The spring market in Canada is starting to heat up with record low inventory. Buyers have started to come back, as for the first time in the last few months Bank of Canada has not increased interest rates.

In fact, Royal Lepage has adjusted their national aggregate home price forecast to increase 4.5% year-over-year in Q4 2023. This is an opportune time for home sellers waiting in the sidelines, to finally start getting their home ready for sale and look into renovations.

When selling the place you’ve called home for the past five, 10 or 30 years there is always one question that comes to mind: How do I get the most money back on my home?

How can homeowners increase the ROI, or return on their investment? There are a ton of tricks and tips to increase the ROI when selling a home, but the number one piece of advice is to look into hiring a Real Estate Agent.

The right Real Estate professional can assist in setting an appropriate asking price which is influenced by the season, annual trends, neighbourhood and amenities offered in the area. They can also help with other things like organizing showings, and offering invaluable advice about possible projects that can be completed to upgrade your home and also increase sale price.

Other ways to ensure you are increasing your investment in your home upon selling is by putting some money back into the house before the sale sign is even hung.

Who is buying?

Speaking with your hired professional and by taking note of the demographics in the area can help you determine your target audience. Who will be looking at purchasing your home? A young family? An expanding family? A couple looking to retire? Investors? Perhaps it is some people who are looking to flip the property?

Learning your target demographic can ultimately save you from investing money into big projects that will do nothing to return on your investment. “There are a lot of buyers who just want to buy a home that is turn-key. Updating rooms like the kitchen, will have the greatest impact for them. However, you need to know who your buyer is so the upgrades will align with their wants and needs.” says Terry Osti, award-winning, REALTOR® at StilHavn.

Web appeal is the new curb appeal

Forbes reports that it is just as important, or more so, to have a strong web presence when selling your home as it will bring interested buyers to the door. Senior director of PR at Realtor.com, Julie Renyolds told Forbes that ads featuring walk-through tours are clicked on 150% more than ads without them.

Curb appeal still a good investment

HGTV says that curb appeal is still just as important as ever. After all, you can only make a first impression once.

Ensuring cracks in sidewalks and driveways are patched, windows and doors are caulked and door knobs, locks and hardware are upgraded are low cost ways to boost the return on investment upon selling.

Taking that extra initiative and planting flowers and perennials in the garden can also have a lasting impression and increase the value of the home. Interior designer Brittany Farinas of House of One told Forbes.com that adding some greenery can give the outdoors a whole new look.

New siding, although a little more costly, is reported to rank high on the cost vs. value report according to HGTV. According to Forbes.com, homeowners can expect to pay between $1,000 to $16,000, depending on the size of the home and the type of siding material used, but it will not go unnoticed.

Sound structure is key

Interested buyers aren’t going to be as thrilled about an upgraded kitchen if the basement is flooding due to poor plumbing or cracks in the foundation.

HGTV says that investing that facelift money into ensuring the roof is in good repair, the foundation is sturdy, the furnace is functioning properly and all electric and plumbing is up to code will ensure the asking price won’t plummet in order to compensate for the necessary repairs.

Replacing windows can cost around $15,000 for a 2,000-sq-ft home with new vinyl windows, but RE/MAX predicts a return on investment of 75%.

Focus cash on bathrooms & kitchen

The kitchen and bathrooms are where a lot of time is spent in the home and architect Steve Straughan based out of Los Angeles’ KAA Design Group says they are the areas of the home that interested buyers can tell if money has been well spent.

According to RE/MAX, kitchen renovations such as countertops are one of the top three changes that lead to a high return on investment. Countertops can be expensive, but $3,000 stones such as granite or quartz can make a huge difference. To further elevate your kitchen, spend around $5-10,000 for stainless steel kitchen appliances. Kitchen renovations typically have a return on investment of 75-100%, usually the highest ROI.

Bathrooms can often always use a facelift — and, for certain, a deep clean. Every bathroom is different, but it is one of the main focuses that buyers look for in a home. Renovations can vary, but having a vanity with marble countertops or a frameless glass shower are elements that can draw buyers. A tip recommended by RE/MAX is to analyze your bathroom and figure out the strengths and weaknesses of it. A typical bathroom renovation is between $5-$15,000 and can have a return of 62%.

Updates and remodels should focus on creating open and inviting spaces and one of HGTV’s tips is to skip that soaker tub and put in a grandiose walk-in shower — or steam shower. After all, who really has the time anymore to take lengthy soaks often enough to justify the space the tub takes up.

Creating additional space

Does the home have an attic with dimensions that would allow the creation of an additional bedroom or office space? Can you extend the deck or create an outdoor living area or sunroom? Can the basement be finished and transformed into a cozy living space? Adding more functional spaces in your home can make it look larger and eliminate any unused spaces. Forbes predicts that the average cost to finish your basement is $22,850 in 2023.

HGTV says keep other homes for sale in the area and your target audience in mind because you don’t want to renovate your home to the extent that you price yourself out of your market.

Go Green

Concentrating on making the home energy efficient with better insulation, window and door replacements can not only increase your ROI when you sell the home, but you will also notice instant savings on your energy bills. By making such upgrades, AIC says the ROI is typically between 50-75%.

Plus, as of December 1, 2020, Canada has offered a number of grants for homeowners to make energy-saving upgrades.

At the end of the day, it isn’t always the fun and sexy renovations that add the most value to the home. Sometimes it’s the dirty work that goes the extra mile when selling. But, to make sure you are getting the best return on your investment, be sure to speak with a professional Real Estate Agent who can help answer any questions you may have along the way.

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Why is that?

Simply put, selling a home takes a lot of time and effort. Although FSBO is not an impossible path by any means, there are a number of key points to keep in mind before choosing to oversee the sale of your home.

