Here’s an informative London home seller’s guide to help you increase your home’s value and avoid costly repair scams when getting estimates and quotes, or doing some of the touch-ups yourself!
Each year, hundreds of homeowners unnecessarily lose thousands of dollars when selling their homes in London, Ontario, and the surrounding area. But they don’t lose the money for reasons you might think. They lose money because they unknowingly left it on the table for the buyer to pocket by failing to recognize their home’s hidden profit potential.
Discover the untapped potential of your home’s value. Unbeknownst to many homeowners, minor and affordable repairs to your existing home could yield significant returns, often surpassing their initial cost. However, not all repairs are equal; some can lead to substantial expenses. Understanding which repairs and improvements are worth your investment is key.
Those hidden profits exist in two areas.
First, some homeowners may not realize that even minor, inexpensive repairs to their existing home can generate many times their cost in additional home value. However, on the other hand, other repairs and improvements can be costly. Knowing which repairs and improvements to invest in and which ones to leave alone is critical.
Second, when many savvy homeowners decide to make profitable repairs before selling, they expose themselves to the potentially deceptive schemes of some contractors, which can drive up home repair costs.
It’s easy to understand how you might become overwhelmed with the entire process, between not knowing what to repair for maximum profit and navigating the world of contractor schemes. But don’t despair.
That’s Why I Created This Helpful Report
Below, I will reveal precisely what areas make sense to fix and what areas to leave alone, and not use “uninformed opinions” but real-world facts. Then, I will give you a “behind-the-scenes tour” of the games some contractors play when fixing your home (by the way, not all contractors are sinister – I know many with stellar reputations).
This way, you’ll be armed to the teeth with knowledge and strategies to stay one step ahead of the game and maximize the value of your home when you sell.
How to Select Home Improvements That Pay Dividends
Generally speaking, there are two primary approaches to home improvements. You’ll either splurge on your home because it’s your palace and you want a beautiful place to live, or you’ll take a more logical, pragmatic approach designed to increase your home’s value.
The problem is, you’ll never achieve both. Many homeowners expose themselves to the problems they try to avoid in home fix-ups.
Take Carol and Tom Jenkins, who purchased a home for $690,000 a few years ago. Since then, they’ve spent over $70,000 fixing it up and making it the “perfect” place to live. A few months ago, they listed the home for sale at $835,000. The best offer they received was only $799,000.
Their mistake? Spending money on amenities and features that were ancillary to the home’s value.
Just because you spend x on fixing up your home doesn’t mean you’ll recoup it when you sell. It doesn’t automatically increase your home’s worth by x amount. That’s precisely why you need to know which fix-ups pay off big and which ones will potentially cost you thousands of dollars.
Let’s take a look at the most common areas of renovation.
Painting Your Home
Painting 90% of the time is a good investment
Time and again, painting is one of the most basic yet profitable home fix-ups. There’s virtually nothing a coat of paint won’t fix, especially if you plan to sell your home within a few years.
Professionally, painting the home’s exterior costs an average of $8,250 and recoups nearly 100% of its price. But that’s not the good part of the painting.
Studies also show that painting has a significant impact on reducing the time it takes to sell. Reducing time to market means saving thousands in interest, taxes, and other overhead costs associated with maintaining your home and mortgage during the “for sale” period.
Rather than spending money on your home’s less visible “infrastructure” issues, you’re frequently better off fixing the cracked front steps and painting the entry and front door.
Kitchen Fix-Ups
Here’s an area that can mean serious profit when selling your home. Even minor, fundamental improvements to your kitchen can pay big dividends. For most buyers, the kitchen is the heart of the house. And that means it has the most significant profit potential. Here are a few suggestions for improving your kitchen without investing tens of thousands in remodelling costs.
In the short term, consider changing floors, cabinets, and fixtures. Consider sanding, staining, or painting dingy-looking cabinets to give them a fresh look. Replacing old cabinet hardware (a low-cost improvement) can make a massive difference in appearance.
