At first glance— especially for sellers in mature, established real estate areas like Toronto’s South Etobicoke—the likely response to that question might be a quick “yes.” But wait. While a major brick-and-mortar nip-and-tuck can certainly increase a home’s value, it does not guarantee an astronomical offer once it’s on the market—or even that you will recoup your reno expenses. Some things to keep in mind before you call a contractor. If your house is in a high-demand sought-after area, even if it is outdated, the location itself should go a long way to ensure a solid/good offer. So, maybe you don’t need to endure the trials and tribulations of a reno.

Chances are that a buyer ready to pay a premium price for the right location will want to do their own renovation, to their own taste.

If you want to read more about prepping your home to sell, have a look at these posts:

A renovation just to increase the value of a home is a gamble – you’re-modelling ideas might not match the taste and style of potential buyers. But while tearing down walls and delving into monster re-modelling may not necessarily be the wisest move, there are touch-ups you can do to present a house that leans toward the “blast from the past” category, in the best possible light. For instance, fix anything broken —visible damage is off-putting to a buyer, especially if it suggests potential structural problems. Giving your home some paint in light, neutral colours is an inexpensive undertaking with a surprisingly great effect. And of course, a detailed cleaning and de-cluttering of a house before it goes on the market is a non-negotiable.

On the other hand, a house in need of an update in an average-demand neighbourhood just might benefit from a reno. But you should keep in mind the overall standard for your neighbourhood and homes in the same price range. The number one rule here is: Don’t over-renovate. Location usually puts a limit on the price buyers are willing to entertain, no matter how impressive the bells and whistles.

Generally speaking, the higher the price you want to ask for your home, the more worthwhile a renovation might be. A buyer paying a premium price for a house in an average-demand area is likely expecting a nicely updated kitchen and bathrooms.

But if you want to see a good return on your reno investment, stick mostly to cosmetic upgrades. Updated taps, handles, toilets and sinks instead of new counters, cabinets and shower stalls.  And major additions, a new swimming pool, or extensive landscaping should only be done if that’s what you would like and are planning to stay in the house for a while. If you are thinking of putting your house on the market and are unsure of what updates to delve into, have a local agent check out the house. Local agents operating in niche neighbourhoods such as South Etobicoke know the standards for the area inside and out, and will be able to advise you best.