We’ve compiled some helpful tips on how to go about moving with your pets and how to keep them happy and healthy along the way. 

Start preparing early for your pet’s transition. This will look slightly different depending on what kind of pet you have, and how long the move will be. If you plan on driving with your pet to your new home, make sure to familiarize them with the car and any traveling bag or crate they will be in. You can introduce their carrier into their home environment early so that they become accustomed to how it smells, and any noises it could make. This will ease their stress on the day of as they are already familiar with it. If your pet is not accustomed to traveling in a vehicle, you can also do short ‘test runs’ with them to make them more familiar with what driving in a car is like. Some pets love riding in vehicles, but for some this can be very stressful! If you have a longer drive to your final destination, make sure that you book pet friendly hotels.   

Pack your pets a bag just for them before the big move. This can be their very own bag full of everything they would need for a couple days as you unpack in your new home. You can include both their regular food they would need, as well as any of their favorite treats or toys. If you are traveling longer distances, make sure to have a plan for feeding and making sure your pets drink enough water on the drive! You can also include favorite toys and blankets for them, as they are another familiar scent for them in this new place. 

Keep them out of the action, both on moving day and as you pack. Moving is stressful, and your pets will pick up on this from you. Making sure to stay as calm as you can in the process can keep them more at ease. If you have friends or family close by that can look after your pet on moving day, this can also really help them. If this is not possible, do your best to keep them in a safe place in your new house. Moving day means the doors in the house are wide open as people are coming in and out, and the last thing you would need is an escape of your pet! Whatever room or space you keep your pet on the day of, be mindful to make sure they have familiar things in the space, like toys or their bed or favorite blanket. Making sure to stick to their normal routine can also be helpful, be it walking them frequently, or feeding them at the same time as normal. 

Update their tags with your new address, as well your address with their vet. If you have not moved too far away from your vet, you will want to update your address, and possibly phone number, with them once you have moved. You will also want to update your pet’s collar tag with their updated address, so that if they get lost in the neighborhood they can be returned to the right home! 

Acclimate them to their new place of residence. This can look different depending on what kind of pet you have, but a new home comes along with new smells and noises for your pet. Letting them sniff or walk around your home can help them adjust as they take in this new environment. Being there with them when they explore for the first time can be helpful as it adds some familiarity to the space already. If your pet enjoys going for walks, taking them outside and exploring the neighborhood together can also make them more at ease. This also lets you have a chance to explore your new area! 

We hope you find these tips and tricks helpful as you move into your new space! Let us know what you think. 

Buying a Waterfront Property: You Mean a Cabin? 

So you are thinking of buying a waterfront property? When you mention the expression: waterfront property, the archetypal connotation invoked is the imagery of a cabin or cottage. Boats, fire pits, s’mores, and a relaxing time. However, what many fail to realize — given their mental assimilation between the two — is that a waterfront house can and is more than just a cabin. 

By definition a waterfront property either “has direct access to a natural or man-made waterway such as a lake, river, channel or canal” or “it is separated from the water by a right-of-way, private road or unopened road.”

What to Consider: Necessary Assessments 

At YYC Real Estate Advisors headquarters in Calgary, there are various local neighbourhoods where you can find waterfront properties. Lake Bonavista, Mahogany, Coral Springs, Sundance, Mckenzie Towne, and various other communities have man-made or natural lakes allowing for not just a waterfront property but a home. This further disassociates waterfront properties from cabins given many residents of these communities reside in these properties calling them their waterfront homes.

Intended Uses 

When assessing a waterfront property it is essential to determine your usage intentions. Will it be your dream home that you retire and live in, a family home sustained for a long period of time, a temporary pleasure house, or recreational property? If your decision resides with the latter two options, consider price as a stronger determination. Since it is not your forever home, deal hunt. Shop around and compare prices rather than getting a fantasied dream estate. It is still important to factor in location and the physical building itself, but do not let these override your decision-making shrewdness. On the contrary, if your answer resided in the two former scenarios, hone in on the variables of property location and water quality access. These two variables operate conjointly and should be prioritized over the price. While we still encourage you to find and get a great deal, if a waterfront home comes up and it fulfills all your desires, do not let it slip away without an offer. Consequentially, vacation house or dream home you will always be constrained by your finances. 