Examine your countertops and other visually appealing surface areas. Also, look at the kitchen sink and fixtures. Replacing them with contemporary fixtures and a new sink can make a difference in aesthetics and hard dollars if they’re old and worn. In some cases, spending $6,000 on a cosmetically outdated kitchen can add as much as $15,000 in extra value to the home.
Adding New Space
Generally, improvements that increase the home’s functional space are good profit centers. For example, one homeowner had a storage area accessed outside and bordered by the laundry room. The homeowner knocked out the laundry room wall to the storage area, eliminated the outside door to the storage area, and added over 100 more square feet of storage and useable space, which is now accessed from the inside, not the outside.
The repair, which cost only about $3,000, increased the home value an estimated four times the cost to perform.
Converting an attic into a bedroom suite can instantly transform your four-bedroom home into a five-bedroom home and significantly increase its value. Waterproofing and improving a basement for additional storage (a job that costs about $5,000) can recoup well over its cost once the house goes on the market.
Look around your home for areas that can be easily expanded, refurbished, or functionally added to increase the number of bedrooms, bathrooms, or usable square footage. You’ve found a significant profit center.
Enclosed are Decks and Patios
Most outside improvements don’t fare well from a profit standpoint, but here’s a great way to increase the overall square footage of your home and its value. Consider installing a deck or enclosed patio.
This not only increases the aesthetics of your home but also its usability.
Decks and patios can range in cost between $6,000 and over $15,000 and, in most cases, recoup at least 90% of their price in extra home value – especially if you’ll be living in the home for a few years.
Adding an Extra Bathroom
According to Remodelling Magazine, adding an extra bathroom will pay for itself in most cases. The average cost of a bathroom addition is approximately $26,000, including all the trimmings – a marble vanity top, sink, ceramic bathtub and commode, and a custom tiled shower.
Here’s another profit-pointer: a second bath will add more value to a home than a third bath. When adding baths, consider using skylights, windows, and other methods to bring in natural light.
Now, here are a few areas you want to avoid.
Replacing Windows and Doors
Even replacing windows and doors with energy-efficient models is generally a bad idea. Investments in windows and doors will return only about 36% to 53% of their cost, while $1,280 worth of caulking and insulation can yield over 71%.
However, if your windows are old and leaking, you should replace them. Consider using standard-size windows rather than custom-cut models. The savings in your utility bill might pay for them alone. The minute you get into customizing windows with fancy shapes, bays and bows you can’t see from the street, you’re throwing your money down the drain.
Swimming Pools
Swimming pools have different value levels depending on the part of the country in which they’re located. The warmer climates tend to place more value on pools simply because of the number of days they can be used throughout the year.
However, in either case, there is generally little resale value. Pools turn off more buyers than they attract because they require expensive, time-consuming upkeep. Running a close second is the fear of liability from having a pool. Pool accidents can quickly lead to a court case as the subject of a negligence lawsuit.
The verdict? Be very careful before you go spending money on a new pool.
Gardens, Walls, and Fences
Fancy gardens and extensive landscaping are generally among the biggest losers. The same applies to large walls and elaborate fences. Homeowners can spend tens of thousands on making the grounds of a home beautiful, but rarely recoup their investment. Why?
Unless you’ve a horticultural buyer looking at your home, most buyers consider the time and money required to maintain lavish landscaping. However, that’s not to say that your home shouldn’t have lovely grounds. The same situation can work against you if your home is perceived as the “weak link” of the neighbourhood because of its landscaping.
The key is to design your landscaping in harmony with the surrounding homes in your area. If that requires spending a little money, so be it. But don’t expect to get it out at the sale price.
Functional and Structural Improvements
Here’s a sad paradox: Many of the improvements that have the most value for you as a homeowner often end up being the worst performers in terms of resale value. And usually, those improvements are from a functional or structural standpoint.
