We regularly help our clients make decisions on whether renovating prior to selling a home makes sense.  In some cases, renovating and enjoying the improved home for a number of years before selling is actually the best option.

We have lots of experience with what appeals to buyers due to the  umpteen thousand different homes we’ve seen in our work with our clients.  In case you didn’t know, “umpteen” is an actual value – it falls somewhere between “a wee bit” and “a pile” in the measurement scale.

Despite this practical experience in what constitutes a worth-while renovation for an eventual sale, we’re not contractors, architects, electricians or plumbers.  As such, we rely on the expertise and skill of such professionals to undertake the work or to speak to the feasibility or cost of any renovations.  At the same time, we love to learn and we’ve found a resource from the good folks at Canada Mortgage and Housing Corporation (CMHC) that we often share with clients.

The Renovator’s Technical Guide is a way of approaching renovation projects, using the House-As-A-System approach developed by CMHC.  The House-As-A-System approach considers how all the systems in a house interact — and how a renovation to one system can affect another.

While the guide was last updated in 2007, it still remains a fundamental resource that can help you think through how a home works and what renovations make sense for you and your family.  We’ve linked to the full PDF of the document below, but let’s give you a taste of some of the topics it covers.

Exterior Renovations

General Renovations

Energy-Efficiency Renovations

If you want to talk specifically about your home and what we would recommend as work to be done that will add value for your eventual sale, then we’d be happy to come give you our opinion.  Get in touch with us to arrange a time!

One of our trusted vendors in the home inspection field is HouseMaster, and after 40 years of experience inspecting houses and more than 3 million homes inspected, they are a great resource for what is likely to be an issue in a house depending on its age.

Let’s dive into what components of your house are most likely to experience defects in the four big time periods.

Here’s what to look out for!

Here’s a simple table based on the HouseMaster Home Defect Survey that identified what component of a house is likely to experience a defect based on the age of the home.

The table is interesting in itself, but let’s clarify a few things and then interpret what it means for each age category of house.

What’s a defect?

Knowing something might go wrong is helpful, but knowing what that something might be is even more helpful.  Here’s the most typical defects defined for each component of the house.

STRUCTURE – this includes the need for major repairs to the house framing or foundation due to construction deficiencies or damage.

ROOF – defects observed include damaged roofing and flashings requiring repair or replacement. Most roofs will exhibit wear by the time they are 20 years old.

EXTERIOR ELEMENTS – conditions noted in this category include damage or other defects associated with chimneys, siding, decks, porches and stairs.

INTERIOR ELEMENTS – this includes, but is not limited to, defects requiring significant repairs in the living areas of the home affected walls, floors, or ceilings.

WATER PENETRATION – this category represents the homes that exhibited evidence of significant prior or current basement or crawlspace water intrusion conditions.

INSULATION – while not based on an energy audit, these numbers represents the homes where a visual inspection indicated the amount or placement of attic insulation was significantly below current recommended levels.

CENTRAL HEATING SYSTEMS – the typical heating system has a 20 year service life. Defects observed indicated a need for major repair or replacement.

CENTRAL COOLING OR HEAT PUMP SYSTEMS – the typical air conditioning or heat pump system components need major repair or replacement after about 10 years. Defects include equipment and distribution problems.

ELECTRIC SYSTEM – most electric system defects are significant in that safety hazards exist; however, these numbers also represent the times major repairs or upgrades were required due to the aging of components.

PLUMBING SYSTEM – these numbers represent physical defects associated with the piping, plumbing fixtures, or water heater, which typically has about a 10 year service life, as well as water flow or drainage issues.

WOOD DESTROYING INSECT DAMAGE – a home inspection does not include an inspection for wood destroying insects or other pests; however, these numbers represent occurrences that damage associated with wood destroying insects was observed. Warmer climates will have higher incidents of infestation.

Now that we have a handle of what the defects might actually be, let’s review the big picture for your house depending on its age.

The Big Picture if your house was built after 2000

By far the biggest concern (with 38% of homes likely to experience a defect) you will have in a house that built in the last 22 years is the exterior elements such as chimneys, siding, decks, porches and stairs.  This is particularly true in a country like Canada where we face significant seasonal variations in temperature and natural forces affecting our houses.

The next big one is the roof (with 25% of homes likely to experience a defect) which follows the same logic related to exposure to the elements.    While many roof materials promise a life of 25 to 30 years, it does seem common to start to see some issues between 15 to 20 years.  Whether it is flashing that has loosened, or shingles that have curled, it is worth having a roofer take a look at what’s above your heads to make sure your home stays dry.

On the low side of risk (with just 4% of homes likely to experience this defect) is damage to the wood of your home due to insects.  It takes time for termites, carpenter ants and other insects to damage your home, and they need to have access, perhaps due to exterior or roof defects, before that can even begin.

The Big Picture if your house was built between 1980 to 1999

More than half (53%) of homes of this age are likely to experience defects related to exterior elements.  The more time that your house has been exposed to the elements, the more likely some wear and tear and damage is to occur.

