There are a number of misunderstandings related to what is a good return on investment (ROI) with regard to repairs and upgrades prior to selling your Toronto home. In this blog, we touch on what has served our sellers in terms of upkeep and improvements needed prior to selling their homes. In fact, we are involved from day one, even if this is just after taking possession of the home or condo.
We are heavily invested in our belief that we act as real estate advisors from day one. After all, your home is likely one of, if not the single greatest financial investment you have.
Latent Vs. Patent Defects
It’s worth noting that there are latent and patent defects. Latent defects are problems that are not easily inspected or seen, can be potentially dangerous either structurally or to your health, and can often be very expensive to repair or remediate. Patent defects are readily seen with an inspection. As a seller, it is mandatory to disclose any known defects that are not seen or may cause health hazards. For example: “After heavy rainfall each spring, our basement floods in the southwest corner.” This is an example that may not been seen in the driest days of the summer. It must be disclosed.
In some cases, the cost of repair is too great, and disclosure can solve the problem of property saleability. This is obviously decided on a case-by-case basis. For this blog, we will assume that there are no structural, mould, leaking roofs, etc., and that the house is in a livable state.
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The Value of First Impressions
A major component of a successful listing period and sale of a home or condo is the first impression of the property and space. Keeping objections at a minimum is a must! If there is a visible issue, it begs the question of what else is wrong with this house. What am I missing? What is the seller hiding from me?
Ultimately, if the buyer still has an interest in the home, they are making a mental list of all the costs and hassles they will have to deal with on day one of ownership should they buy – seller translation: these buyers will be offering disproportionally less money than the cost to fix the issue. Fix it and maximize your sale price. Now that we have covered those points let’s dive into the repairs you must make prior to selling.
Top 5 Must-Make Repairs
1) Repair all electrical light fixtures and appliances
First off, the reason this is important is that the house needs to show well. If lights are burnt out, flickering or inoperable, this affects the first experience that the buyer has when they walk through the front door. An objection has been raised. Good luck getting over that roadblock. You would be surprised how often a buyer opens a fridge, and it happens, so make sure it works, including the water filtration and ice maker.
2) Scuffs, cracks, scrapes, and dents in the drywall or plaster and lathe
Everyday living (and moving items) cause scrapes and other regular wear and tear issues. Cleaning these up with some putty and then doing some paint touch-ups (in some cases, a completely new coat of paint) can help. A great painter’s tip: a little caulking can seal some splitting where wood trim meets drywall. All of these improvements are minimum cost and provide a clear view; they keep the buyer’s eyes open to the entirety of the space, the feel, and the lifestyle. Not doing this work will draw the buyer’s eyes to imperfections many cannot overcome.
3) Fix cracked or leaky windows
Fixing a pane of glass goes a long way to the experience. Not only does it mean that the space is weather-tight and less drafty, but it is also a better visual experience and limits the question of deferred maintenance of the seller. A foggy window often means that the weather stripping is no longer sealing the window; some people can come in and remove the fog and re-seal the window. Both of these options are often far more cost-effective than replacing a window. There is the cost of the window, the labour cost to remove and install a new window and complete the trip, and any sizing discrepancies – let alone the fact that one window may not match the other windows.
4) Carpet stains
Carpet stains are another option that is relatively cheap and easy to remedy. Replacing the carpet is an ordeal that takes a long time, and you will not see a positive ROI on this. A good carpet cleaner can do wonders with stairs on carpets and in rooms, and it’s also worth considering the area rugs. This is mandatory if you have pets. Pet hair, dander and kitty litter linger in the air. Fabrics hold smells. Cleaning them can freshen the air in very little time.
5) Bathroom leaks and seals
Bathrooms are a familiar spot to see some dirt and, at times, mould build-up on tile grout and the silicon calling around the tub or faucets. It’s also a spot where a slow drip can be overlooked. Have the tiles and sealants deep cleaned; if the tiles and caulking don’t come out clean, consider having them recaulked, re-glazed or re-grouted – in that order, as the cost is more effective with re-caulking and can often be done by the homeowner.
Looking to maximize ROI on the sale of your home? Explore these other blogs for more tips.
- Real Estate Pricing Psychology
- Top 12 Home Staging Tips
- The 5 Best Condo Renovations To Improve Home Worth
What If My Home Has Other Issues?
By no means is this an exhaustive list, and each home and condo is different from the next, with different needs and considerations. That being said, we have found that these are the top few items that can be completed at a relatively nominal cost of the house’s total value.
Obviously, if there is a broken stem on the deck or missing siding, those should be fixed or replaced. But regarding more everyday issues the above is a great starting point with an excellent return on investment for sellers. The game of the game is to minimize objections and have the buyer experience a seamless transition from the online realm to the home of their dreams.
Looking to sell your Toronto home? I can help. Reach me by email at ryan@ryanroberts.ca or call 416-925-9191.