Budget 

Budgeting for a waterfront house is mainly dependent on your intended uses. If this will be your aspirational home, expend more capital on it. It is more warranted to reach the upper limit of the recommended gross debt service (GDS) ratio (gross monthly income divided by monthly housing costs) which is considered no more than 32% as instituted by the Canadian Mortgage and Housing Corporation. For temporary and vacation waterfront properties, this percentage will be lower if it is a secondary residence. Taking into account your primary place of residence, you will be able to determine what percentage can be allotted to this recreational house. This can also be used as a guide to see if it is even feasible to finance another house. If your primary place of residence has dropped in overall GDS ratio through the years, you can take your primary residence’s GDS ratio and subtract it from the guided 32% to realize the means you have to work with. Either way, if you are fortunate enough to deploy a handsome amount of money, the aforementioned points in Intended Uses applying to temporary pleasure houses or recreational properties become insignificant. In this idealistic scenario, you can treat the property as if it were a dream home and prioritize location and waterfront access in comparison to price hunting; still abiding by an adequate GDS ratio. Even though this standard 32% GDS ratio is beneficial to follow, you may be able to stretch this rule given you are buying a waterfront property.

Waterfront Housing and Property Appreciation (Inflation) 

Using CREA (Canadian Real Estate Association) housing statistics, we reveal lucrative information for potential waterfront buyers and owners. Typically, waterfront properties appreciate at a higher rate when compared to non-waterfront properties. For context, accounting for 2022, Q1 (first quarter) transactions, CREA found the median for residential non-waterfront properties appreciated merely over 26% year-to-date. This can be contrasted to waterfront properties which saw their values increase by nearly over 32% year-to-date. This almost 6% increase is a sufficient amount to consider when appraising a waterfront property. Accounting for this added property inflation, we believe you could justify spending 3% – 6% over the 32% recommendation. Given this added property inflation, even if finances do not go accordingly, you know that the property can be liquidated for a respectable return. However, although on-average waterfront properties appreciate more than their non-waterfront counterparts, it is vital to thoroughly investigate the property’s area before purchase. 

Investigating the Area and Body of Water

While you may often hear about a lake, beach, or another body of water being touted as a great place, this is not always fully applicable. Some property locations might not be as vibrant in comparison to the other offerings surrounding the water. It is important to consider factors such as shoreline, sand erosion, sand-/beach-terrain, quality of the water, common water debris, and other idiosyncrasies not forecastable until further inquisition. Another notable variable pertaining to the land is if there are any easements. In particular, some properties may have an easement to allow for shared water access with other neighbouring properties. If seclusion is important, make sure to inquire to see if the property has an easement of this nature. Conversely, it may be beneficial to look for a property with this type of easement that is not directly on the waterfront. This would grant you access to water usage without having to pay the premium of being on the water. Upon acquisition of this information about your potential property candidates, you can more accurately determine which property will have better resale value and be more enjoyable in usage. Fire pits, boats, patios, and a personal beach are all factors that add to this enjoyability variable, however, you must weigh their costs.

Additional Costs 

In addition to customary housing expenses, waterfront properties can have extra costs that tend to be measly overlooked. The most overlooked expenses are in the form of added insurance policies. These can include wind insurance, water insurance, flooding insurance, and general hazard insurance. Further expenses to consider are the costs of a dock, boat, increased property tax, and increased water and sewage rates. Amalgamating these costs, you will be surprised at how quickly they add on to the totals of your monthly housing costs.  

Your Decision: Summing Up the Categories 

After reading this article, we hope it helped you make a more informative decision when you are ready to buy a waterfront property. These are unique property types that always amass a large interest. Their scarcity makes them appreciate generously and they provide a unique utility that non-waterfront properties cannot match. This uniqueness also makes them susceptible to eccentric factors and added costs. These variables should never go unchecked and we hope our illumination of these components will be of consideration for your waterfront property … or are you buying a cabin? 

