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Adding Resale value to a Small Condo
Sharp101
TorontoRegistered User regular
TorontoRegistered User regular
Hello again H/A!
The girlfriend and I have been living in a fairly new Condo in Downtown Toronto. It's a two bedroom, one bath, around 800-900 sqft. We (her parents) bought it last september for around $330k, which was fairly average for the area and size. It didn't have much in upgrades (just hardwood floors and stainless appliances)
We live in a very 'up and coming' type neighborhood, I think we were one of the first new Condo Buildings in the area. Within two blocks of us is a sister building that just opened, 3 more condo buildings between 6 and 30 stories (half built) and another 2 or 3 lots waiting to break ground.
We're looking at all this and thinking we might be able to do some small renovations and add some value to the place to potentially sell in the next year or so. Canada is also having a Renovation Tax Credit that we should be able to apply for this year if we do some work on the place. My father is a semi-retired general contractor and I've helped him work off and on for years, so a lot of the labour we can take care of ourselves.
So, these are some of the things we were thinking of doing with a brief explanation.
New lighting in the Kitchen/Living room
The current fixtures are horrible. The barely provide enough light, and are horribly placed.
For example, in the small kitchen there really is only one 'prep area' on the counter. When working here, the only light source is on the ceiling behind you, so you get nothing but your own shadow on the countertop. The living room and a single fixture on one end of the long/narrow room, leaving the other side in darkness.
I figure buying some newer, high quality fixtures and placing them in better locations would be appealing to any potential buyers.
New carpet in the bedrooms
The current carpet is pretty bad. It's that standard, super cheap looking, super thin Condo carpet that's been stained in a few places (mostly from the previous owner)
Seems like a no brainer to replace this with something nice.
Hardwood in the 2nd bedroom.
Right now there is hardwood in the living room and small hallway to the two bedrooms. It's fairly nice flooring, but there is some small damage/chips in the hallway.
We use the second bedroom as an office instead of a bedroom, and I could see any future owners doing the same due to it's size. We were thinking instead of replacing the carpet in this room, why not replace it with hardwood? We would then either need to match it to the current flooring, resurface the current flooring, or replace it all.
Granite countertops in the Kitchen/Bathroom
Both the kitchen and Bathroom are fairly tiny. They both have the standard laminate countertop and it seems like an easy decision to replace them with granite, because everyone loves granite. I think.
So basically I'm wondering, do these upgrades make sense? Will the add value to the condo and raise our potential asking price? Any other suggestions?
(We're not planning on selling soon, but it is an option. )
The girlfriend and I have been living in a fairly new Condo in Downtown Toronto. It's a two bedroom, one bath, around 800-900 sqft. We (her parents) bought it last september for around $330k, which was fairly average for the area and size. It didn't have much in upgrades (just hardwood floors and stainless appliances)
We live in a very 'up and coming' type neighborhood, I think we were one of the first new Condo Buildings in the area. Within two blocks of us is a sister building that just opened, 3 more condo buildings between 6 and 30 stories (half built) and another 2 or 3 lots waiting to break ground.
We're looking at all this and thinking we might be able to do some small renovations and add some value to the place to potentially sell in the next year or so. Canada is also having a Renovation Tax Credit that we should be able to apply for this year if we do some work on the place. My father is a semi-retired general contractor and I've helped him work off and on for years, so a lot of the labour we can take care of ourselves.
So, these are some of the things we were thinking of doing with a brief explanation.
New lighting in the Kitchen/Living room
The current fixtures are horrible. The barely provide enough light, and are horribly placed.
For example, in the small kitchen there really is only one 'prep area' on the counter. When working here, the only light source is on the ceiling behind you, so you get nothing but your own shadow on the countertop. The living room and a single fixture on one end of the long/narrow room, leaving the other side in darkness.
I figure buying some newer, high quality fixtures and placing them in better locations would be appealing to any potential buyers.
New carpet in the bedrooms
The current carpet is pretty bad. It's that standard, super cheap looking, super thin Condo carpet that's been stained in a few places (mostly from the previous owner)
Seems like a no brainer to replace this with something nice.
Hardwood in the 2nd bedroom.
Right now there is hardwood in the living room and small hallway to the two bedrooms. It's fairly nice flooring, but there is some small damage/chips in the hallway.
We use the second bedroom as an office instead of a bedroom, and I could see any future owners doing the same due to it's size. We were thinking instead of replacing the carpet in this room, why not replace it with hardwood? We would then either need to match it to the current flooring, resurface the current flooring, or replace it all.
Granite countertops in the Kitchen/Bathroom
Both the kitchen and Bathroom are fairly tiny. They both have the standard laminate countertop and it seems like an easy decision to replace them with granite, because everyone loves granite. I think.
So basically I'm wondering, do these upgrades make sense? Will the add value to the condo and raise our potential asking price? Any other suggestions?
(We're not planning on selling soon, but it is an option. )
Sharp101 on
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Crown moulding?
Hardwood throughout? I would think it would look weird to have carpet in every other room (which is what it sounds like it would be). Refinishing wood floors can fix a ridiculous amount of damage. However, doing the entire condo in the same new flooring could look very nice.
Are the appliances stainless steel?
Crown Moulding is something I hadn't thought of. Currently the ceilings are all that horrible popcorn spray garbage. I plan on scraping that all off. Maybe I can put crown up after that.