The second most likely (38% of homes likely to experience a defect) is actually the electric system, followed closely (at 35% of homes) for the plumbing.  When you think of a home that is between 22 to 42 years of age, there is a significant chance that the original layout and fixtures has changed during that timeframe.  Additional wiring or plumbing can have unintended consequences on those systems and when you add in wear and tear and the aging of components, it is not uncommon to need a plumber or electrician at your house.  When you look at what a newer home (built after 2000) experiences, the likelihood of electrical defect almost doubles and the change of plumbing problem more than doubles.

At the low end of likely problems in a home of this age (with only 11% of houses experiencing defects) is the central cooling or heat pump systems.  While such systems can have lifespans of 20 to 25 years, we can tell you that we’ve helped many clients buy homes where the AC unit is “near the end of it’s expected lifespan” and sold that home 5 to 10 years later with the same AC still chugging away.

A big change from the previous age category (built after 2000) for these homes is the prevalence of wood destroying insect damage, which went from 4% up to 20%.  That’s a significant change from being quite rare (4 out of 100 new homes experiencing the issue) to relatively common (1 in 5 slightly older homes experiencing the issue).  It just becomes more prevalent from this age onward, so keep an eye on the wood in your home as it ages.

The Big Picture if your house was built between 1940 to 1979

The trend with exterior elements being most likely to see a defect continues, with 60% of homes of this age likely to see issues with exterior elements.

The roof and electric system are more or less tied for second place in homes of this age, with the roof have defects in 53% of homes and the electric system in 52% of homes.  The roof makes sense due to the exposure aspect, and the electric system increase is also likely due to the copper shortage in the mid-1960s, which saw aluminum wiring introduced in some homes.  While aluminium is more conductive than copper, it does become defective at higher rates due to the higher rate it contracts and expands.  As well, if a mix of the two is used in a home, it can cause issues that need to be remedied.

The low end (19%) of the likely defect component remains the central cooling or heat pump systems for homes of this age.  It would seem that these systems, which are typically regularly used and ideally regularly maintained, don’t experience defects at the same level as other components of a house.

In terms of significant changes from the previous age range (1980 to 1999 built homes), houses built between 1940 to 1979 see the likelihood of insulation defects more than doubling, going from a 20% likelihood to a 45% likelihood.  Part of that may be due to the difference in recommended levels of insulation from when the homes were built, but also settling and inefficiencies over time.

The Big Picture if your house was built before 1939

With a surprising number of homes in Toronto and older communities in the GTA built before this time, it’s worth knowing the most likely defects in these older homes as well.

The component most likely to see a defect in this age of home remains the exterior elements, now at 65% likelihood.

We have three other components in the 55% to 58% likelihood of defect range, namely the electrical system, the plumbing system and, new to our list of significant likelihood, water penetration.  The aging electrical and plumbing systems running into issues makes sense, particularly as building standards in this time included knob and tube wiring and lead plumbing.  Water penetration becoming an issue is likely related to the exterior element issues over time creating possible areas of penetration.

At the low end of likely defects arising is the central cooling or heat pump systems, which has actually dropped down from 19% in homes built between 1940 to 1979 to just 10% for homes built before 1939.  This is a bit surprising but perhaps due to such homes not having such systems (or certainly not modern versions) and having experienced a major upgrade in relatively recent times.

It is fascinating to see what components of a house are likely to experience defects based on the age.  There are some significant differences in the different eras of home building.  When we look at the average likelihood of all the defects occurring, based on the age of the home this is what we see.

• 18% of homes built after 2000 will experience some combination of these defects.
• 29% of homes built between 1980 to 1999 will encounter defects and you’re more likely than not (over 50% do encounter them) to see some exterior elements defects.
• 39% of homes built between 1940 to 1979 will encounter defects, and you’re more likely than to experience roof, exterior elements and electric system defects.
• 43% of homes built before 1939 will encounter defects, and if you own a home of that age, you’re more than likely than not to experience issues with exterior elements, water penetration, insulation, electrical systems and plumbing systems.

Now, a word of caution before you refuse to ever buy an older home again.  All of the percentages we’re referencing above are based on what HouseMaster inspectors found when they inspected homes of these age.  It doesn’t mean you’ll encounter these defects in every home of that age, it definitely doesn’t mean you’ll encounter these issues every year or even in your ownership of the home.

If you use this information as a guideline for what you need to consider and ask about depending on the age of a prospective home (or your home), then you will have a much better chance of avoiding an unpleasant surprise!  If you’re interested in buying a home but worried about unexpected costs, then we’d love to work with you and make sure you’re informed and confident in your decision.  Get in touch with us to discuss next steps!

We’ve previously written about how you can decide if it makes sense to renovate a home or not, as well as what renovations give you the best return.

Let’s consider a question we are often asked by our clients – is selling their home “as is” a good idea?  While we would say that in general the answer is no, there are three situations where foregoing renovations makes sense.