How to Value a Real Estate Property

In real estate, the terms “price” and “value” are frequently interchanged. However, there is often a distinction between the two. As billionaire investor Warren Buffet once said, “Price is what you pay. Value is what you get.” In this article we will go over some common factors that affect the market value of a home, as well as three ways used to value a real estate property. 

What Is Real Estate Value?

Real estate market value – also referred to as fair market value or FMV – is the price that a property would sell for on the open market under usual conditions with arm’s-length parties. At a given point in time, it is the price a buyer is willing to pay and a seller is willing to take.

Factors that Affect Market Value 

Location

You’ve probably heard that the three most important rules in real estate are location, location, and location. Things like crime rate, school district, and near-by amenities will affect the market value of a property.

Property Characteristics

External

The external characteristics create the first impression for a home buyer. The lot size, architecture of the home, front yard, the street, neighboring homes and the general condition of the home. As well, any recent renovations or replacements of exterior components of the home can be attractive to home buyers. 

Internal

The inside of the home is what most people are focused on when house hunting. The floor plan, number of bedrooms and bathrooms, age and quality of finishes, type and appearance of flooring, condition of the heating and cooling system, and energy efficiency are all factors that might affect a home’s value. 

Supply and Demand

The market value of a property might fluctuate depending on the overall demand for real estate at any one time. A market is described as a seller’s market when demand for real estate is high and there are more buyers than homes available. Market values tend to rise in a seller’s market.

On the other hand, there are sometimes more people trying to sell homes than there are buyers. The market is described as a buyer’s market when there is more supply than demand. Market values tend to decline in a buyer’s market. Currently in 2022, it is generally viewed that it is a seller’s market due to the high demand of homes, and increased inflation.

How to Determine Market Value 

There are three methods used today to determine market value for a real estate property.

1. Comparable Sales Approach

This method is used mostly for land and single family homes. When using this method, first determine characteristics of the property like square footage, number of bedrooms and bathrooms, construction date, lot size, and recent upgrades. Afterwards, you’ll want to search for recent sales of homes with characteristics most similar to the property of interest. You will need to make adjustments to the values of the various characteristics of the similar homes to get them equivalent to the property of interest. For example, let’s say you found a property with the exact same characteristics as the one of interest but it has an extra feature – a cooling system. In this case, you would take the price of the property and subtract the cost of the cooling system to retrieve an accurate market value for your home. 

2. Income Approach

The income approach determines the market value of a rental property based on the current or net operating income (NOI) generated by using the cap rate formula:

Cap rate = NOI/Property value

For example, an investor determines that the market cap rate for a multi-family rental home is 8% in a specific real estate market. The rental home currently generates an annual rent of $18,000, has annual operating expenses (excluding any mortgage payment) are $6,200, for an NOI of $11,800. 

The property value is calculated by rearranging the cap rate formula, and solving for the property value:

• Cap rate = NOI/Property value
• Property value = NOI/Cap rate
• $11,800 NOI/8% cap rate = $147,500 property market value

3. Cost Approach

This approach is used to determine market value based on the current cost to construct a similar home, using today’s materials, design standards, and construction techniques. When using this method, you must account for the remaining useful life of depreciable assets, such as the home itself. A frame house typically has a useful life of 100 years. Additionally, you must add the value of the land itself (use comparison approach) as it is not a depreciable asset.  

Conclusion 

There are several methods for determining real estate market value. But, at the end of the day, current fair market value is the price that a buyer and seller willingly agree to at any particular time. If you have questions about how much your home is worth, we offer complimentary home evaluations. Reach out to us today if this interests you or if you have any real estate questions.

