Renovations That Can Decrease Your Homes Value
We all know that by updating and adding a new kitchen or re-doing a bathroom can certainly add value to a home but not all renovations are a good idea and some can actually decrease the value of your home.
Opting to get rid of a bedroom, even if it creates a larger bedroom or another living space, can seriously affect your homes value.
The reason being is that, the more bedrooms a home has, the higher the price it can usually fetch.
A listing price is set by looking at what comparable homes are selling for in the same neighbourhood and the number of bedrooms is an important feature used to compare two properties. When you remove bedroom space, you’ve completely changed the comparable value of your home in the neighbourhood.
Fewer bedrooms also means fewer potential buyers interested in your home. There are home buyers who simply will not look at two-bedroom or three-bedroom homes. In Toronto, the average single-family home has a minimum of three bedrooms and two baths with a total of about 1,500 square feet - this is what most families are looking for.
There’s a good chance that not even a sprawling master bedroom will get potential buyers to change their minds and they most often move onto the next best available home on the market.
There are certainly some buyers who will be wowed by that big luxury master bedroom, however that trend seems to be waning.
What I’m seeing today is that homeowners want to re-configure a big bedroom and make it into two rooms instead of the other way around.
If you’re fortunate enough to have a master bedroom on the first floor, meaning you don’t have to climb stairs, you’ll most likely want to keep it that way. I’m constantly meeting elderly home owners who are selling their two storey homes and purchasing bungalows and condos. As are baby boomers, anticipating a day when they can’t get up and down stairs as easily, who pay a premium for this feature. Include a main floor bathroom and you’ve just ticked off additional features that most potential buyers will want and will pay premium to get it.
Even so, the impact of removing a bedroom will differ depending on how many bedrooms you have in the first place. If you have a four or five bedroom home, you might have a bedroom to spare without too much of a financial impact. If you have several bedrooms but they’re small (for example: less than 8 feet by 10 feet), you also may justify combining two. Something to note is that a lot of buyers usually want separate rooms for their children, and a guest room.
If resale value isn’t a concern, then none of this matters. It really comes down to the homeowners long range plans. Home owners who plan on staying in the house until they die….and certainly there are a growing number of owners who intend on staying put which means they may not care at all about what the next buyer will want.
If you’re at all concerned about your home’s value, talk about the potential financial impact of a renovation with your contractor or your real estate agent before you make any decisions.
For more information about your home’s value please feel free to reach out anytime!
Your Friend in Real Estate,
Suzana ( Sue ) Davies