When we meet with clients for initial discussions and consultations, part of that conversation is always about their motives or goals behind their build or renovation project, which can vary greatly! More often than not though, clients are contemplating an addition or renovation as an alternative to moving. The age-old question, “should I sell or should I renovate?!” is frequently asked the answer truly depends on a number of factors. If you find yourself asking this very question, here are a few things to think about…
First, consider what you like about your current home and what you dislike or find problematic. Factors to evaluate include:
- The overall size & layout
- The size and shape of the lot itself
- And, most importantly, the location
If all of these factors meet your needs, it might make sense to stay and renovate! Once you’ve established whether or not you like your home and location enough to stay, we like to conduct a feasibility study from the get-go to ensure your goals and the project are achievable. Two main areas of the feasibility study include the scope of the project and its value.
First, to determine the scope of work and whether the desired project is achievable, we check for any potential construction hurdles or constraints. For any project involving additions or new structures, this process also involves reviewing zoning bylaws to identify the type of development that is achievable on a given lot.
Value is also an important topic that we take great lengths to discuss with many of our clients! A common concern amongst homeowners is whether they will get back the value that they are putting into a project if they decide to sell down the road. To generalize and put it simply, determining the value of a project looks like this:
Appraised Value (pre-construction) + Construction Estimate + Financing Costs (if any) = Total Investment
Projected Value (post-construction) – Total Investment = Project Value
If the project value is a positive number and the market conditions remain the same, you can move forward with the confidence that you are not overspending on your construction project.
Ultimately, it’s about finding the solution that makes the most sense for our clients from both a financial and functional perspective. Remember, the biggest factor to consider is the value of the location to both you AND potential buyers down the road. You have to determine whether the location itself is worth investing in by asking, is this a highly sought-after neighbourhood? Is this a desirable school district? What’s close by? Transit? Greenspace? Shops? The answers to these questions might be a reason to stay or a motive to leave.
Timing can be another factor that might impact your decision as there is often a different timeline for renovating versus selling. Updating your home cosmetically, in a neighbourhood that you really love, is typically a much faster timeline than if you choose to relocate. Projects of this nature typically take between 3-6 months, depending on the scope. Other times, it’s not even a question of renovating OR selling but rather a matter of renovating in order to sell, when the condition of your home will negatively impact resale value.
As part of a family of companies, we pride ourselves on having a well-rounded and unique perspective. With the real estate support of The Penzo Team, we can help to fairly evaluate properties you already own or are looking to buy and offer custom solutions that are tailored to suit your unique needs and circumstance.
At the end of the day, we can create a beautiful home for you anywhere but it’s up to you to decide whether or not you love the location and if it meets your needs.
To schedule a time to discuss your renovation or relocation options, get in touch and we will be happy to book an appointment!