Not only are you responsible for all aspects of putting your home on the market, including, but not limited to, setting the listing price, advertising the property and setting up as well as being in attendance for showings for potential buyers, you’ll also have to negotiate in terms of the sale, including price, closing date and more. In other words, instead of having multiple specialists to help you with the sale of your home, you will be the all-rounded expert in all fields.

For many home sellers, these tasks are worth their time and effort in lieu of paying out commission to a REALTOR®.

But to backtrack just for a moment, let’s look at setting the listing price a little more closely:

One of the biggest risks associated with selling your home on your own is not hitting the “sweet spot” of home prices. Market changes can cause housing prices to fluctuate. If your house is overpriced, you might find it sitting on the market for longer than what you might have expected. Additionally, prospective buyers may shy away from a home that has been sitting on the market for an extended period of time because they might think negatively about the house or the neighbourhood.

On the other side of the coin, selling the house for too little benefits no one except the buyer. If trying to avoid paying commission is the primary motivation behind selling your home on your own, but you undervalue the price of the property, the cost-savings benefit of FSBO might not be fully realized.

This is one of many areas that working with a REALTOR® can come in handy. Real Estate professionals have access to data on actual selling prices  – not listing prices – and would be familiar with relevant market demands and changes in your neighbourhood helping to provide analysis of current trends.

Some Risks when you decide to sell on your own:

• Leaving money on the table as FSBO don’t get as much exposure without the help of a REALTOR who is well connected to buyer agents
• Will have to pay for legal, marketing costs yourself
• Risk that home defects have not been documented, running into legal issues down the line
• Time spent trying to list, market and negotiate your own transaction
• Safety concerns when showing your own home
• Wasting time and efforts by staging and showing your home to potentially unqualified buyers
• First time home buyers may be apprehensive to seal a deal without the help of a professional

Statistics show that selling your home with the assistance of a professional REALTOR® will garner you a bigger profit. According to the National Association of REALTOR®’s 2022 Profile of Home Buyers and Sellers, the average FSBO home price was $225,000, while the average home price sold by an agent was $330,000.

That report also showed that only 10% of home sales in the U.S. were FSBO. It also stated that 86% of buyers purchased their home through a real estate agent or broker, a share that has steadily increased from 69% in 2001.

Only 28% of FSBO home sellers decided to market their homes on websites including social networking websites and FSBO websites. However, it is evidently a useful platform to use because 51% of buyers found their home on the Internet. Other FSBO sellers marketed their homes through friends, relatives, or neighbours (28%) or yard signs (20%).

The most difficult tasks for FSBO sellers cited in the report include getting the right price (16%), understanding and performing paperwork (13%), selling within the planned length of time (10%), preparing home for sale (6%) and having enough time to dedicate to all aspects of the sale (1%).

Although you may think there is no one better qualified to show off your house than yourself, a REALTOR® can ensure the presentation of your home goes as smoothly as possible.

Not only can a REALTOR® offer expert tips on staging your home to look its best, they are also able to highlight certain features or aspects of the home that the homeowner may unintentionally overlook during the presentation process. REALTOR®s also know the current trends as to which designs or furniture arrangement can attract buyers. For those pressed for time and find themselves juggling a career and family, working with a REALTOR® can be a wise investment.

The ultimate goal in any home sale process is to get as many eyes on, and as many people passing through, the property as possible. A REALTOR® can not only have your property listed on the Multiple Listing Service (MLS), they can help promote the property via flyers, pamphlets and postcards with eye-catching photos and major selling points to help drum up interest.

These are costs that FSBO sellers would otherwise be responsible for absorbing.

Another benefit of using a REALTOR® is the exposure they can provide to other agents who might have the perfect buyer for the property already in mind. An agent tour of the home early in the sales process allows other agents to ask questions and gather information about the property that cannot be discovered through pictures and MLS information alone.

Most importantly, a REALTOR® is there to represent your best interests as a seller.

Your REALTOR® can help you objectively evaluate each offer without compromising your marketing position. With a REALTOR® in your corner, they serve as a bit of a buffer between you and the seller. REALTOR®s can solicit honest and open feedback from prospective buyers, who may not be as candid when dealing with a homeowner on a one-on-one basis.

And when you’re lucky enough to reach the offer stage, they will not only help you devise a win-win agreement that will appease both parties, they can also help walk you through the process of appraisals, inspections and financing – tasks that you may not be as familiar with as a FSBO.

Keep in mind that several different variables can arise between the sales agreement and the final closing of the property, as both buyers and sellers have various legal responsibilities that need to be fulfilled.

REALTOR®s carry Errors & Omissions insurance, which serves to protect parties from potentially financially-crippling liability should they be brought to court for negligence, errors, failure to disclose, or other possible reasons.

Your home is among the most valuable assets you’ll ever own. When it comes to selling your home, trust a professional REALTOR® to ensure you get the job done right without undervaluing your home.

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An economic downturn could stress you out if you’re selling your home. A contracting and uncertain economy doesn’t usually yield top dollar for home sales.

At RankMyAgent, we aim to make the home selling process more manageable. So this article explains what a recession entails and tips to sell your home for the best price during a recessionary environment.

What is a Recession?

The traditional definition of a recession refers to two consecutive quarters (three-month periods — so two consecutive quarters equal six consecutive months) of declining Gross Domestic Product (GDP). But this definition comes with numerous asterisks.

Even if Canada faces two declining quarters, we may not be in a recession. We continue to face record-low unemployment rates, and in a recession, unemployment peaks.

A recession depends on numerous factors like employment, consumer spending, and GDP. An “official” recession usually occurs once a group of leading economists looks at these factors and determines we’re in a recession.

