Royal LePage has released it`s annual survey of home renovations. This study looks into what renovations bring you the highest return on your dollar in the current market.

 If you are considering doing renovations, it`s critical to know what is an effective use of your money. I`ve included the full article from Royal LePage so that you can take full advantage of our research.

Should you have any questions about renovating, I would be happy to provide you with my knowledge and insights.

TORONTO, March 19, 2008 – If you’ve spent years waking up to wood-panelled walls and soft shag rugs, some home renovations, especially if you’re thinking of selling your home, may be in order.  Before picking up a sledgehammer, however, it’s worthwhile to know the cost of updating your decades-old décor, and the degree to which those costs will be recouped when it comes time to sell.  While some renovations such as updating a kitchen or bathroom may require a trained professional, there are a number of do-it-yourself projects that are sure to increase a home’s resale value, according to the Royal LePage Renovations and Returns Survey released today.
 
With April just around the corner – the busiest month of the year for home sales – homeowners may want to consider tackling some simple home improvements that will ensure their properties sell for top dollar.  The Royal LePage Renovations and Returns Survey examines some top renovations that bring the best return on investment, as compiled by the Royal LePage network.“Amid today’s competitive real estate market, renovations offer a relatively affordable means to boost the value of a home,” said Lisa da Rocha, vice president, marketing and sales, Royal LePage Real Estate Services.  “Do-it-yourself tasks such as painting walls, changing cupboard knobs or laying new flooring will make a house not only more appealing to buyers, but also offer a great return on investment.”

With the expansion of renovation chains across the country, and the proliferation of do-it-yourself television shows, it is no surprise that homeowners are tackling renovation projects now more than ever. According to Statistics Canada, renovation spending grew by 8.3 per cent in the fourth quarter 2007 to $9.2 billion, from the same period in 2006. 

Added da Rocha: “There are some renovations, such as finishing a basement that a homeowner does for their own enjoyment without much concern for the return on investment. What we have explored within this survey are renovations that are intended to translate directly into enhanced equity in a property.”

REASONABLE AND RADICAL RENOVATIONS
From simple aesthetics to washroom overhauls, Royal LePage has identified the top renovations that will increase the equity of a home.  The list is ranked in ascending order of cost of project.

1. Freshen up:  Adding a new coat of paint can freshen up a house and make the interior look like new – not to mention more spacious. For homeowners looking to sell in the near term, neutral colours are most preferred.

2. Floors galore:  Today, hard surfaces are all the rage.  If genuine hardwood exceeds budgets, laminate works well.  Buyers like to see hard floors throughout, so if possible, be sure to lay down laminate in dining rooms and living rooms, and even in bathrooms and bedrooms.

3. Lighten up:  Old or standard-grade light fixtures, electrical and light cover plates can easily date a house.  To modernize, add distinct flair to the interior, consider installing new light fixtures.  Remember to go green, and use compact fluorescent (CFL) light bulbs, where possible.

4. Pebble Beach? Well, close:  The old adage, you never get a second chance to make a first impression is extremely true when it comes to selling a home.  To increase curb appeal and entice buyers, ensure front lawns are tidy and gardening is minimal.  While there is no need to go overboard and plant an expensive Japanese Maple, adding some standard shrubs and flowers will make a home more inviting. 

5. Stylishly steel:  Similar to the issue with old light fixtures, knobs, fume hoods and backsplashes can make a kitchen seem outdated.  Sleek, stainless steel hardware designs have the biggest and most positive impact on those people looking to buy a home.

6. Opening all the right doors: An elegant entrance enhances a prospective buyer’s first impression of the house itself.

7. ROI from the ground up:  To see an even higher return on investment, replace old flooring with new hardwood.  While a range of qualities, textures and colours exist, it’s best to opt for a neutral wood colour to accommodate the widest possible array of tastes and décor.

8. White picket fence?:  Building a fence and a deck instantly boosts a home’s appeal.  Keeping kids and pets in the yard, and nosey neighbours out, fences provide the back and side yards with a sense of being finished.