For example, adding a new plumbing system will make your life in your home more comfortable. Still, they’ll fail to recoup their costs in added home value unless you live there for some time.
Unfortunately, when certain functional items fail, you have no choice but to fix them. This includes water heaters, HVAC units, plumbing, and foundational problems. However, be cautious about where you spend your hard-earned dollars. As the saying goes, “If it ain’t broke, don’t fix it.”
How to Avoid Home Repair Rip-Offs
By now, you’ve probably identified several areas you could improve on your home and start reaping extra dollars in value. But there’s still another hurdle to overcome. And it’s an important one.
Thousands of consumers complain to the Better Business Bureau about home repair rip-offs each year. Home repairs are second only to car repairs on the “rip-off” list.
Here’s the inside story on the most common games played, plus several tips to help you avoid becoming another contractor victim.
Selecting Painters
The key to a great paint job isn’t necessarily in the painting but in the prep work. And this is the area where you will either get “taken” or get a great job. If you own a two- or three-story home, it isn’t easy to ensure every inch has been adequately scraped, sanded, patched, and primed when climbing up a ladder.
However, taking the time and effort may pay off big dividends. Here are a few tips to make sure you’re getting your money’s worth out of your painter:
Verify that all priming and preparation have been done. Ask your painter to use a primer paint colour different from the current or finish paint. For example, if your existing colour is white, ask them to use a light-gray primer.
Get a detailed on-site estimate to avoid unpleasant surprises. You don’t need to go through three estimates for the same job. Just get two estimates if they’re in the same ballpark. But ensure they’re detailed so you know what you’re paying for.
Don’t scrimp on paint. Use high-quality paint, even if you can only afford a single coat. But don’t buy the top-of-the-line, either. Your best bet? Select a colour that’s one step down from the top-of-the-line premium paint.
Remember that painters do better on paint prices than you will. Frequently referred to as a “contractor price,” your painter can, for example, buy paint at $62 a gallon and resell it to you for $75. Even with the markup, that’s still a better deal than buying it for retail at $85. Make sure to ask your painter how their paint pricing works.
When evaluating exterior painters, ask for addresses of homes they painted about five years ago. Then look at them. A good paint job should last about seven years. At five years, you’ll see just the beginning of paint wear around the eaves and gutters.
Remember, no matter how much you haggle with potential contractors to lower their bids, they still need to make a living. You can push too hard. If you pressure painters into lower prices, this only means they have to find cheaper labour to do the job. And affordable labour means a shoddy job. Either way, you generally get what you pay for.
Selecting Plumbers
Here’s the “inside scoop” on plumbers: you won’t pay much for the “parts” they use; they make their money on labour and “mobilization charges.” Frequently, plumbers charge a minimum of one hour, regardless of the actual time spent on the work.
So, if you’re paying a plumber a minimum fee to show up anyway, why not ask him to do other work involving plumbing, such as fixing disposals, pool or lawn sprinkler work, leaky faucets, or washers that need replacing? Use up the minimum he will charge you for fix-up projects.
Plumbing problems are challenging to estimate. To help you in the process, here are several tips to consider:
Explain your job or problem over the phone, then ask how they will address it, what the cost will be, and when the work will start and be completed. And here’s an important tip: if you live in an affluent neighbourhood, do not give your phone number or address until after you’ve been quoted a price. Some plumbers pay 50% more when they learn you live in an affluent neighbourhood.
If a highly recommended plumber has no idea about the job’s cost, negotiate a flat rate for them to inspect the problem and provide a quality bid.
When dealing with tradespeople who charge by the hour, ask if travel time is also included on the clock.
Check for shoddy work or ways your plumber will try to boost their profit margins at your expense. For example, some will use a ½-inch pipe instead of a ¾-inch pipe, which means your toilet may not flush correctly in bathrooms with a shower. Alternatively, if a plumber uses L or K-grade copper piping, you can expect a life expectancy of five to 10 years, compared to M-grade piping, which typically lasts 15 to 20 years. And some plumbers use plastic pipe, which is inexpensive but noisier and less durable than metal. Ask your plumber what he’s using before he starts his work.