What Can We Expect During a Recession?

A recession’s outcomes and contributing factors are a “Catch-22” — i.e., the presence of the factors indicates a recession, but the same circumstances also result from an economic downturn.

We usually see the following during a decline:

• Layoffs: Businesses fear the unknown and want to reduce spending when the economy begins to tumble. You can expect layoffs in business departments that aren’t critical or where companies previously overhired.
• Less consumer spending: People are also fearful when we hit a recession. We’re scared of losing our jobs or taking a loss in the stock market. As a result, we might spend less and save more of our income for a rainy day.
• Depressed stock market: Investors may sell their stocks and choose safer investments. So, you can expect stock prices to decline. Some corporations also don’t fare well during a recession, and their stock price reflects that.
• Higher interest rates: This isn’t true for all recessions. But in our case, a recession may be caused due to the Bank of Canada increasing borrowing rates to tamp down inflation. This would make buying a home and making mortgage payments more expensive.

These factors can turn the residential home market in favour of the buyer. We’re more cautious about making significant financial decisions in a recession. We’re also unsure whether we can hold our job or afford increasing interest rates.

As a result, there are fewer buyers on the market. We might wait until economic conditions are more positive and confident before applying for a mortgage and making the largest purchase of our life.

But the number of sellers remains the same or even increases during this time. Some Canadians may need to sell their second home to cover costs or downsize to afford their mortgage in a poor economic environment.

Tips for Selling Your Home During a Recession in Canada

1. Rethink if You Need to Sell

Housing prices tend to peak before an economic decline and slide once a recession becomes a reality.

Selling in the middle of the downturn might not bring you the best price. Downturns tend to be buyer markets, where homebuyers have more leverage. You won’t likely have the same bidding wars or unconditional offers we saw a year ago.

Sometimes, you might not need to sell an investment property or move into a larger home right now. It’s best to consider whether entering the real estate market is required.

2. Sell Sooner Rather than Later

Past recessions show a history of dipping home prices. If you plan to sell in the near future, it’s better to do it as soon as possible. You’re only going to face tougher selling conditions.

Otherwise, you should wait until the economy is more positive before you sell. Home prices tend to fare better when there’s financial prosperity among Canadians.

3. Don’t Overprice Your Home

You might be used to seeing bidding wars and homes selling for hundreds of thousands of dollars over asking. But the market right now might not have the same prospects. You should temper your expectations to something reasonable.

Working with a real estate agent can help you set a reasonable selling price. Additionally, a realtor can guide you towards getting the best dollar for your property. They might suggest minor renovations or staging to bedazzle the prospects.

4. Give Your Home Some Minor Renovation

Minor renovations, deep cleanings, and restoring curb appeal can help move your home on the market. These changes make your home shine in photos and showings.

You don’t need to overhaul your entire kitchen. It may not be worth it in the current environment since labour is in short supply — contractors aren’t as open to negotiations or discounts. At the same time, home prices are going down.

Contributing your own labour by refreshing walls with a coat of paint or deep cleaning your carpets may be what you need to increase your chances of selling. A clean and refreshed home can help potential homebuyers envision themselves living there.

5. Consider Renting your Property Out Instead

Cities like Toronto and Vancouver are seeing record-high rent prices because surging interest rates have left prospective buyers unable to purchase a home — therefore, many Canadians continue to rent.

Some sellers who aren’t getting the offers they hoped for have turned to the rental market because the sky-high rent prices make being a landlord much more appealing.

If you aren’t in a rush to sell, renting out your property until better economic conditions might be an option to get the best return on investment from your property.

Recessions don’t have to be scary. Yes, there’s a fear of layoffs and depressed stock prices, but things rebound eventually. If you’re planning to sell your home during a recession, it’s vital to temper expectations. You can’t expect your home to sell for the same amount that homes sold for during a growing economy.

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Whatever the case, numerous tax and legal considerations exist when you leave Canada — especially in the home selling process.

In this article, we talk about the many aspects of selling your home as you leave Canada and what you should consider.

Non-Resident Status

When you leave Canada to live in another country, you sever residential ties in Canada. This could mean selling your home, revoking your driver’s licence, or leaving clubs and organizations. As a result, you usually become a non-resident of Canada.

You become a non-resident for income tax purposes at the latest of:

• The date you leave
• The date your spouse or common-law partners and dependents leave Canada
• The date you become a resident of the country you settle in.

As a result, you aren’t obliged to pay all the same Canadian taxes as before. When you leave Canada, it’s best to speak with a tax professional to understand your obligations.

Departure Tax

One implication of becoming a non-resident is departure taxes — various taxes you must pay due to your departure.

When you leave Canada, the Canada Revenue Agency (CRA) deems you to dispose of certain types of assets at fair market value and reacquire them at the same price. This creates a capital gains tax that you need to pay. Accountants generally refer to this as a deemed disposition.

This deemed disposition on departure applies to properties like jewellery, paintings, and company shares (excluding TFSA or RRSP shares). So, your home is not deemed to be sold when you leave the country.

How to Notify CRA that You’re Leaving Canada for Good and File Your Canada Departure Tax Return

When you leave Canada, you need to file a departure tax return to notify CRA that you’re leaving. You generally need to file this tax return by April 30th of the year following your departure. The purpose of this tax return is to

• Record the date you leave Canada and change your residency
• Report the properties you own in Canada
• Prepare various tax forms
• Report and pay any departure taxes.

Leaving Canada and Your Principal Property

Capital gains are only taxable if you sell your home — suggesting it’s your principal property — when you’re no longer a resident. While, if you’re a resident, capital gains tax is generally exempt because your home is your principal residence.