1.  Before a Market Shift

It can take a significant amount of time to make a home look it’s best.  In the weeks or months that you are planning, booking contractors, ordering supplies and doing the actual renovation, the market can shift.

Whether it is a seasonal shift, where you miss the hot fall market and end up selling in the dead of winter, or an event-driven shift, such as new government measures designed to cool the market, waiting to sell can sometimes cost you money.

If you have the ability to renovate as well as hold onto the renovated home until the market is hot, then it almost always makes sense to do the renovations rather than sell “as is”.  If, however, you are working to a deadline that doesn’t allow you to wait once the renovations are done, you need to carefully consider if there is enough time before you’re selling in a market you’d rather avoid.  Remember that renovations often take longer than expected, so make sure to build in a time buffer to your plans.

2.  When Your Home is Among the Lowest Price in the Area

In any street, neighbourhood or building, there are significant differences in value of houses or units.

Whether it is size, features or location, there are often situations where the range of sale prices can be significant, with the most expensive home sometimes double or even triple the price of the cheapest option.

If your home is at or near the bottom of the price range for your street, neighbourhood or building, selling it “as is” can be a very effective strategy.  Put simply, buyers who want into your area often have the budget to both buy your home as well as do the renovations themselves.  It makes financial sense to them to spend the additional money after purchase as they are getting into the area that they want at a combined investment they can afford.

Conversely, if you are at or near the top of prices in your area, selling your home “as is” is not likely to be effective.  Buyers who are paying that price in your area expect a home that has an equally high level of finishes.

3.  If There is Infill Potential

The final situation where skipping the renovation may make sense is when your home has infill potential.  Infill refers to any project that builds new housing in an already established neighbourhood.  In this case, we’re talking about a street or neighbourhood where the older housing stock is slowly being torn down and replaced with new, modern style homes.

If you have a mix of housing types and age on your street, with recent new builds having taken place, and you have a home where you haven’t done significant renovations, you might consider skipping even the cosmetic updates and just sell “as is”.  The likely purchaser is either a builder who wants to tear down and build and sell a new home on your lot, or an end-user who plans on hiring a builder to do it for their own use.

It isn’t quite accurate to say this means you are selling for land value only, as it can be quite difficult to get a mortgage on a vacant lot.  In the case where you sell your home “as is” to someone who plans on tearing it down, your existing home allows for a conventional mortgage to be secured, at conventional mortgage rates.

While it is often smart to put your best foot forward when you sell your home, it can sometimes make sense to skip the renovations and just get it on the market.  If you want to talk about which approach makes sense for your home, get in touch.

The attributes that appeal in a home have changed significantly this year and while some features have just increased in appeal, there are others that have become far less important.  Today we break down the five things that buyers want in a home now, in order of importance.  Let’s start with number five and work our way up to the number one thing that buyers want now.

#5 Safe Entry Zones

When you come home from a foray into the world these days, you need a space to take off your mask, put down your bag, slip off your shoes, wash or sanitize your hands and so forth.

Homes that have a zone where you can safely and easily make sure you’re not contaminating your home with the outside world are very appealing to buyers now.  We may see hand washing stations (a basin, with no running water per se) and ultra-violet or other decontamination tools become the norm.

#4 Better Storage

Yes, storage has always been important to buyers, but the pandemic has pushed this need to the forefront like never before.

Whether it is stocking up on food and cooking supplies or finding places to put the work and study supplies you suddenly need in the home, on-site storage solutions are one of the hottest products in town.

#3 Outdoor Space

If you’ve spent more time in the backyard of friends and family this year than ever before, you’re not alone.  Outdoor space offers both excellent ventilation, and in many cases, more space to physically distance than might be possible inside the home.

Homes with appealing outdoor space are commanding significant price premiums right now and if there is an outdoor living space (deck, gazebo, firepits and so forth) on the property, we see buyers willing to pay more.

#2 Convenient Layout

With the desire for more outdoor space to safely visit with family friends comes the reality that visits are pretty short if there isn’t a way for them to use a washroom if need be.  Homes that have no washrooms near the outdoor space, or even on the ground floor, are less practical for having visitors.

If your visitor can open a door and have easy access to a washroom inside the home, it is much more appealing than having them walk inside, up or down stairs to use the closest washroom.  If you have only a single washroom in your home, this is even more of a challenge these days.

#1 Privacy

With your home now not only your refuge from a dangerous world, but also your workplace and your kids’ classroom, the need for privacy is huge.  With multiple members of the family working or learning from home, open concept homes have dropped considerably in appeal.

Once unpopular, small, private spaces in the home are making a big comeback.  The ability to close a door and not have your family inadvertently interrupt a zoom call or do something embarrassing while you’re on speaker with your boss is now a must-have for many buyers.

If you’re interested in talking about the ways in which your home could be made more appealing to buyers (or just yourself!), then feel free to get in touch.  We’d love to chat about your situation and the way forward.