9. Occupied, no more:  A bathroom situated on the main floor is increasingly seen by homebuyers as an essential fixture in their next purchase.  While many older homes were built with bathrooms only on the second floor, many homeowners are resorting to transforming closets or adding new rooms to accommodate two-piece powder rooms. 

10. Exquisite en suite:  Today’s homebuyer prefers bathrooms that have spa-style tubs and modern faucets.  Granite and marble tiles are now readily available and can be purchased at relatively affordable prices.

11. Everything, and the kitchen sink:  While prices can vary when renovating a kitchen, one thing is certain – updated kitchens bring one of the highest returns on investment.  With homeowners spending more time in the kitchen than any other room, it’s no surprise they want the best possible style and functionality.  Stainless steel appliances, ceramic sinks and clean lines on cupboards rank as the more preferred finish options.   Since kitchens and baths can be such a personal space, it’s wise not to select a dramatic style or colour scheme since your tastes may not be the same as the next owner.

TOP ‘DO IT YOURSELF’ RENOVATIONS WITH BEST RETURN ON INVESTMENT

RENOVATIONS WITH BEST RETURN ON INVESTMENT, SOME HELP MAY BE REQUIRED

Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside

An Ipsos Reid survey commissioned by First Canadian Title recently revealed that new homeowners are all too frequently unaware of the true costs of home ownership. Fully one in four first-time homeowners are unprepared for the costs and surprises that come along with the purchase.

 ”Despite the joys associated with owning a home, people are often dismayed at some of the surprise costs they encounter, particularly during the first year of home ownership,” says Susan Leslie, of First Canadian Title. Examples of these costs can run from relatively mundane ones such as having to change the locks, replacing a light fixture, or appling a fresh coat of paint to more serious matters such as property encroachment issues or unexpected claims to title.

 You don’t have to be one of those caught unaware. Serious issues such as property encroachments, unpaid liens, defects on title, or costs associated with pre-existing building code violations can be covered with the purchase of relatively inexpensive title insurance.

Twenty-six percent of new homeowners said they were completely or somewhat unprepared for the costs and expenses involved in the first year of home ownership. A full forty-three percent were very or somewhat unknowledgeable of closing costs such as mortgage loan insurance, legal fees, and land registration fees.

I recommend title insurance to anyone making a home purchase. It’s an inexpensive way of insuring yourself against some of the unexpected costs that can be incurred in home ownership. I also provide all of my customers with a worksheet that shows them exactly how much they will have to pay in closing costs. I’ll help you to avoid the potential hidden costs and show you how to make a successfull real estate purchase (or sale).

Have you heard about the couple in Vancouver’s West End that moved into their new condo and discovered that it was already occupied? That’s right. It was a newly renovated $509,000 condominium that wasn’t as perfect as they’d hoped.

Unfortunately, the young couples new home is infested with bats…at least 80 of them. The majority of the bats are living in the walls keeping the owners up all hours of the night. However, one bat was discovered taking a nap on their bed. Worst of all, because of the BC Wildlife Act the bats cannot be forcibly removed.

The provincial government did give them an exemption to this law, but the couple has chosen to wait out the bats. Apparently, once the young bats can fly they will likely move out and find a new home.

 Why am I telling you about this? Well, the couple apparently chose to purchase their new home without a property inspection prior to removing subjects. No matter how heated the real estate market becomes, this is one subject that you need to think VERY carefully about not including in any offer you make.

I have to say, this is one result that I couldn’t possibly have imagined on my own…but hopefully we all learn our lesson from this.

These days, we have far more options when searching for a new home than previous house-hunters. In fact, one of the best ways that today’s house-hunter can be certain of finding a healthy, green home is by looking for the Leadership in Energy and Environmental Design (LEED) certification. Homes built with this certification are built to exacting standards of design, construction and materials.