When you depart from Canada, you usually have two options to deal with your principal property:

• Sell your property while you’re still a resident of Canada and have capital gains exempted through the principal residence exemption.
• Wait until you’re a non-resident to sell. In this case, the principal residence exemption is still generally available for the years in which you owned the property as a Canadian resident and fulfilled the other criteria for the principal residence exemption.

Selling Your Home as a Non-Resident

As a non-resident selling your home, you are liable to capital gains taxes because non-residents cannot access a principal residence exemption. In this process, you must notify CRA and complete Form T2062.

You’re generally liable to capital gains taxes in the years you’re a non-resident. For example, suppose you owned a home from 2003 to 2022.

• The home was your principal residence between 2003 and 2018.
• In 2018, you became a non-resident and moved out of the country.
• In 2022 you sold your Canadian home as a non-resident.

In this case, you’re likely liable to capital gains tax between 2018 and 2022 because the property was no longer your principal residence in these years.

Once the home is sold, you need to inform CRA of the sale within ten days after the sale closes. You make this notification through Form T2062. If you don’t, there’s usually a penalty of up to $2,500. The form requires you to estimate your capital gain or loss on the sale.

The property buyer may also assist in the tax collection process by withholding taxes from the due proceeds. This amount could be 25% of the purchase price being held up for months. So it’s best to be prepared for such a situation from a cash flow perspective.

When you sell your home as a non-resident, speak with a tax professional to understand your tax obligations. It will prevent surprises from hitting you in the face when you least expect them — like a 25% withholding tax on the sale of your Canadian property.

Repay Your Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) lets Canadians withdraw from their registered retirement savings plan (RRSP) to buy or build their home.

Currently, the withdrawal is limited to $35,000, and you must repay the amount within 15 years. If you don’t repay the amount, it’s included into your RRSP income on your tax return, which could have significant income tax consequences.

If you choose to leave Canada, you need to repay your HBP or face an income inclusion for the amount. The balance of your HBP is payable on the earlier of:

• Before the date you file income tax for the year you become a non-resident;
• Sixty days after leaving Canada.

So if you’re planning to emigrate from Canada, it’s essential to ensure you have the funds ready to return whatever you borrowed from your RRSP to purchase your home. Otherwise, you’ll be on the hook for a lot of taxes!

Leaving Canada has many tax implications. Selling your home after you’ve left the country complicates this situation. If you’re leaving Canada or selling your home as a non-resident, it’s vital to speak with a tax professional and experience realtor to understand the implications of your decision.

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Downsizing allows homeowners to turn some of their home equity into cash by selling their current home and moving to a more affordable home or area. This move further helps reduce monthly bills such as heat and hydro, reduce the amount of cleaning and home maintenance, and possibly allows you to move to an area that’s closer to loved ones or with more green space.

If you’re considering downsizing your home, this article provides three tips on how to do so. The article goes over:

• What to consider to determine if downsizing is right for you and what the alternatives are;
• How to create a plan to declutter your belongings and prepare for moving to a smaller space; and,
• What you should consider when purchasing your next home.

Consider if Downsizing is Truly the Right Decision

Downsizing sounds excellent in theory. But there are numerous drawbacks that downsizing advocates don’t mention. It can be great for some but not for others.

A lot of people downsize for the financial incentive. However, one survey found almost 30% of downsizers said the cost of downsizing was more than expected. Selling your current home and buying a new one is an expensive process. There are numerous costs associated with it, including realtor commissions, legal fees, and home staging costs. You may also consider making a few renovations to maximize the amount you can sell your home for. This can range from a new paint job to a kitchen remodel.

There are also emotional costs to downsizing. Many older people have lived in their current homes for decades. They’ve grown accustomed to routines, the neighbourhood, the size of their home, and much more. Moving to a new space, community, or even city can be a massive shake up that you didn’t prepare for. Suddenly, you have to form new friendships with the neighbours or find a new coffee shop for your weekly brunch. The reduced space also means you’ll need to throw out a lot of your old belongings. And you won’t have as much space to entertain friends and family.

If you need additional funds for retirement but want to keep your home, an alternative is a reverse mortgage. A reverse mortgage lets you access your home’s equity without the need to move to a new home. This removes the potential costs and emotional risks from the equation.

Create a Plan to Declutter Your Belongings

The decluttering process can be challenging. Downsizing leaves you with less space than your current home, so it’s mandatory to relieve yourself of some possessions.

You can start the downsizing process before committing by decluttering your belongings. This means throwing out, giving away, and selling items that you no longer use. Throwing a yard or garage sale is a great way to go about this and bring in a bit of cash. This process can help you account for all the items in your home and reveal whether you have any deep attachments to specific things.

Once you decide you want to downsize and start looking at homes, you’ll want to develop a decluttering plan so that you’re not overburdened with deciding what to throw out later on. To do this, start with understanding what restrictions you’ll have. For example, how much square footage will your living space be reduced by? Next, list items that you must keep. This likely includes heirlooms, family photos, and the things you use daily. Give away, sell, donate, or store the items that aren’t on your “must keep” list.

Even if some items were expensive, there’s no point in keeping them around if you don’t use them. Hopefully, that item retained its value, and you can recoup some of its costs by selling it online.

Think of What Your New Home Needs for the Long-Term

Due to COVID-19, the condo apartment market in populous cities has declined in price and demand. This may be great news for the 32% of boomers looking to buy a a condo within the next five years. Some of these boomers may move in. But a condo apartment may not be the ideal living situation for everyone’s retirement lifestyle.