Basics of Interior Design: Conceptualizing the Morphology of Interior Design

The basis for different interior design approaches is typically derived from the premise of the five main methodologies of this discipline. By comprehending these methodologies, a designer enables their awareness of the ontological classifications of designs. This enablement facilitates the ability to categorize elements of each discipline and how they can be relevant to a particular interior’s narrative. These foundational theories are enclosed physical space, personalized space, phenomenological space, as a backdrop for social interaction, and the interior as a process of interiorization. Understanding these theories, we can then begin to look at the key elements and basics of interior design principles.

Enclosed Physical Space

The enclosed physical space concept centres around the inside of the architectural envelope explored from the perspective of vetting the existing encasement. 

Personalized Space 

Examining interior design from a personalized space perspective, utilizes the expression of clients’ subjectivities and explores the area from a psychological perspective. Consequently, this observes the emotions, attitudes, and thoughts that a place can evoke. 

Phenomenological Space

Phenomenological space discusses the conception of interiors in terms of experiential and sensory qualities. Tactility, visual aesthetic, aromas, and ambiguous designs are topics rooted in this methodology.

As a Backdrop for Social Interaction

Investigating interior design as a backdrop for social interaction prioritizes the ethical ramifications typically elicited from public locales. 

Interiorization

Here the shift of the interior design approach looks beyond the interior as a preconceived artifact; freeing it from the conceptualization of an architectural envelope to where interiors shape the temporal relationship of people with their intimate built environment. 

Basics of Interior Design: Key Elements

Key elements and the typical attributions that facilitate the narrative a room can or is attempting to emanate. As a result, designers exploit these elements for their evocative potentialities.

Door: the Transition 

The door can serve to mediate transitions between two spaces or cater to the aesthetic of one interior environment. An important question to ask; would this door be connecting two spaces or dividing them? If dividing, the door is a gateway that can be used to conjure an expectation for the persona of a room that will unravel upon opening the door. This can tactfully be used for adding to the grandeur of the room that awaits. Contrary, if attempting to relay equal weighting to each interior space, it would be wise to use the door as a connection point of mutual interest and purpose to both spaces it segregates. 

Floor: Cementing the Experience

The floor is mainly assessed through its tactile sensation and the degree of detail used in its material. Is the floor designed to elicit an intimate environment or intended for industrial use? Is the floor intricate in its patterning or simplistic? These two questions are important to assess when determining the directionality a floor is catered towards. Typically, darker tones create a more intimate experience whereas lighter shades are perceived as more expansive and move the eye more quickly through the room. Intricate patterns possess more potency to alter our psychological evaluation of a room’s objective; while creating a more methodical observation process for the person. Simplistic patterns move the mind more quickly through the space and help to produce a more spacious feeling. 

Wall: Manifesting the Narrative

While walls may induce narrative creating elements through potential patterns, the colour walls are decorated is one of the most pivotal elements to creating a room’s character. General pragmatism about wall colouring concurs, lighter colours and shades make a room feel more open and airy. Accordingly, darker colours and shades play into a room feeling more condensed and intimate in its environment. 

Ceilings: Showing History

Completing the totality and airiness of a room, a ceiling and its height help designate the vastness of a room. While a ceiling accomplishes these elements, typically the significance of these components is examined for the zeitgeist they give away. Therefore, ceilings show a room’s legacy and reveal further context to the era of the space. Consequently, knowledge of this allows designers and viewers to distinguish the anachronistic characteristics of the current contemporary. 

Window: Communicative Interface

Windows help in the process of brightening up a space and making it feel more open. While this is typically the key concept synonymous with windows; they further orchestrate a communicative interface uniting interior and exterior, providing interaction and views. Dissecting a window for its offerings in this manner, help a designer actualize the finest placements to utilize them. In a sense, they can be conceptualized as a real-life picture frame added to the interior of a room that showcases an exterior extravaganza. 

