It's renovation time...

Spring has spring and many folks have the renovation itch on their minds!

Within the last month, I had the sincere pleasure to speak with Donna D'Amour, a freelance writer for a new publication "Your Atlantic Canada Home".

This was an informal interview and I had the opportunity to speak about many misconceptions about the renovation process.



If I am planning renovations to my home in the hopes of improving the resale value, which are the best to take on?

People complete renovations for two reasons, one as a personal taste / lifestyle choice and the other being for adding value to your property.

It should not come as a surprise that the kitchen and bathroom are focal points for any property. These renovations also tend to be the most costly! The renovations project should depend upon the price point of your home.

You do not want to be the Best or Worst property in a neighborhood. The surrounding neighborhood will provide the parameters for your property worth. Knowing the current and potential value of your property is your guide as to where you spend time and money. It is a combination of projects that add the greatest value such as painting, floor cover replacement, modern hardware and fixtures, good storage and landscaping are all interrelated.

I see a growing trend of clients converting cottages into year round residences,
particularly retirees. Their focus is towards making properties more comfortable such as upgrading insulation, modernizing ceiling or wall finish, replacing older windows with more energy efficient products, installing a more conventional heating system, kitchens and baths and upgrading appliances.

We all know energy costs are not going down, so there has been increased interest on high efficiency / specialized products such as dual flush toilets, and energy star rated appliances.


What kind of return on investment could they produce?

The Appraisal Institute of Canada has developed a public web based guide identified as: RENOVA, which showcases to the consumer an estimated return on their investment, based on professional appraisers surveys. This interactive model is available to the general public free of charge and highlights over a dozen common items that are often renovated. For kitchens and bathrooms, expect a return of 75-100%. The Institute’s website is: www.aicanada.ca

Do you have any tips for economical renovations that can have a positive impact on resale value? (People may have limited resources, yet still want to improve the value.)

We’ve all been impacted by the downturn in the economy, so every penny counts. By far the most economical and highest return on investment is interior and exterior painting, which typically commands up to 100% payback.

Other budget orientated items would be upgrading light fixtures and modern light & wall switches, ceiling molding, baseboard trim / interior doors, painting kitchen cabinet doors, upgrading kitchen and bedroom hardware, replaced worn flooring and kitchen/bath counter tops.

Decks, awnings and solar exterior lighting are popular for homes and cottage and return up to 75%.

What are the renovations that do not produce much if any return on investment as far as resale value is concerned?

Any over improvement to a home or cottage could be considered a poor investment.
Having an in ground pool or a $50,000 designer kitchen within a cottage is not common and would not return much value. Pools are not high maintenance or expensive anymore but appeal to a certain segment. Items such as skylights, whirlpool tubs or a fence typically have returns as low as 25%. Although these items can enhance a sales.

Another factor that is often misjudged is the quality of workmanship. Poor quality craftsmanship and incomplete finish can contribute negatively to your property value. An example would be a residential market that typically contains two bedrooms on the main level. Removal of one room to expand the bedroom to include an office or walk in closet would reduce your pool of potential purchasers and will likely reduce property value.

How do I know what my house is worth before and after renovations?

Professional appraisers complete this type of analysis routinely. They have the sales and experience to interpret both markets and form an opinion of value prior to and after your proposed renovations. Each improvement is itemized to ensure that your proposed changes are functional, adequate and is in conformity with your influential marketplace. It is highly recommended that you hire an appraiser prior to starting any renovations, to ensure you enhance value to your property.

What would it cost me to hire an appraiser - I realize this may vary depending on the property and time it takes but could you give me a range?

For an urban or recreational property valuation, expect to pay $300-400, which is similar to what you pay for a home inspection.

Is there anything I didn't ask that you would like to add?

Nova Scotia, New Brunswick and Alberta are the only Canadian provinces where appraisers are licensed by the Government. The appraisal standards, ethics, insurance and requirements are those of the Appraisal Institute of Canada. The Nova Scotia Real Estate Association publishes a directory of professional fee appraisers for all areas in Nova Scotia. This can be accessed at www.nsappraisal.ns.ca.
Each valuation is independent, objective and unbiased. Experience truly matters and it is best to hire an appraiser who is familiar with the type of property being considered and the geographic area.

The two most common mistakes with renovation or construction are poor workmanship and failure to plan. There is an adage that goes - ” Fail to plan – Plan to Fail”. For example you shouldn't’t replace your bathroom fixtures and later decide you now want a new ceramic tile new floor. Local home improvement stores have much free print materials and staff. Use their staff and resources in your planning stage.


Here's the link for a trendy new magazine sponsored by Kent Building Supplies.

http://www.kent.ca/flyer/atlantic_canadian_mag_pdf.pdf