When you downsize, remember that this is where you may end up living out your golden years. You want a home with features and a neighbourhood that accommodates you now and 20 years down the road. For example, a walk-in tub or shower over a bath will be better if your mobility gets weaker with age. Living in a safe community with parks and nearby hospitals is also essential. Further, high-rise condominiums may not be the best choice. If elevators are not functioning, it may mean you need to take a flight or two of stairs, which become more difficult as you age.

Speaking to a real estate agent with experience in helping home sellers downsize is a significant help. These agents have the expertise to understand what to look out for to accommodate your current and future needs. They can also provide advice on the declutter and moving process.

Downsizing is a big move for anyone. It involves a lot of consideration in whether it’s the right choice, how to declutter your belongings, and what you’ll need for the long-term. But it also has many benefits such as extra savings and reduced maintenance for your home and lifestyle.

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Renovating the Basics

Renovating your home doesn’t always mean taking a sledgehammer, destroying whole rooms, and rebuilding said rooms from the ground up. Refurbishing the less sexy parts of your house can commonly deliver the best return on investment. These include

• Painting walls
• Removing carpeting
• Adding new roofing and windows

Painting

Painting a room is regularly an under-appreciated home improvement. But a simple, fresh coat of paint can make your whole property stand out and look brand new. It’s perfectly fine to do this yourself, but a professional painter can ensure the final product is even more excellent. A professional painter can skim walls, repair minor damages, and do the other work before selecting the proper paint for each surface.

You can also consult with an interior designer to help discuss tones and colour palettes and whether a matte or glossy paint would be better for specific rooms.

Removing Carpets

A lot of older homes may still have carpeting everywhere. Decade-old carpets look worn and are plagued with stains. And potential buyers may look at a home’s carpeting and think of the chores they’ll need to do to maintain it. Unlike other floorings, carpet requires heavy vacuuming, chemical cleanings, and more. Although the soft flooring may be ideal for kids who play and could trip, temporary soft floor mats are a great alternative until they get older.

Vinyl flooring is a popular alternative to carpet because it’s durable and affordable. Unlike hardwood, it won’t cost an enormous amount. At the same time, it provides a similar aesthetic to your home. Or even better, maybe once you pull those carpets up, you’ll discover hardwood underneath. In this case, you only need to refinish the floors for an updated look.

New Roofing and Windows

No matter how beautiful a kitchen, if your roof is leaking water into the home or if the windows are letting in winter chills, buyers will still turn away. Ensuring that your roofs and windows are intact can prove that the integrity of your home is stable. If your roof is crumbling, then leaking water can cause water damage or mould. Less than airtight windows can increase the costs of heating and air conditioning. Depending on your property’s specifics, replacing roofs and windows can return 80 percent or more of your investment at resale.

Kitchen and Bathrooms are the Money Makers

The kitchen and bathroom are often the standout parts of your home. They’re what most people notice and what homeowners want to show off. That’s why it’s common for people to spend the most renovating these two areas. And it’s a smart idea to do so. The Appraisal Institute of Canada found that the kitchen and bathroom were two renovations with the highest return on investment. But precisely what renovations should be done to the bathroom and kitchen to increase your home’s value the most?

Kitchen

Kitchens are important gathering places for families and friends. It’s a place to show off marble countertops and induction stoves. There’s an unlimited number of ways to pour money into your kitchen, but generally, a minor remodel can deliver more returns than a big one. A minor remodel could include:

• New flooring
• Replacing appliances
• Refurbishing cabinets

When renovating these areas, it’s vital to choose traditional looks such as wooden cabinets, stainless steel appliances, and natural stone finishes for floors and countertops. Although you may want to get creative with personal tastes and trends, remaining conservative is best for your home’s value. Dark green cabinets may look good in 2020, but if you sell your home ten years from now, it’ll likely look outdated. Ensure that you use high-quality materials and that the quality is similar to the rest of the house.

It’s also important to not overspend on luxury materials when cheaper ones suffice for what your home’s worth. This is an essential piece of advice for renovating any area of your home. For example, if you live in a middle-class neighbourhood, laminate countertops will likely be good enough, while real marble countertops could be too luxurious for your home’s area. This could make your house too expensive or high-end for the area it’s in.

Bathrooms

Bathrooms are similar to kitchens because you can sink plenty of money when renovating your home. There are countless fancy tubs and countertops that you can add. It’s common for a home to renovate their bathroom once it becomes worn and damaged. Counters may start to crack, and mould may begin forming in the shower.

The best return on investment for a bathroom, however, is adding a new one. If you live in a home with three bedrooms and only one bathroom, and there’s space for a second one, a second bathroom could drastically increase the home’s value. More so than any bathroom renovation.

The Face of the House: Curb Appeal

Your home’s curb appeal is its first impression to anyone entering it. So, it’s not surprising that this is a great place to put your money if you want to renovate your home to increase its value. Common curb appeal renovations that provide a good return on investment include:

• Replacing or painting your garage door
• Installing a sturdy steel front door
• Adding a front porch

Any of these renovations can provide the front of your house with a fresh look. A front porch can add dimension in cases where the front of your home looks flat.

Like the interior of your home, you can liven the exterior with a new coat of paint. Although not every house may have a painted exterior, it’s an easy opportunity to increase home value.

Renovating your house is exciting and fun. At the same time, it’s a stressful process. We hope that this article explained what renovations increase home value the most and aid you in your renovation process.

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The residential real estate industry is not different from the rest of the corporate world. Homebuyers and sellers must communicate with agents through new means as opposed to face-to-face interactions. Further, home tours have turned virtual. These may become permanent fixtures even once the Coronavirus is no longer everyone’s first thought.