Basics of Interior Design: Interior Design Principles

Balance: Juggling Objects

Balance, creating the feeling of equilibrium. This objective of balance is achieved through properly approximating the visual weight each object in a room carries. Visual weight is most objectively created through object shape. Additionally to this component, colour, pattern, and texture also play a role in creating a room’s balance. Identifiably, there are three main different types of balance. The most common is symmetrical (formal), typically a balanced style reserved for traditional or formal spaces. This is identifiable when a room can be split into sides that mirror one another in terms of visual weight. This prototypical approach to balance can become monotonous and banal when not executed to a high standard. Be sparing and make sure to utilize the key focal points of a room to negate this problem. Not exactly contrary to symmetrical as the name would suggest, asymmetrical (informal) still attempts to balance visual weights but through unconventional manners instead of direct duplication. If executed correctly, it can lead to visually polarizing interiors that seemingly work. This approach, for instance, could attempt to balance a large sectional on one half with a strikingly colourful ornament on the other side. The last balancing style is considered radial. As suggested by the name, there is a central focal point with items positioned circularly around the focal object. The quintessential example is a room with chairs focused around a central table. 

Symmetrical

Asymmetrical

Radial

Rhythm: Getting into the Grove 

Rhythm like a well-choreographed song prioritizes generating patterns of repetition and/or contrast in an attempt to spark visual intrigue. As a designer, you can emulate this by using the same colour or shape at varying intervals. The intention of creating rhythm is to move the observer’s eyes around the room. For a starting point, try picking a colour and repeating it through different objects in the same room. Eventually, when the technique is built, you can try replicating this through repeating objects, shapes, or even abstractly through analogously emotive objects. 

Harmony: the Message

In dance, when the song, dancers, and lighting are all in sync, watchers realize the intended message of the performance in astonishment. Creating a room that has harmony utilizes all its elements to create a unified message. To achieve harmony, you must correctly apply the other 4 design elements. If harmony is attained you have successfully incorporated all the basic design principles into your interior.

Emphasis: what are you Looking at

In a room with objects of equal significance, people will feel uncertain about where to place their attention. This is why a room needs to incorporate an anchor piece. Having points of interest help users establish a commonplace to situate their attention. Anchor points incorporate tangible, psychological, symbolic, and semantic elements to comprise phenomenological stances. The fireplace is a typical built-in anchor to a room. Its properties are unique, they have varied over the generations and nowadays functions not only as a source of heating but furthermore as a source for relaxation and coziness.

Proportion and Scale: Find the Gold 

Proportion is the ratio of one part in context to another; scale is how the size of one object relates to another or to the space in which it is placed. Theoretically, humans have determined optimal proportional distances through the formula of the Golden Ratio. This occurs when the two objects’ ratio is the same as the ratio of their sum to the larger of the two quantities. From this proportion, you can then scale accordingly following this formula’s parameters to achieve the most natural-looking results.

This is a big project to say the least. Here is a list of the current upgrades that have been completed on the project:

Bridges and roadways

• Completed life cycle rehabilitation and widening of the Memorial Drive, Bow River, and Bow Trail bridges
• Added a northbound and southbound traffic lane on Crowchild Trail between Memorial Drive and Bow Trail
• Added a northbound traffic lane on Crowchild Trail between Memorial Drive and 5 Avenue N.W.

On and off ramps

• From westbound Bow Trail & westbound 10 Avenue S.W. to northbound Crowchild Trail: moved on-ramps to right side of Crowchild Trail
• From northbound Crowchild Trail to eastbound Bow Trail: added a merge lane to the off-ramp
• From northbound Crowchild Trail to eastbound Memorial Drive: moved the off-ramp to the north side of eastbound Memorial Drive

Pathways and crossings

• Along the east side of Crowchild Trail from Kensington Road along the north side of Memorial Drive: added a pathway, connecting to the pedestrian overpass at 21 Street N.W.
• Parkdale Boulevard and Kensington Road intersection: added a signalized pedestrian crossing to connect to the Bow River Pathway Network

Medium and long-term plans are still in the works, and will be implemented after 2027; long-term plans are not expected before the next 30 years. Before these plans can take place, the city must acquire private land, and receive funding. According to the City of Calgary, “The next step is to bring the plans forward as a candidate project for the Investing in Mobility Capital Plan.” (City of Calgary). The Investing in Mobility Capital Plan “is a strategic plan that defines the priority and timing of capital transportation infrastructure projects for the next 10 years and helps to inform Council’s capital budget decisions. If it is determined to include the projects within the medium- and long-term plans as part of the Investing in Mobility Capital Plan, the projects will then be prioritized in one of the four infrastructure categories. Projects are prioritized based on key directional and policy documents like the Calgary Transportation Plan and Action Plan. Once prioritized, funding sources will be identified and allocated.”

