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View Full Version : To Renovate or Not To Renovate


Ottawanewby
2013-12-30, 11:47 PM
Hi everyone,

My family has recently taken possession of a home in Toronto (Steeles & McCowan area). It's in good shape on the outside, but not so much on the inside; the kitchen and bathrooms are pretty much a write-off.

We want to sell, but aren't sure of the right strategy. Should we renovate? or just sell it as is? We know we'll take a hit on the price if we sell as-is, but we're not sure if it's worth the time and expense to renovate.

I would be grateful for any and all thoughts or insights you might have.

Cheers,

Lloyd

Selvi
2014-01-08, 04:13 PM
Did you buy it in intend to flip it ?

Anyways you should renovate it and sell it, when you sell it as-is, the buyer would probably be a flipper so when they flip they do it for a profit, so why should you give away profit, when you can renovate it yourself and make the profit the other guy would be making.

Ottawanewby
2014-01-08, 04:28 PM
Thanks for engaging Selvi.

Yes, I can see that there are benefits to renovating, clearly it adds value to the house. However, the down side of that route is the capital outlay, the risk we would take on in terms of finding the right contractors (and supervising them), and the time involved in seeing the renovations through.

One aspect is my own time that could be spent elsewhere, the second aspect is what I call 'bubble' risk. Much talk about Canadian real estate being in a bubble, and from some very authoritative sources (e.g., The Economist, Nouriel Roubini). This risk would suggest that selling as soon as possible would be the prudent strategy.

What do you think Selvi?

Ottawanewby
2014-01-08, 04:53 PM
And no, we didn't purchase to flip, it's part of my father's estate.

LB1
2014-01-09, 09:57 AM
I suggest engaging a realtor (or 2 or 3) and ask their opinion. Bring comparable a of not renovated homes vs ones renovated. Are ppl just replacing finishes or doing more extensive renos (additions etc) in the neighbourhood?

Ottawanewby
2014-01-09, 02:03 PM
I suggest engaging a realtor (or 2 or 3) and ask their opinion. Bring comparable a of not renovated homes vs ones renovated. Are ppl just replacing finishes or doing more extensive renos (additions etc) in the neighbourhood?

Good advice, thanks very much.