But it’s not only technology leaving a lasting impact on the real estate sector. Everyone has realized the importance of having living space — especially true as many of us must work and self-isolate at home. Homebuyers and sellers now have a more substantial interest in moving to the suburbs, where a larger home is still within their budget.

COVID-19 will have lasting impacts on the real estate market and the buying and sell process. This post discusses COVID-19’s potentially lasting effects on the operations of the real estate industry. This includes:

1. Buyers and sellers using social media to communicate with agents;
2. The increasing use of virtual home tours and remote home buying; and,
3. A greater demand for larger homes in the suburbs.

Meeting and Communicating with Agents via Social Media

How we find an agent to buy or sell our home has changed with technology. Speaking with friends and getting a referral to an agent is still common. But instead of a call, many opt to message an agent on social media.

A 2018 survey on realtors in the digital age found social media was the best source of generating high-quality leads among agents, even more so than Multiple Listing Service (MLS) websites. Now that it’s harder to meet with an agent face-to-face or through cocktail parties and other social gatherings, social media is even more critical for realtors.

The pandemic is likely pushing more real estate agents onto social media to replace the social gatherings where realtors once met new business leads. As more agents adopt this lead generation tactic, it’s likely to stay in their arsenal for the long term. And social media will become more prominent in how buyers/sellers communicate and meet realtors.

Virtual Home Tours and Remote Buying

We’ve used the internet to browse online home listings for the past two decades. There’s nothing new about it. But the ability to do so during COVID-19 has made it more important, and so, agents are putting more effort into their online listings.

Photography

We already understand that pre-COVID, homes that had high-quality photography sold faster. We can only imagine how much faster photos sell a home now that open houses and showings aren’t as frequent. Before we call an agent to book an in-person showing, we’re likely looking through the photos first to narrow down what properties we want to learn more about.

Videography

A real estate video can help a potential buyer feel like they’re walking through the home. Before COVID, 73% of homeowners said they’re more likely to list with an agent who uses video. Again, this number is likely even greater with COVID-19. As agents adopt more real estate videos into their marketing strategy, it may become a new norm for realtors after the pandemic.

Further, drone footage can provide potential buyers and sellers with an idea of how the surrounding community looks. People don’t only buy a home for the interior but also the neighbourhood.

3D Home Renderings

3D home renderings with technologies like Matterport are becoming more important. 3D digital home tours provide potential buyers with a better online experience that may stay in demand even when they can view an open house again.

Remote home buying

COVID-19 has shut borders, which means foreign home buyers likely can’t fly to Canada to view a property before purchase. Even purchasing a property in another province as a Canadian can be difficult.

As a result, remote home purchases have become more popular. 42% of Ontarians said they were “open” or “somewhat open” to purchasing a home they could only view digitally. Some brokerages combine digital 3D home tours with real-time calls with agents to provide an experience that replicates an in-person showing. Ultimately, COVID has made homebuyers more comfortable with remote home purchases, and this effect likely will last post-COVID-19.

A Push Towards Larger Homes in the Suburbs

Condo apartments [AZ1] in downtown city cores have become scary places for those avoiding COVID-19. Thousands of people living in the same building is not a good way to avoid the pandemic. When you combine this with the small spaces that condo owners must self-isolate in, many look to the suburbs as their next big move[AZ2] .

This desire to move to the suburbs isn’t temporary. Remote work has created a longing for home offices that aren’t possible in a condo. In a survey of Ontarian homebuyers, 28% mentioned that pandemic isolation had increased their desire for a bigger home, more space, and more amenities. 25% wanted more outdoor space, which is usually only possible in the suburbs (unless you can afford a high-end property in the city).

COVID-19 has changed society a lot. One of those changes is how we buy and sell a home, and some of these changes are here to stay. Even after the pandemic ends, we’ll likely see social media and online alternatives to home tours take an even larger role in selling homes and driving leads to agents. The demand for larger, suburban homes will also likely continue as we further embrace remote work.

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Although it’s a tough time, it’s important to remain hopeful. The federal and provincial governments have worked with the private sector and with other organizations to help those in financial distress due to COVID-19. Some of these measures may have an impact on your home purchase or sale.

In this article, we look at what measures and policies have been put in place to help fight or recover from COVID-19. Particularly the ones that affect the home purchase and sale process. This includes the restrictions and bans on open houses, the ability for homeowners to defer mortgage payments, and interest rate cuts by the Bank of Canada.

The Ban on Open Houses

Open houses are an easy way for COVID-19 to spread. A dozen people wandering inside a 3,000 square foot or smaller home is the ideal environment for transmission. That’s why real estate boards in Canada have called for the end of open houses ever since measures were put in place to prevent the spread of COVID-19. As a substitute, agents have gotten creative with technology and held open houses through online live streams or pre-made video tours.

Most realtors now will not conduct an open house for the sake of safety and the law. This is not only due to the strong urges from realtor boards, but provinces like Ontario have prevented gatherings of more than 5 people, which can make the idea of an open house more or less impossible. Instead of urging its realtors to not conduct open houses, some boards like the Alberta Real Estate Association (AREA) have outright banned open houses.

If you’re currently looking to purchase a property, you’ll likely have to make do with virtual home showings. If you’re very serious about a property, it may just be a reason for a realtor to provide an in-person showing.

As a seller, you need to understand that realtors are now more limited than before. Without the opportunity to hold open houses, your agent has lost a tool in their belt, but that doesn’t mean that they won’t continue to do the best that they can.

The Ability to Defer Your Mortgage Payments up to Six Months

When a bank provides a mortgage, the debt doesn’t stay with the bank for long. They commonly pool together these mortgages and sell it to someone else, taking a cut on the way. What they sell is called a mortgage pool. If banks want to keep providing mortgages, there needs to be demand for these mortgage pools. To help provide this liquidity, the Government of Canada committed to the Insured Mortgage Purchase Program (IMPP). In this, they’re prepared to purchase $150 billion of insured mortgage pools. This is to ensure lending continues in this dire time.

