New Homes - Decorator bonuses

In Ottawa, many new home builders such as Richcraft and Valecraft are offering decorator bonuses with every purchase of a new home. Bonuses usually range from $5,000 to $15,000 and can be spent however the purchaser wishes.



So what is the best way to spend these bonuses if you are looking at reselling your home in the future? The top three areas of the home to spend your bonus are:


1 -- the kitchen


2 -- the bathrooms


3 -- flooring


In the kitchen, you want to look at real wood cabinetry, lighting, a back splash, and the type of flooring (ceramic or hardwood). Other features home buyers look for are: pot and pan drawers, pantry storage and efficient use of space. When making your selections you do not have to spend a fortune but look at a neutral or popular colour palette, the design centre should either have samples of colour packages for you to look at or helpful associates in the showroom. Add additional pot lights in task areas such as the kitchen island or breakfast bar. Another added touch you can do after purchase, is updating the hardware on the cabinetry, this can add some more style to your kitchen.



The bathrooms, you want to look at ceramic, lighting, faucets and shower heads, storage space solutions and real wood cabinetry. Add pot lights above a stand up shower and/or roman tub. Again, make sure you stick with a neutral colour palette - magazines can also give you some great ideas to inspire you. Right now the spa look is very in style so peruse the builders selections and see which items can be used together to achieve a similar look. After purchase you can personalize your bathroom with a framed mirror and more modern overhead lighting above the mirror. Also go to your local home improvement store, and purchase a shower head with varied pressure options or a rain shower head - this will help with future saleability and increase your enjoyment!



Flooring - most if not all purchasers are looking for hardwood flooring in the home and ceramic in wet areas. The flooring in the kitchen can be ceramic or hardwood. Hardwood in the kitchen is becoming more popular and looks great especially if the floor plan is very open concept. Continuing the same style of flooring makes the space seems larger (a bonus for potential buyers). Too many types of flooring in any size space can make it feel and appear small. The dark walnut stain is also very popular but buyer beware - darker floors show a lot of dust and pet hair. You do not have to upgrade your type of ceramic to a porcelain tile or marble but look for an option that is variegated and looks like natural stone. If you cannot afford hardwood throughout the home focus on placing it in the living room and dining room. Many buyers are fine with carpet in the bedrooms.


All home builders mark up on all home upgrades so select yours wisely. This will make a difference in the resale market and especially if your home is in a new community, yours can get lost in the mix so make your home special by adding enough extras to draw buyers into your open house but still keeping (and perhaps even adding) money in your pocket once it is sold!

Help me spend my reno money!!

When it comes to home renovations, some money is better spent. The money invested in improving your home will not always translate into an equivalent return in the selling price of your home. However, with planning it is possible to both increase the saleability of your home and even profit from your home renovations. Don't forget about the new home renovation tax credit (http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html) help anyone looking at renovating their homes. Check out the above link for more information.

Renovations do not have to be extensive or expensive to earn a high rate of return. In fact, one of the cheapest and simplest improvements yields one of the highest paybacks - paint! A fresh coat of paint on interior walls returns an average 73 percent payback. So, a $1,500 paint job could be expected to increase a home's selling price by $2,625 (a $1,125 profit).

To maximize saleability ensure that your new decor is modern and tasteful. Choose shades of white and tame versions of popular colours (look at new show homes for color ideas). Steer away from too many personal touches and custom work if you plan to re-sell. It is unlikely that your investment will be recouped and it may prevent the quick sale of your home. Also, try to keep renovations in harmony with the fashion of your neighbourhood. A fresh paint job is one way to increase your profit and the number of showings but you also want to make sure your home is clean, decluttered and organized. Some home improvements will make your home sell faster but will not necessarily increase your profit. An example of such an improvement is installing a granite counter top. A granite counter top will be expected at a higher purchase point but your basic town home will not really benefit from such a cosmetic update.

So where should you invest when it comes to home renovations? The kitchen and bathroom are key areas to focus your renovation attentions. With average paybacks of 72 and 68 percent respectively, new fixtures, cabinets and tiles could be well worth the money and/or time and effort. The AIC's ( Appraisal Institute of Canada ) study highlighted the top ten renovations and the average rate of return:

1 -- Interior painting and decor - 73%
2 -- Kitchen renovation - 72%
3 -- Bathroom renovation - 68%
4 -- Exterior paint - 65%
5 -- Flooring upgrades - 62%
6 -- Window/door replacement - 57%
7 -- Main floor family room addition - 51%
8 -- Fireplace addition - 50%
9 -- Basement renovation - 49%
10 -- Furnace/heating system replacement - 48%

One area that tells the purchaser a lot about the home and seller is maintenance. If a seller wants top dollar for there home small repairs and basic maintenance must be attended to. Agents on the Bennett Real Estate Pros (http://www.bennettpros.com/) team have had buyers reject a home because of something minor such as peeling paint on a deck. The potential purchasers felt if the obvious was not attended to, other problems were hidden and not attended to. In this market, potential buyers are educated and are looking for something specific. If you are selling make sure your home is picture perfect.