As part of developing the short, medium, and long term plans, the City of Calgary completed s six-phase study in order to address any concerns relating to the project, and formulate solutions. With input from the citizen’s of the city, the following three goals were created for all three levels of plans for the area:

• “Maintain and enhance bordering communities”
• “Improve travel along the corridor”
• “Improve mobility across the corridor” (City of Calgary)

The City spoke with residents and businesses that live/are located in and around the Crowchild Trail in order to gain feedback. This information was used to impact the technical work and any decisions needed for the three phases of the project. If you would like to see a summary of these discussions and the outcomes you can visit this page on the Government of Calgary’s website.

The cost of the medium-term project is estimated to be approximately $1.3 billion (Class 4 estimate range in 2016 dollars), while the long-term estimate is approximately $250 million (Class 4 estimate range in 2016 dollars). (City of Calgary). Each cost estimate includes all recommendations. These include things such as infrastructure, walking/cycling connections, noise attenuation, green spaces, transportation measures, transit, and land acquisition. (City of Calgary) 

If you would like to learn more about the Crowchild Trail upgrades, visit the City of Calgary website. There you can also refer to maps and before and after photos relating to the project.

Types of Property Ownership in Alberta 

1. Sole Owner 

Only one person has possession of the property. If they pass away, their Will or the  “Intestate Succession Act” would be used to determine who has right to the property. 

2. Joint Tenancy 

This is commonly referred to in a situation where spouses own a property together. If one partner was to pass away, the other would automatically get their share of the property. The process of transferring ownership is much more simple in joint tenancy than in tenancy in common. 

3. Tenancy In Common 

Unlike joint tenancy where each owner has an equal share, in this type of ownership each owner owns a share of the property – equal or unequal. This is common for situations where unmarried couples, investment partners, or friends decide to purchase a property together. 

This type of ownership allows partners to split their shares by different percentages. Here are some examples: 

• Equal Investments (50% ownership per investor) 
• One main purchaser with a parent to co-sign (99% ownership, 1% for the co-signer)
• Unequal investments (67% to owner #1, 33% to owner #2)

In this type of ownership, it is possible for a share to be held by more than one entity. This is called Joint Tenants. Married couples can “jointly” own 50% as tenants in common while a business partner owns the other 50%. In this case, if one person included in the Joint Tenant agreement were to pass away, the other would get the entire 50% share. 

In order to transfer ownership, it is required for the joint tenants to sell the property together in agreement. On the other hand, tenants in common are allowed to sell their share of the property without permission from the other tenant. 

This process would require a Transfer of Land document to be signed by the shareholder in order to authorize the land to be transferred under a new owner’s name. The new owner must sign a part of the form to acknowledge the market value of the land at the time of the sale. The document is then registered at the Land Titles Office. 

Who Does Your Estate Go To If You Die Without a Will? 

In Alberta, if a person dies and they do not have a will to determine who will get rights to their possessions, their estate automatically falls into what is called intestacy. The Wills and Succession Act is used to determine how a deceased person’s estate will be distributed in care of an intestacy. While the rules are made in hopes to acknowledge the wishes of most people, it can be quite a complicated process and sometimes result in unfair situations. 

As of January 1st, 2020, the new Family Property Act of Alberta grants people in common law relationships the same protection as married couples. This reflects our changing society and definition of relationships. The province of Alberta now refers to “common-law” relationships as “Adult Interdependent Partners” (AIPs). 