If you suspect your plumber is overcharging you for materials, visit Home Depot or a plumbing supply house and obtain a price quote for the same materials. You can still check the price tags even if they don’t sell directly to consumers.
Selecting Electricians
Electricians register the fewest complaints from consumers, likely because they have the most stringent national standards to adhere to. Before hiring an electrician, make sure they are licensed.
You should also check (along with all tradesmen you consider) that: 1) he’s licensed and insured; 2) he has no complaints with the Better Business Bureau in your area; 3) he’s driving a truck or van with a painted-on sign and logo; and 4) he’s willing to write you an estimate on his own printed invoice, which should reveal a street address rather than a post office box.
However, electricians can easily take advantage of you on parts. A cheap electrical switch costs your electrician 99 cents compared to $4 for a longer-lasting one. When obtaining parts from your electrician, ensure he uses “specification grade or better” products – a standard set by the CSA.
Selecting Roofers
Better Business Bureaus have their files stuffed with stories of roofers who ripped off consumers and skipped town.
If you’ve got a leaky roof, chances are it’s a flashing problem. This is the material, typically made of copper, galvanized steel, or aluminum, that connects your roof to the chimney with a black, sticky substance called asphalt cement. If you need flashing fixed, plan to spend about $30 to $50 per hour to set it correctly.
Be wary of the roofer who gazes at your roof and announces, “Your roof is 15 years old, and it’s gonna leak soon if you don’t replace those shingles.” The only way to determine whether you need a new roof is to get up there and inspect it. Worn-out shingles, which have lost their oil and thus water repellency, look brittle, curl up at the edges, and often crumble into powder when broken.
A new asphalt shingle roof is typically costed out per “square” (a roofer’s square is 100 square feet), depending on the quality of the shingles and the slope of your roof. A shingle roof should last 15 to 20 years.
If you plan to move out of your home soon, you might want to consider a “second coat” of shingles. This will avoid the need to strip off the first layer, saving you approximately 20% in labour.
Selecting HVAC Specialists
The most common rip-offs with HVAC (an acronym for “Heating, Ventilation, Air Conditioning, and Cooling”) include substituting used parts for new ones and replacing components that don’t need replacement.
The solution? Always ask to see the old or broken parts before they’re replaced, and examine the packaging and documentation of any new features used.
And here’s another tip: try to have any HVAC repairs performed off-season. Air conditioning and heating work is up to 10% less expensive during the off-season.
Also, avoid extended payment plans. There’s no free lunch, and it’s assumed you’re paying for the costs of money somewhere in the job. If you purchase a service contract, ensure that your contractor details everything that will be performed under the agreement and that they have the most up-to-date equipment to complete the job.
And if you need to replace an air conditioner or furnace, eliminate the bidder who estimates the job off the cuff without measuring your windows, asking about the type of insulation you have, and considering the direction your home faces.
Should You Get A Written Contract?
Written agreements help keep a tradesperson to their word as long as they’re detailed enough. However, a piece of paper doesn’t protect you from being taken advantage of.
If you get “duped” by a licensed contractor, you can complain directly to your local Better Business Bureau or other local agencies and request a hearing or arbitration. Suppose you’re dealing with an unlicensed tradesperson. In that case, your regional Better Business Bureau may help arbitrate the situation, but if the contract was large enough, you might be forced into the courts for satisfaction.
Whether or not you receive a contract, ensure that after work, you receive a written statement stating that all work performed has been paid in full. Or, better yet, when you submit your final payment, write that statement yourself and ask the tradesman to sign it.