As a result of the IMPP, the government has also ensured agreement with the leading six Canadian banks that they would allow for up to six months of mortgage payment deferrals. This will ultimately vary on a case-by-case basis. Banks are also set to provide relief on other credit products such as credit cards.

The ability to defer mortgage payments will provide Canadians with some much-needed financial flexibility. If you’ve lost your jobs or lost other sources of income, it can help to defer payments till later on so that you can use your money on necessities like food.

However, this deferral will not be interest-free in most cases. So, if you do decide to defer your payments, you’ll end up having to pay more money back to the bank.

This deferral also helps those who are renting. Landlords who can defer their mortgage payments may be more lenient in deferring or reducing rent.

Estimates believe that these deferrals will leave homeowners with roughly $663 million in their pockets per month. This is based on monthly Canadian mortgage payments averaging to $1,326.  However, everyone is now rushing to their bank to defer their next mortgage payment—whether they need to or not—and therefore, it may take some time to get through.

This opportunity to defer your mortgage can be useful if you’re selling your property due to a loss of income, since this may mean you need extra capital. Delaying your next mortgage payments can hopefully put some money back in your pocket until the economy returns to normal.

Interest Rate Cuts by the Bank of Canada

The Bank of Canada announced three cuts to interest rates in March. This effectively brought the rate to 0.25% and has brought prime interest rates to 2.45%. In a statement, the Bank said that these rate cuts would cushion the economic impacts of COVID-19 by easing the cost of borrowing.

At first, this brought down the cost of borrowing money, meaning lower mortgage rates. That’s why in the first weeks of the rate cuts, there was an unprecedented rise in mortgage refinances. And although day-to-day Canadians will have an opportunity to borrow at lower rates, the rate cut by the Bank of Canada does not equally reduce the cost of borrowing at your local bank. Instead of passing on the complete interest reduction to the consumer, many banks are increasing their margins. This is because lenders are seeing more risk in the borrower’s market. As more individuals lose their jobs, the risk of them defaulting on their loan goes up. These higher margins are to take this into account.

Overall, it may still be cheaper to obtain a mortgage now than before. But with such a high demand for mortgages at current interest rates, banks may further fatten their margins. Although the era of COVID-19 may decrease the number of transactions going on in Canadian markets, we can hope that lower interest rates can improve that situation.

The coronavirus has resulted in new policies and changes such as a ban of open houses, the ability to defer your mortgage payments, and lower interest rates. These changes will likely help or hinder your home buying process. However, it’s important to remain hopeful that we’ll get through this storm.

The post The COVID-19-Related Policies and Measures That a Home Buyer or Seller Needs to Know first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Winter. Everyone’s LEAST favourite season. Well, unless you are an avid skier or snowboarder… or snowshoer, for that instance.

Whatever your winter passion may be, hang onto it, because for the rest of us, we just count down the days until that mojito finds its way back into our hands on a sunny patio.

There is one thing winter is really good for — and often overlooked — and that’s listing your home for sale.

“But there’s snow, and it’s all grey and yucky outside,” you might be thinking.

That’s right. There is. And, for the most part, other people who are looking to sell their homes are thinking that too. That means if you list in winter you are gaining a bit of an upper hand here.

You are getting a head start on those waiting for the turn of the season.

Basically, what I’m trying to say is by putting your home on the market during the colder months, you are lowering the number of competitors you are up against.

Here are a few tips and tricks you can keep in your pocket to prevent any more negative thoughts about this blessed selling season.

Keep it clean

Just as you would rake up leaves from your yard in the fall, or weed your garden in spring and summer, you must, must, must keep your pathways, driveways and sidewalks clear of snow.

Not only does this make it look like your home is well taken care of and loved, but it may save you from a lawsuit if there is a slip at one of your many showings.

No one likes to shovel, but you’ll have to stay on the ball over the winter months. Be sure to get out there after each snowfall. You may even have to get out there multiple times a day — unfortunately.

On the bright side, it’s great exercise — if that was something on your resolutions list. Or, if you can, hire a young neighbourhood entrepreneur who is looking to make a few bucks.

Use your listing to your advantage

When marketing your home online, photos are worth 1,000 words. However, when you are marketing your home in winter, those photos are suddenly worth a lot more.

Use your listing to showcase your home in other seasons as well so potential buyers can imagine themselves living there year-round.

Show off those photos you took last summer when your trees and flowers were in full bloom and the sun-soaked yard screamed for garden parties and late-night bonfires.

While choosing photographs of the home’s interior that were captured during winter, be sure to select those images that are drenched in natural light or are tastefully lit by lamps, candles and overhead lighting.

Use the calendar to your ‘advent’age

Do you see what I did there? ‘Tis the season to make spirits bright. That’s what we all look forward to during these frigid months, so use this! USE THIS!

Those holiday decorations will work double time to make your home stand out and emphasize just how cosy, warm and festive your home is — even during the darkest and coldest days of the year.

During home showings, have a nice fire going (if that’s an option, of course); have some goodies baking in the oven to trigger the olfactory senses, and adorn your tree with simple, festive and sophisticated ornaments that will allow guests to picture their own families enjoying the holidays here.

Turn the lights on

Have you ever been walking at night and caught a glimpse of a home with loads of light pouring out of the windows? How inviting does that look!

Lights not only make interiors look their best, but they emphasize those cozy undertones that we are after while trying to market a home during winter. So, flick on the lights. Up the wattage in your bulbs and invite some of that warmth into your home.