If a person dies and has no children, but does have a spouse/AIP, their estate goes to their spouse/AIP. When a person dies and has children with their spouse/AIP, their estate goes to their spouse/AIP. When a person dies, has children, and a spouse/AIP, but the children are not with the spouse/AIP, then the surviving spouse/AIP can receive a preferential share in an amount of 50% of the estate and the other 50% goes to the children. 

If a person dies and has children, but no surviving spouse/AIP, each child will receive equal distributions of the estate. When the children are already deceased but have children of their own, the predeceased child’s portion will go to their children equally. 

If a person dies and has no children and no surviving spouse/AIP, the estate is distributed to the intestates parents. 

When a person dies, has no children, no surviving spouse/AIP, and no surviving parents, the estate is distributed equally to any siblings of the intestate. 

If a person dies, has no children, no surviving spouse/AIP, no surviving parents, and no surviving siblings, then the estate will be distributed equally among maternal and paternal grandparents or their descendants. 

For further details on wills, estates, transfer of ownership, it is best to refer to a professional legal counsel. 

Why Do People Buy Fixer Uppers?

Many people can see fixer-uppers as an ideal way to enter a hotter seller’s market due to fixer-uppers generally having a lower market value then the houses around them. They can make living in your dream neighborhood more attainable for many people. The lower price comes at a cost however, as most have major cosmetic or potentially structural shortcomings that are not always evident at the time of purchase.

Another major draw of purchasing a fixer-upper is the potential to flip the home for profit. This has been made popular by many renovation TV shows, and there are countless others who flip homes for a living. The premise is that you would purchase a home significantly under market value due to mainly cosmetic challenges, and then renovate it up to modern day standards, significantly improving the home’s market value and putting it on par with other homes in the neighborhood. Then, you would be able to sell the home for a profit. Flipping homes in this way has the potential to act as a way to invest in the real estate market for some, but it is not without risk.

Purchasing a fixer-upper home also allows you to customize the home how you like as you would have additional capital on hand due to the lower purchase price of the home. Adding a walk-in closet, additional storage space, or a custom chef’s kitchen are all possibilities when doing a complete renovation, and can significantly improve the market value of the home. 

Risks Of Fixer Uppers

Fixer-uppers can also be notorious for taking large amounts of capital to bring them up to modern standards, both cosmetically and structurally. Often they are sold “as-is” and may even require skipping a home inspection as they are perceived as being such a good deal by many people. Renovations in any home can uncover issues that were not expected going into the project, such as electrical not to code, or even asbestos as is the case with predominantly older homes. These types of issues can drain the bank account very quickly, but must be completed in order to live in or sell the home due to safety concerns. Completing any renovations on a fixer-upper can not only be costly, but can take a lot of your time as well.

To complete the project without going over budget, often the new home owners will contribute some “sweat equity” into the project, and DIY some of it themself, barring any projects left to the experts such as wiring or structural repairs. This would be additional time spent on top of the standard time spent designing the new spaces, picking materials and colours, and hiring contractors. This time can be minimized if an interior designer is hired, but at a monetary cost. 

Our First Recommendation

Obviously fixer-uppers can carry a lot of risk with them, but that does not deter everyone due to their potential. So, how can you avoid these risks and make the most out of your investment? The first thing we recommend when looking at purchasing a fixer-upper is consulting with an experienced real estate agent. They will be able to give you an accurate idea of what the market value for both the neighborhood you’re looking at is, as well as the fixer-upper itself. As you will be pouring capital into the project after you have purchased the home, it is critical that you do not overpay on any property.

A seasoned Realtor® will often have connections with builders/contractors in the area, and could recommend some trusted people that they have worked with in the past for you. It is important to have someone you can trust and have a strong track record renovate your home as a lot can be on the line. You are also able to interview multiple Realtors® in the area to see if they have any experience in the areas you want to purchase in, or with fixer-uppers in general. 

Our Second Recommendation

Our second recommendation for purchasing a fixer-upper is to only buy contingent on the results of a home inspection as structural repairs can drain a lot of capital very quickly. If this is not possible, going in knowing that there could be major expenses not uncovered yet and being prepared is a good idea. Based on the age of the home and any visually accessible structural issues (such as a large crack in a basement foundation wall), your real estate agent should also be able to help give you an idea of the types of expenses you could stumble across during the renovations.  