Get Expert Advice and “Hand-Holding” Guidance In Getting the Most Value Out Of Your Home
There’s no question about it; getting top dollar out of your home can be tricky. One false move can cost you thousands of dollars. We have developed a proprietary program for homeowners seeking to sell their properties. We call it our :
Maximum Home Value Audit
And it’s completely different from what any other Realtor can provide for you. If you’re considering selling in the next six months, here’s what I’ll provide for you without any obligation whatsoever:
I’ll conduct a careful and thorough valuation of your home, based on real-world facts, in an EASY-to-understand format. You won’t get inflated values to pressure you into signing anything.
And you won’t get anything like, “I have a buyer right now who’s interested in your specific home, and if you list with me, I’ll bring him by right now.” You’ll get no pressure, no arm-twisting, and only a real-world, honest, fact-filled analysis.
I will tour your home to identify items that could negatively affect your selling price. As mentioned earlier, some of our findings could result in as much as a $10 increase in sales price for every $1 invested. By the end of my tour, you’ll have a checklist of strategies designed to “position” your home to sell for the most money possible.
I’ll share our [128 Step Top Dollar Marketing Plan]. This plan will provide you with insider secrets on how to effectively promote your home, handle buyers, interact with other Realtors, lawyers, and mortgage professionals, and prepare for a move.
PLUS, we guarantee everything we do. If any other Realtor doesn’t ensure their services, ask them why. You’re staking the successful sale of your home on their abilities; why shouldn’t they stake their fee the same way? We place our priorities in the same place as yours. We’re in this together!
When selling your home, the LAST thing you need is added pressure. That’s why we’ll answer all of your questions. And give you one less thing to worry about during these hectic times.
I am not telling you these things to impress you, but to impress UPON YOU, the difference between Realtors who “sell” real estate and those who COMMIT to whatever it takes to serve a client beyond their expectations!
We are full-time Realtors. We make it a priority to educate & guide YOU on every aspect of your transaction.
We have a list of references, past clients, and professional associations whom you can contact at any time to discuss the quality of service we have provided to others like you.
We have developed an EXCLUSIVE [128 Step] marketing plan unequalled by anyone in the business. We do this because our dedication to selling your home is also unsurpassed. There’s no other way we can live up to that expectation without extraordinary marketing capabilities.
We have specifically designed marketing tracking systems for every home we sell. We also have specific techniques to ensure you receive all activity and progress updates at your home on a weekly basis. You will NEVER feel out of touch with us!
We guarantee everything we do! If you’re not happy with us, fire us! This places the burden of risk on us, not you.
We have references for reliable sources, many of which realtors are unaware of, such as insurance companies, inspectors, lawyers, mortgage providers, and others directly related to your transaction. If you choose to use any of them, you won’t be dealing with arbitrary people. These are professionals with whom we have worked personally in other transactions.
We schedule showings around your schedule and respect your personal and family time. This requires special planning and forethought that most Realtors do not consider.
We speak with people directly involved in real estate buying or selling every day. This enables us to establish a communication link between properties and individuals.
Most importantly, we generate over 80% of our clients through referrals alone. We focus 110% of our efforts on providing such outstanding service; our clients will refer our services to family, friends, and acquaintances.
On the surface, it may seem there are many Realtors from which to choose. However, just because there are many Realtors out there doesn’t mean they can all do the same job for you.
All Realtors Are NOT The Same!
I know there’s a natural tendency to procrastinate and put off important decisions. But the more you procrastinate, the more pressure ultimately rests with you.
So call now at 519-435-1600, or, find out what your home is worth in London Ontario in this market. There’s no obligation whatsoever. And it could save you thousands on your home sale.
Congratulations
You have read this far! Very few people take the time to plan; instead, they go willy-nilly, allowing their emotions to make decisions. You would be surprised at how few people take the time to do some minor fixes on their homes or do them correctly.
My experience tells me that those who prepare before selling a home do their ‘homework’ are much more likely to sell their home quicker and for more money!
Why leave money on the table or go to all the trouble, money and energy to update