If you can’t find a LEED certified home within your budget, another option might be to look at older buildings. Yes, that’s right. There are numerous benefits to purchasing an older home. First of all, you reduce the ecological footprint required to produce your housing. Consider it housing recycling. The buildings can offer many other benefits such as:

• central location (think lower transportation requirements)
• the beauty of aging and weathering materials (inlaid hardwood flooring, glass door knobs, wood fireplace, etc)
• charming architectural features (coved ceilings, arched doorways, etc)
• low-dust heating systems (such as radiant heating)
• lower price point than new construction.

 When looking for a new home, these tips can help you to find the right healthy and green condo:

• Specify key areas that you are interested in residing in.
  • Spend time getting to know the city and find the communities that you like the most. Get a feel for the restaurants, cafe’s, groceries and other amenities in the community. The less you have to (or want to) travel outside of your new community the better. There’s less stress for you commuting, and less stress on the environment too.
• Communicate your priorities to your Realtor.
  • A Realtor is there to help you find your perfect home. Explain to your Realtor that you are searching for a home with as many green features as possible.
• Use your eyes
  • To minimize heating and lighting costs, consider the impact of the properties exposure to light. The best exposure is to the south, followed by east. Selecting either of these exposures will mean you get the benefit of more sun in the winter months and less overheating in the summer. Also, look for:
    • big windows
    • outdoor space with balcony or patio
    • sliding glass doors
    • space between neighboring buildings (giving you privacy and access to light)
    • views to a varied skyline with water, trees and mountains
• Follow your nose
  • You’ll find you can get a lot of information about the health of a home from your olfactory senses. In the long run, you’ll find the most positive impacts from a home that has no odours, or just the smell of natural, seasoned materials. Take a moment to close the windows, turn off the fans and then see what happens.
  • Watch for the smell of chemicals (emitted by paints, particle board, glues, etc) as well as musty odours.

The Canada Mortgage and Housing Corporation recently released these 10 steps that all of us can take to help keep our planet healthy. Some of the side benefits to adopting some of these changes include saving money, healthier living, and increasing our homes resale value!

Don’t drive, use transit

Switching some of your local travel from a car to public transit can save up to 230 kg of CO2 per year for every 1,000 KM you drive.

Think Smaller

Dropping your family car a size or two can eliminate 1,100 - 2,600 kg of CO2 each year. This change will also save you hundreds of dollars at the gas pump.

Stay Grounded

For shorter family trips, taking the bus or the train instead of travelling by plane can benefit both the planet as well as your wallet.

Reduce Home Heating Bills

If you live in an older home, improving it’s energy efficiency (with new windows, insulation, a high-efficiency furnace, etc) or even just lowering the thermostat by a degree or two can significantly reduce greenhouse gas emissions.

Reconsider Your Space Needs

Larger homes use considerably more energy. The next time you consider moving, ask yourself if a smaller home might better fit your needs.

Buy Green

When buying appliances, choosing the most energy-efficient models can save up to 400kg of CO2 per year.

Stay Out of Hot Water

Wrapping your hot water heater in a thermal blanket and keeping it turned down to 50 C can save a family of four 600kg of CO2 per year.

Eat Your Vegetables

Adopting a less meat-intensive diet can have a significant impact on your greenhouse gas emissions, plus benefit your family’s health.

Reduce, Reuse, Recycle

Cutting your garbage production by just one bag a week can save your family 300kg of CO2 per year.

You Have the Power

In response to consumer demand, many utility companies are introducing Green Power options at a premium price. By switching to green power, you can reduce your home’s CO2 emissions.

There are many benefits to making your home more energy efficient. It can reduce energy use, drafts, summer overheating, moisture and condensation problems, personal health issues, noise from outside and greenhouse gas emissions. Making only a few of these changes can lead to signifant increases in your quality of life, as well as those of future generations.

There’s an interesting new product available in Vancouver.

Have you always thought of bamboo as hard, rather than soft and supple? Well, there’s a local designer who is offering bamboo towels which the Georgia Straight calls “luscious”. These towels are apparently four times as absorbent as cotton. They’re also hypoallergenic and antibacterial. Most importantly, however, “bamboo has one of the tiniest eco-footprints around”.

 You can purchase them at Jacana Interiors (2435 Granville St., Vancouver, BC) for $12 and $28.