The real estate market continues to shift in Toronto, making conditions more difficult for sellers. However, there are many reasons to stay positive. Toronto is recognized as one of Canada’s top cities to live in. Steady population growth means housing values will hold even if they are down from their peak in March. For sellers, there are two excellent reasons to hope that things will pick up shortly. 

Like every other industry, real estate has seasons. Fall is the second busiest time for housing sales next to Spring. 

Sales activity was higher in August, with more transactions and a slight increase in the average price. This marks the first increase since values began to fall in April.

Both of these are encouraging signs. However, there are still things you can focus on that will help you improve the overall value of your house.

Choose Your Renovations Carefully

It’s common knowledge that you should always do some home upgrades and improvements before listing your house for sale. In a changing market, you want to be even more selective about what you decide to invest in. It’s critical to understand that there is a difference between renovating for your own enjoyment and updating to sell.

For example, installing a swimming pool or a fancy gazebo may provide you with many happy memories. But when the time comes to sell, some of these expensive renovations can actually cost you money. How do you know which updates are financially worthwhile? These guidelines will help.

Will the new owner be forced to make the renovations? 

Significant flaws like a leaky roof or a faulty HVAC system can hurt your total selling price or cost you the sale altogether. Necessary repairs are always a solid investment.

Are you focusing on timeless styles or one-off trends? 

Remember floral wallpaper or wall-to-wall carpeting? They were once all the rage. Now, they are outdated and make your home appear old and tired. However, classic updates like hardwood floors will never go out of style. 

Will be update help the new owner earn or save money? 

Updating to an energy-efficient technology or adding a finished basement or secondary suite will almost always increase the value of your home in any market.

Your best bet is to talk to a real estate agent before signing an agreement with a contractor. A local agent can help you choose only those renovations that will pay off the most when you list your home. This doesn’t just save you money; it will save you a lot of time and a lot of stress from your sale.

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Looking for tips on buying your next home? Here are some other resources to help:

• Upsizing in Toronto? Here’s What You Need to Know so You Don’t Overpay
• Our Top 10 First-Time Buyer FAQs
• Top 6 Misconceptions When Buying a Home

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Design Your Home to Appeal to Young Buyers 

A recent study by Royal LePage noted that up to 60% of Millennials are committed to purchasing a home at some point. More than 4 million Millennials hope to buy between now and 2027. In addition, 37% of Gen Z adults expect to purchase in the next five years.

Housing prices being what they are, some of these young buyers will look outside of the major cities. Nevertheless, many will find a way to make their purchase in Toronto, whether that means getting help from a family member or co-owning with a group of people. 

No matter how you look at it, young Canadians will soon comprise the largest group of new home buyers. It makes sense that your updates are designed to appeal as much as possible to the younger generations.

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What Features Are Young Buyers Looking For?

It helps to understand that most young buyers are budget-conscious. They’re also starting out in their careers, and they are busy. They want a move-in-ready home that they will not have to spend much money on. With that in mind, here are some top renovations to focus on to appeal to these young buyers.

• Kitchen and bathroom: These are the two most important rooms, and they must be visually appealing and modern. Young home buyers want low maintenance. Modern light fixtures and maintenance-free countertops are high priorities.
• Tech upgrades: Younger generations grew up immersed in technology. The more smart features your home can offer, the more desirable it will be. Smart thermostats and doorbells, keyless locks, and high-speed internet capability are critical. For the finishing touch, consider installing USB outlets. It’s a small, inexpensive way to add technology to your home.
• Integrated workspaces: The work-from-home trend exploded with the onset of the covid pandemic. Even though most restrictions were lifted, many companies still see the value in remote work. As a result, young buyers love the idea of a separate home office.
• Create an open-concept flow: Young buyers often dislike closed spaces in favour of open-concept layouts. Unfortunately, knocking down walls isn’t always an option. However, you may be able to remove a portion of the wall, which can make the room seem brighter and more spacious.

Is an income property right for you? Find out more about becoming a successful real estate investor in Toronto.

Renovating for a Rental Property

If you have equity, another option is to hold on to your home instead of selling it. This offers several benefits, including continuing to build equity as property values increase and generating passive income. 

As with selling, you want to do a few updates to make your home as appealing as possible to renters. There is, however, one key difference. Keep in mind that tenants will rarely take care of your home as you will. So we don’t recommend that you invest in too many expensive upgrades. Subtle changes can give you an edge over the competition. For example:

• Updated appliances
• Fresh paint in neutral colours
• Install air conditioning (many rentals don’t offer this luxury)
• Add a dishwasher
• Add storage spaces and extra shelves in closets
• Consider a fenced yard for pets

Your home will rarely need a major overhaul before renting or selling it. Talk to a local real estate expert who understands your neighbourhood to get the most value with the least amount of investment.

Do you have questions about buying or selling a home in Toronto? Reach out to ask us anything below.