Another thing to keep in mind when deciding if a fixer-upper is worth it for you, is to properly define the scope of work that would need to be carried out for the project. This can help give you some semblance of the final cost of the project, and also give an idea of what the final value of the property would be. Perhaps you are only looking for a home that needs a fresh coat of paint and some kitchen/bathroom renos to bring it up to the current century. Or, you may be more adventurous and be looking to completely gut and redesign a home. It is important to understand how far you are willing to go, and then look at homes that would accommodate those renovation scopes accordingly. 

Final Thoughts

Fixer-uppers can be intimidating to some, but can allow people to purchase a home in their ideal neighborhood that they may not have been able to afford otherwise. With the correct experts, such as an experienced real estate agent, in place, the project can have a lower risk to it, and more chance of it turning out for the buyer’s benefit. If you have questions about what it would look like to purchase a fixer-upper in Calgary and would like to speak to a Realtor® with 17+ years of experience, please reach out to us today. We would be happy to help you with any of your real estate needs. 

Home Renovations: Deck

While a deck might not be located inside, it can add around 80% of it’s cost to the resale value of the home. Adding a deck to a home is also a more ‘friendly’ renovation to complete if you are residing in the home at the time, as all of the construction work would take place outside. Decks can take many shapes and sizes, but are a key thing buyers can look for when choosing a property. As well, they can add great value to the homeowner as they allow for increased use of the outdoor areas. Another easy add-on to a deck would be to add a firepit. While there are some by-law constraints to having a fire pit within the city, it can have great use on chilly fall days.

Decks, on average, cost between $3,000 to $8,000 to build depending on the size and material used. If you have some building experience, they can also make a great DIY project! One key thing to know is that while decks add resale value to your home, pools do not. Once you factor in all of the maintenance fees you are unlikely to make your money back, but they can add a lot of value to the current homeowner. 

Home Renovations: Painting

Painting either the interior or exterior of your home also recoups 100% or more of the cost in resale value, and breathes fresh life into the building. This renovation is fairly inexpensive and averages around $0.50 to $3.50 per square foot for the interior of a home. This can vary depending on the cost of the contractor (or if you DIY it!) and the quality of the material used. Adding a new coat of paint can make the home feel fresh and new, which is attractive to buyers. We recommend choosing warm neutral colours, such as beiges or tans. Choosing the right colour is important, as you could actually turn away buyers if you pick something too intense, like fluorescent green or pink. Choosing paint colour strategically can also help a small room feel larger if you chose a lighter colour. Lighter colours also photograph well. 

Home Renovations: Curb Appeal

Another easy home renovation that can add a lot or resale value is minor changes to the exterior of your home. This is known as “curb appeal” for your home. Having a nice looking exterior can create a good first impression for home buyers and can cause them to pay more for the home. Curb appeal renovations can be anything from replacing old siding, to repainting your front door to make it pop more, depending on the amount of money you are willing to spend. Landscaping can also increase the resale value of your home. A well planned out and maintained landscaping project can increase the value of your home by 10 to 20%. Choosing a reputable landscaper and designer can help you make sure your plans will be well received by any future buyer. 

Home Renovations: Kitchen/Bathroom

Kitchen and bathroom renovations also have the potential to increase the sale value of your home. However, in order to make back most/all of your money that you invested into the project, we recommend that you make a smaller scale renovation, mostly focusing on easy aesthetic changes. If you were to replace all of the appliances, counters, and hardware it would be difficult to make back your investment in the sale of your home. Instead, try just replacing the hardware, or updating the sink or repainting/refinishing the cabinetry. 

These four types of renovations are of course not the only ones that will increase the resale value of your home, but are the most common. If you have additional questions or would like advice on contractors or how to renovate your home, please feel free to reach out to us. We would be happy to help you with any of your real estate needs.