As for the flooring, Right now the 'landing', kitchen and bathroom are all nicely tiled. (and flow into eachother). The livingroom is attached to the kitchen, has hardwood and flows into a short hallway. Then off that hardwood hallway are two Bedrooms which are carpeted. Would it be wise to leave the main bedroom with carpet, but get something really nice? I know I love the feeling of soft, plush carpet on my feet in the morning :P
And yes, the appliances are all stainless steel.
Yeah, "green" is a lot of bullshit, but bullshit sells.
Bamboo floors are key.
Really, if you're not in a huge rush just name the price and wait for the sucker who's willing to buy. Housing price (especially now) is wicked relative and can be expounded by inflating sticker price and relying on a speculative market. Remember that $$$=status, and if you're in an "up and coming" neighborhood, that's your biggest selling point. Anyone who will big inflated prices will also come in and do work on their own. A lot of higher-income (for the area) buyers are going to see "issues" they need to fix regardless. Be firm on your work and your price and let it sit on the market for as long as necessary to get the price.
Be aware of the hard-cap on sale price for your condo. In your area there's going to be a certain price that buyers aren't going to be willing to go over for a condo your size. Once you hit that point, it really doesn't matter what you do because you're not going to see a return on your improvements. This is especially true with condos because a condo building has a certain character and class of resident. Someone willing to pay $500,000 for a condo won't be interested in living in a building with mostly $250,000 condos.
Granite is nice but it's not the whiz-bang-pow it used to be during the housing boom. People know how much it costs and if you put it all over the place you are basically telling people "I expect to earn a high price on my condo, so don't even bother putting in a reasonable contract." There are a lot of comparable materials that look just as nice without the high price.
ITTET you don't want to look like the fanciest place on the block. You want your house to look like a fair price. When it comes to upgrades, you should see what's selling in your area and see if you can pop in on an open house. Scope out the competition. Since you've got a condo you know the kind of things you're looking for, which will make it pretty fast.
I know in my neighborhood, which is decent, putting granite everywhere is a great way to have your house sit on the market for months because you're too pricy.
They are still negative in rate of return. Unless you are a professional, I'd stick away from doing anything complex with the aim to enhance the sales value of the house.
Lighting fixtures; Sure, they are cheap, the cost is minor and they will help the condo look better for sale. They probably won't actually lead to an increase in asking price.
Granite countertops; Probably not. Unless you are into remodelling you will be spending more than you get in return, even with fairly cheap granite available.
Carpet; I'd just steam clean it well. People expect to make alterations to an old condo/house and carpet replacement isn't terribly expensive.
Or in short, small stuff to stage a house is good. Low capital cost, helps avoid an otherwise fine house with some minor problems from being passed up. High cost things with an eye to return on investment? I think this is a losing bet. Kitchen and bathroom remodels are 'good' only in that they are less horrid than other changes in terms of ROI.
Home Inspection and Wind Mitigation
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The new solution was a textured paint, which we thought would be stupid because we just took off a texture, but it was SO much better than the popcorn. It had sand in it or something and was simply rolled on, and then painted over.
Thanks for the advice guys.
People list the kitchen and bathroom because when you are selling people are impressed by details.
The kitchens and bathrooms have a lot of details so it is best to invest the majority of money in these rooms. Things like fixtures, cupboard space stove tops and ovens. Dishwashers are nice, but in all honesty most people aren't that excited by one.
Lighting is a huge one, especially in a bathroom. And further more around the mirror.
Little things like painting the walls with a fresh coat of paint and replace the power switches and lights are good little upgrades as well for regular rooms.
I would look closely at the cost of reflooring the study, it might be cheaper to paint and re-curtain/new blinds the window.
Satans..... hints.....
I would never buy a condo without one either. Apartment maybe, but a condo/townhome without a dishwasher? Pass.
Get a stackable washer & dryer set, and they'll be throwing money at you.\
edit: Also when you start showing the place, remove any personal items like pictures, magnets, etc. And if you have any designer friends, they might love the chance to do up the rooms for their portfolio as well.
As far as your ceiling, what you want to remove is stucco, not "popcorn," and it's a pain in the fucking ass. Unless there is a really specific reason to, I wouldn't bother. You aren't increasing the value of your home because your ceilings will be flat instead of stucco, and no potential buyer is going to consider stucco ceilings a deal breaker. As for crown molding, that is an expensive endeavor that is extremely taste dependent. Not everyone likes the look of it. I will admit that I like the look of flat ceilings better, and they're much easier to paint and edge, but I wouldn't bother removing it from my house. Too much work for virtually no pay-off.
As has been said, the biggest areas to add upgrades will be the kitchen and the bathroom. All other rooms must simply be clean, neat, and fresh. Don't go adding expensive details to your living room, for example, when money could be better spent on an eye-catching back splash in your kitchen. (DIY project for around $100)
You mentioned granite counter tops, but I've been told that they don't give a sufficient return on the investment involved. I've heard good things about cement, especially if your decor is very modern, and it's very inexpensive.
Really, when it comes right down to it, the most important things about a condo are things you can't really change, like the size, floor plan, and location. Just make sure you give the place a fresh coat of paint where it's needed in very neutral colours, have a nice looking kitchen and bathroom, and ensure there are no problems that will turn off potential buyers.