also shows a stronger return on investment.  It is more durable and fire resistant;  thereby, can also reduce your home insurance payments.  Check with your insurance broker to learn how this home renovation can actually result in you paying less. Home buyers also see quality in this siding and so, while ‘looking pretty’ does hold some weight when people are buying- adding safety allows a buyer to feel confident they are making the right choice.
  3. “Adding a new deck is relatively inexpensive home improvement, when compared to renovating a kitchen or bathroom.  Outdoor living has become more sought after in recent years.  Having that backyard oasis, that allows you to forget about your busy work week and makes a huge impression on buyers.  Consider privacy an important factor- an inexpensive gazebo placed on the deck makes it a cozy, inviting area to relax.
  4. “Although not cheap- new windows most definitely add value to your home.  Not only do they look fantastic from the curb, of course, but again, increasing your home’s energy efficiency reduces your monthly heating costs.  Many homeowners choose to break up the window investment- maybe doing the front of the home one year, and get to the back a year or two later.  This renovation sits at the top of good investments for your home.
  5. “A Garage door replacements project is a big boost for your home’s curb appeal.  A typical, two-car steel door will cost about $1500.  Not too hard on the pocket book, while definitely enhancing the marketability of your home.

“If people are going to judge a book by its cover…let’s give them something to look at!  When the buyers pull up out front of your home, you want them to feel good about what could potentially be inside.  Pride of ownership is something that every buyer wants when home shopping.  Get the best return by adding all or some of the items discussed above to ensure that Offer to Purchase gets presented sooner, rather than later.”

Kevin Lauzon, RE/MAX First

“When selling homes, I typically advise my sellers to focus on renovating bathrooms & kitchens as they most always return 100% or more of any dollars spent in these 2 areas.

“Some of clients would like to finish their basements. Although a professionally developed basement with the PROPER layout will greatly aid in selling a home, I advise my sellers to only consider finishing their basement if they intend to stay there for as long time since basement development tends to only return 50% on any dollars spent there.

“One of my pet peeves are people who do a full renovation of their house but keep their original 25+ year old windows or leave 25 year old shingles on the roof. I advise my clients to make sure the building envelope is sound BEFORE starting to spend any money inside.”

Sarah Paranych, Century 21 Bamber Realty

“In a downward market, most homeowners tend to turn towards renovating or upgrading their current property over selling it for a new one. When considering a renovation, there is no right or wrong answer when it comes to which will provide the most resale value in the future.

“While kitchens and bathrooms are predominantly the go to renovation, they won’t make much of a difference if you have a leaky roof or a broken furnace. Many buyers want to know that the expensive mechanical items have been taken care of and ensure they won’t need to be replaced shortly after they move in. You can still live and function in a home with a seafoam green tub, or old laminate countertops, but if there’s no heat or you constantly have water spots in your ceiling, those things need to be taken care of immediately.

“If the basic mechanical is in good order, the next best step would be to look at the comparable properties in your neighbourhood. If you’re the only house in the area with one bathroom, a great investment would be finding a way to add in a second one, or your home could be overlooked quite easily.

“Looking at comparable sold properties in your area is the most effective way to find out which renovation project you should take on next. If you’re unsure of what may set your home or renovation apart from the future competition, your best resource is a Realtor. They have experience and insight into the real estate market and can provide you with information on what your property may need to help it sell quickly and for top dollar.”

Cindy Bauer, RE/MAX Complete Realty

“Our home is our personal retreat, our safe space to relax and destress from the day. Often times you move into a home and want to personalize and add your own style and flare.The best way to do this is through renovations.
“You can change the feel of your space with simple aesthetic changes such as a fresh coat of paint, adding new artwork and changing up your décor. Or you can do a complete over-haul to the primary living spaces, like replacing your kitchen with new cabinetry, granite, appliances and lighting.
“Other great options are to create a spa-inspired bathroom, a Zen-inspired outdoor living space or a 7 point surround theatre room. The key to great renovations is to determine the cost benefit; consideration must be taken to determine if the renovations and improvements add value to your home or if you are renovating for your own personal benefit and experience.

“Both options are great, as long as you are educated and understand there is a difference. When considering updates and renovations, it is always a benefit to find out from a realtor what the impact will be on resale. This will help you determine which direction to go and how much money to invest into each project.”

Now that you know what to tackle that will add value in the current Calgary housing market, how do you fund those renovations?

Well, obviously, having saved the money up front is always the best option. You pay no interest and have invested those funds into the home and will realize the benefit when you go to sell.
If that isn’t in the cards for you, the next best way to finance through the equity in your home. Mortgage rates have risen slightly in the last month but they are still near historic lows. They are also considerably cheaper, in terms of interest rates, than personal loans, personal lines of credit and of course, credit cards.
There is also a product call “Refinance Plus Improvements” which will allow you to complete renovations with a value of 20% of the as improved value to a maximum of $40,000. In the Calgary housing market you can typically do this with little financial output on your end.
You receive two quotes and submit these to the lender, you give the chosen contractor a small deposit to start work, the funds are released when the work is done and inspected and the contractor received the balance of what they are owed.
If you’re ready to do some renovations in the Calgary housing market, call me – 403-804-7002 – I can help you decide what the best course of action is for financing the renovations.