Don’t forget about your exterior lights as well. Illuminate walkways and pathways leading to your home for a warm welcome — and an extra safety measure for those slippery days.

Decorate with lights, too. That’s right. Create warm layers with lighting. Set up lamps to illuminate those dark, shadowy corners and take advantage of spotlights and LED strip lighting to direct attention to your home’s finest assets.

Don’t be afraid to use holiday lighting to your advantage here, as well. Tying into my last tip, those twinkle lights look fantastic both inside and out. So, bring ‘em in.

Show off the home’s winterproofing

Have you recently installed energy-efficient products that help lower your utility bills come winter?

Have you installed new windows, LED lights or a high-efficiency heating system?

Show these off to your potential winter buyers. These (mostly inexpensive) upgrades will be greatly appreciated by the next homeowner as they will reap the rewards for years to come.

Those looking to buy a home during the winter months are typically paying more attention and are more aware of things such as materials used in construction, lifespan and maintenance on the furnace and other winter-esque things that are vital for the upkeep and durability of a home after the first snowfall.

Listing your home in winter doesn’t sound all that bad now, does it? So, if you are looking to sell your home and you are interested in getting a leg up over the competition, do not fear! With these tools at the ready, you will be able to take full advantage of winter — and not just with a trip to the slopes!

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Most people are looking for a scare this time of the year, what with Halloween creeping up on us. We pop in scary movies about ghosts, monsters and haunted houses. But, would you actually want to live in one?

When it comes to buying real estate — and, it may seem like the last thing to worry about — how much do know about that home’s past?

A lot can happen in a home that can affect the value in a sale; from mildew and water issues to grow-ops and even murders.

Barry Lebow, a specialist in stigma and agency matters, and contributor to the Real Estate Magazine wrote that “stigma is the effect that lingers after the cure.”

Stigma, Lebow says, can be real or perceived. This means that a home that is viewed negatively upon by neighbours and the community, such as a murder house, can be just as stigmatized and devalued as a home with a mould problem.

“Sometimes public opinion or word-of-mouth can result in the highest loss in value,” he writes. “Once the community knows of a problem, from a murder in the house to a grow-op, the word is out.”

Once that word is out, the home will be a tough sell for any agent. This may result in a reduced ticket price to a longer stint on the market. But, are Realtors and sellers required by law to disclose this kind of information to potential buyers?

In the U.S. there are laws that require sellers to disclose whether there has been a suicide or a murder within a property, so long as the seller knows about such an incident within a three-year period.

Meanwhile, in Canada, the rules are vague. Lebow states that in Canada only Quebec has a murder disclosure law. CBC reports there are no laws that state disclosure is a must. Rather, the responsibility seems to fall on real estate organizations in charge of creating the code of conduct for the region’s Realtors.

The Ontario Real Estate Association (OREA), for instance, “takes the position that, ‘when in doubt, disclose.’”

“Realtors are held to a higher standard than the general public and have an ethical obligation to disclose,” Cassandra Agnew Walker, senior manager of standard forms, tells OREA.

“When in doubt, we suggest that OREA members disclose a stigma because it is better to be safe than sorry,” she continues. “If a Realtor doesn’t disclose a stigma, there may be a lawsuit or a complaint to RECO (Real Estate Council of Ontario) afterwards. Disclosure is a way to prevent that argument and hassle later on.”

The Real Estate Council of Alberta states that it is up to the seller to decide whether or not to disclose a possible stigma to a potential buyer as they are not legally required to do so.

“If a buyer asks you about possible stigma, and if you choose to answer, you must do so honestly,” the website reads. “You cannot lie to potential buyers about stigma.”

It also adds that the seller’s real estate professional can’t disclose that information without their permission either, so really, it falls on the shoulders of the seller.

In the case of 11 Butler Crescent N.W., Calgary, for example, the seller decided to leave the stigma out of the listing. However, the stigma attached to this particular address is a pretty hefty one. This is the home where on April 15, 2014, then 22-year-old Matt de Grood was arrested after stabbing five young adults to death at a house party.

Sylvia Santarelli of ReMax Hallmark Realty told the CBC in February the value of a house will be affected if it was the location of a murder and covered in the news a lot. But, she says, the value will be affected “in the sense of there might be less people bidding on the homes.”

The Brentwood house in Calgary, however, sold only two months after it was put on the market. That was only four months after the city’s worst mass murder. It was purchased by a young 23-year-old man for $425,000 who knew of the tragedy that occurred within the home, but he wanted to buy it back for the community. Help rid it of some of that stigma, sort of.

He purchased the home for $64,000 under the asking price and said he would leave the memorial for the five lives lost standing in the front yard.

So, ultimately, most stigmatized homes sell. They do. But how can you sell them?

Although there is no law saying stigmas must be disclosed, sometimes it’s best to go with the “better safe, than sorry” mentality.

After all, Realtors are looking after the best interests of their clients, whether they are representing the buyers or the sellers. If there is a possibility of trouble being uprooted after the sale is closed, the Realtor representing the seller would (most likely) recommend disclosing stigmas associated with the house to prevent future issues.

As a buyer, it’s important to do thorough research on the property. Google it, search for the address in local news websites.

And be clear while speaking with your Realtor. Let them know what stigmas you would be comfortable with, and which are absolute dealbreakers. Perhaps living near a graveyard would be OK, but living in a home that was a former grow-op — even though it has been cleaned and cleared up to code — is an absolute no-go.

But keen-stigma buyers must keep in mind that they may not “scoring” that deal they think they might be by purchasing a home with history. Most times the home is listed for the same market value it’s worth as long as the stigma associated with the home does not harm health, safety or security of future owners and residents.

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