Renovation Leads to Separation – Staying Together After All the Work is Done

If you’re thinking about moving ahead with a home remodelling project, the following are some factors to consider. This is tried and true advice gleaned from over 25 years of consulting with clients in Toronto on home buying, moving, selling and renovating. It will not only save you financially, but emotionally as well. Speaking of emotions . . .

Toronto Home Remodelling: Can Your Family Afford the Emotional Cost?
There is an old idiomatic expression in the real estate industry that goes, “Renovation leads to separation.” This is especially true if the family inhabits the home while the renovation is taking place. Noise, dust, cramped quarters and dealing with unreliable contractors take a huge toll on even the most stable relationship.

This is added stress on top of professional responsibilities, child rearing and other day-to-day pressures. This is why I have always found that the most important factor to consider when deciding whether or not to renovate is not the financial cost, but the emotional cost.

After all, what good is a newly renovated home when there is no family left intact to enjoy it?

Toronto Home Remodelling: When It Makes Sense to Move Forward
If your family is prepared to weather the emotional toll, following is when it makes sense to move forward with a home remodelling project.

You Love Your Home: This is probably the best reason. If you love the basic bones of your house, its location, and the feel of the neighbourhood, then remodelling makes sense – if it’s within reason (which we’ll discuss in just a bit).

The Costs are in Line with the Neighbourhood: You can easily spend too much on a home renovation project. Following are two questions to ask that will help you keep costs in line with your desires.

The first question you need to ask – and answer – before proceeding is, “Does it make sense to spend this amount of money, on this home, in this area?” You want to be able to answer “yes” emphatically. The second question is, “When all the work is done, will my home be the most expensive home on the street?” The answer to this question should be “no.”

The reason is, any improvements you make should be those that a future buyer will be willing to pay for.

Remember, potential homebuyers pay relative to what other homes in that vicinity have sold for. So no matter how much that slate tile in the master bath costs or how great it looks, if it puts your home in the “most expensive” category, it’s unlikely you’ll recoup what you spent.

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Toronto Home Bidding Wars Are Back – Here's How to Make Sure You Win

I stopped to fill up my car at a gas station recently. While I waited for the salesperson to process my bill, I asked her how cigarette sales were going. I’m not a smoker but was curious to see how the new law banning the display of cigarettes in Ontario had affected sales. Without a moment’s hesitation she said, “Actually, sales have doubled.”

This caught me by surprise and I inquired further, asking her if she knew why this was so. She replied, “It seems that people want what they cannot have.”

Her answer reminded me of a similar situation that affects home buyers in some high-demand areas in Toronto. Often, I encounter prospective buyers who decide not to proceed with a purchase simply because no one else has made an offer.

What many of these future homeowners are in essence saying is, “I will buy that house when I know somebody else wants to buy it too.” Of course, this is not what they say out loud, but it is exactly what their actions say.

How to Win the New and Revived Home Bidding Wars in Toronto

If you find yourself in a home bidding war in Toronto, don’t panic. You can win at this game. Following are some tips for doing so.

Offer High:
Make the highest offer you can afford. This is no time to try and low-ball.

Get Your Documentation in Order: This will help to ensure a speedy sale, which can be the difference between you and another home bidder.

Do not include unnecessary conditions:
Make it as easy as possible for the seller to say yes. Note: Don’t waive a home inspection, which will be discussed in just a bit. You want to make your offer attractive, but not at the expense of doing your due diligence as a home buyer.

If at all possible have the home inspection done before you make an offer. The only downside is the small cost of your inspection in the event your offer is not accepted.

The bottom line is, if the home you are considering buying meets most of your criteria regarding location, price and amenities in Toronto, then don’t wait for another buyer to outbid you. What this means is that if the condition of the home is unsatisfactory, you can still walk away and get your deposit money back.

Success in buying a great home in prime Toronto neighbourhoods comes to those who act independently — and who brave home bidding wars secure in the knowledge that they haven’t followed the crowd.

Warning! Why Building That Large Home May Be Dangerous to Your Wallet

While the title of this article may sound a bit dramatic, it is intended to catch your attention to discuss why building a large house may not be the best financial move you can make.

Weighing Today’s Large Home Needs in Prime Toronto Neighbourhoods against Tomorrow’s Finances

Chances are, you’re planning to have that four or five-bedroom home built because your family is growing. This is perfectly logical.

HOWEVER, as anyone who has children knows, they grow up and move out quicker than you ever imagine. Then, what you’re left with is a house that is too big for just the two of you.

Why Large Homes in Prime Toronto Neighbourhoods May Be Harder to Sell Than You Think

“So,” you may be thinking, “I’ll just downsize. I’ll sell my house and move to a smaller home or perhaps a condominium.” But, this may not work out the way you think. There are several factors at play that will conspire to drag down the value of large homes in the future, making them harder to sell. Specifically:

Retiring Baby Boomers: Since the late seventies, baby boomers have been the driving force in the housing market. And, with millions of them in the U.S. and Canada set to retire, the housing market is set to change dramatically. This group will be downsizing to smaller dwellings – not larger ones.

The New Homebuyers: Young adults will make up the bulk of new demand for housing. And with the shift towards a greener economy and environment, efficiency, lower maintenance and lower taxes are their priorities – not massive amounts of space.

Immigration: Immigration to Canada has slowed considerably, especially to cities like Vancouver. This is important to know because the first wave of immigrants tends not to be homebuyers. They struggle and sacrifice in order to give their children a better life. And many of them succeed, producing a second generation who has the buying power to afford larger, more expensive homes in prime Toronto neighbourhoods.

If the predictions for lower housing demand by population experts such as Boom, Bust and Echo author David Foot unfold, you may find yourself owning the home equivalent of a gas-guzzling SUV.

On the other hand, if your financial situation is such that money is no object, then by all means go ahead and build your large home in a prime Toronto neighbourhood – and live happily ever after in your Casa Loma!

Looking for no-strings-attached advice about buying or selling in central Toronto?  Write to me at  rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519