Our New Year gets off and running instantly with the Winnipeg Renovation Show this coming weekend Jan 13 – 15th. Although preparation and planning are often well underway in October/November for the show, the final details all happen right after the Holidays. Our booth is set up in the shop and we will be doing the final design and packing Monday so we can deliver and start set up! We have an extra special booth planned this year with a fabulous new look! We are also doing 2 stage presentations, Friday 13th at 5:00 pm “Planning your Kitchen or Bath Renovation”. We take you through a renovation from concept to completion. Sunday Jan 15th at 2:00 “Ensure the Best Return on your Renovation Dollar” where we show clients the best improvements to ensure they not only get a full return on their renovation dollar but how to learn to MAKE money on their home renovation by increasing the value of their home significantly higher than the cost of their renovation!
Quite often when clients contact us regarding a renovation, they have an idea of what they would like to do but have not worked out all the details! It’s critical to determine what’s not working for them and what they need to improve the space. Sometimes after speaking to the client we can find that what they thought they liked (ie. their friend recently had done) would not work great in their space or for their family. However, we always find an alternative that works beautifully for their home and family. It’s equally important to take in the budget and the value of the home. Every home has a “critical ceiling value”. This is basically the top selling price you can expect for that home based on similar properties in the neighborhood. We want to ensure that the renovation doesn’t push the home owner’s investment in that home well beyond what they can hope to obtain in a selling price. People renovate for many different reasons but I have never met a client who didn’t want to get back the money they invest in a renovation. So home value plays just as important role in determining the details of the renovations as does the functionality and logistics of the renovation. Over the last number of years, many home owners were forced into bidding wars when purchasing their homes. Some have seen a market correction in the value of their home, lower than what they initially paid. Investing properly in an upgrade can help bring the value of the home back to where they can get their money back or even make money on their home. It’s all about knowing the numbers and making them work in your favor! Only then can we look at the different possibilities within the property budget to determine the best solutions for your family and your home!
I am frequently called in for alternate ideas or a second opinion on a design/reno quote. The estimate was not through Maximum or our partner company, KAT Reno and I never ask who the estimate is from. A homeowner whose home is worth $280,000 – $300,000 finds it very unrealistic to spend $100,000 – $120,000 on a kitchen renovation. It is really shocking how many times estimates are given well above what the property value dictates is reasonable for the home owner to spend. In the reno world, anything can be done for a price. However, our job as professionals is also to help the client determine what the best option is for their home and situation. Personally, I could never feel good about a job knowing the client would not get the money invested in their renovation back from their home sale. At the very least, I would ensure the client was aware of the comparable properties and values before they decided to proceed, knowing full well that if they had to sell in the near future they would not get their money back. A common misunderstanding is that if they use better quality materials, they will then get more money. Unfortunately, this is rarely the case. Once you go into the higher price range, the buyers often have many more options available to them, frequently newer homes in newer neighborhoods. So for a buyer to buy an older, remodeled home, at the top price range in their neighborhood, the buyer MUST have a strong desire to be in that neighborhood specifically. Their Realtor will often tell them that the home is over-priced and they would get better value elsewhere.
One of the biggest rules in Real Estate is that you make money buying the ugly house on a nice block and doing the improvements. Buying the nicest house in an average neighborhood typically means there is little room for your home value to improve as it must wait for the neighborhood homes to increase in value before your home value increases. However, purchasing a dated home with sound structure and mechanicals and spending intelligently on the right renovations can add tens of thousands of dollars to your net worth! That is after all how real estate investors make a living! Knowing what to do and how much to spend is the key to building additional equity in your home and adding value to families net worth! Join us for more details at the Reno Show this coming weekend!