HGTV's Scott McGillivray wants Canadians to take these steps before selling their homes
Daily Hive caught up with HGTV star and real estate investing expert Scott McGillivray to get some of his insights and tips on investing and selling in today’s tough market.
You may recognize McGillivray from several hit shows, including Buyers Bootcamp and Income Property, but he’s also making big moves in the investment space.
Most recently, he announced a first-of-its-kind partnership with addy, a Canadian real estate tech company. The partnership allows Canadians to easily invest in the Scott McGillivray Real Estate Trust II, using addy’s software to manage and raise capital for investment opportunities.
It’s no secret that Canada’s real estate market has been volatile for a while. Aside from the usual summertime slowdown, the much anticipated June Bank of Canada (BoC) rate cut hasn’t exactly made a tangible difference for the housing market.
According to a recent report from Royal LePage, Canadians continue to sit “on the fence, taking their time with their real estate purchase decisions.”
But if you’re thinking of putting your home on the market anytime soon, there are some important steps to take before doing so.
Here’s what McGillivray advised.
Research and planning are key
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No matter where you’re at in your real estate journey, McGillivray said that creating a strategic plan “from the acquisition to the cash flow” is essential.
“Whether you’re a homeowner or a real estate investor or a passive investor, understanding how to best capitalize on each one of those transactional moments is going to determine whether or not you succeed in terms of profitability in the space,” he told Daily Hive.
Research is key for those looking to buy. McGillivray said this involves looking at multiple properties, understanding the ins and outs of being a professional buyer, and negotiating the right deals.
Unfortunately, it currently isn’t exactly a buyers’ market.
Royal Lepage’s June report found that last month’s interest rate cut didn’t lead to a noticeable increase in home transactions, suggesting that more cuts to the policy interest rate and improved economic conditions may be needed before there is a materially greater number of homebuyers.
However, things make a shift as we head into fall.
Recent US inflation data is strengthening some hopes that Canada may see another rate cut on July 24.
The US Consumer Price Index (US) indicated that inflation slowed to 3% in June. Experts say this could lead to rate cuts in the States and increase the chances for a cut in Canada’s next announcement.
According to Penelope Graham, a mortgage expert at Ratehub.ca, these numbers give Canada’s central bank “further reassurance that inflation is trending in the right direction.”
Planning on selling?
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If you’re planning to put your home on the market, McGillivray emphasized the importance of making upgrades that add value but don’t go “over the top.”
Instead, it’s about making upgrades that can offer the best investment return.
That often means paying attention to the curb appeal of the property you’re trying to sell.
McGillivray stressed that “everything from the front door to the hardware to the landscape design” makes a big difference to potential buyers.
The interior shouldn’t be “over-personalized,” so it’s best to avoid bright colours and special finishing.
“It’s about having a clean slate and staying with a lot of neutrals… and definitely showcasing that the maintenance has been taken care of,” he said.
Small upgrades—like installing new appliances and light fixtures—can also significantly improve a home’s sellability.
Another point to keep in mind is that buyers are much more savvy with their knowledge about home quality.
“They’re doing their due diligence and [getting] homes inspected,” noted McGillivray.
He advised that before putting your home on the market, make sure that all of its maintenance is up to date.
What about renovating?
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Maybe you bought a fixer-upper that you want to renovate. While that can be a huge project, McGillivray has extensive experience in the space and a few tips to make the process easier.
The first thing to remember when renovating is that things may not go exactly according to your schedule.
“Prices and labour can change very quickly, so you need to be flexible with your timelines,” he said.
“Spend more time preparing, and don’t jump the gun when it comes to renovations.”
That might mean spending a bit more money to hire a professional to help with coming up with a renovation plan and executing it.
McGillivray added that as interest rates come down, the demand for purchasing properties will go up.
“I think we’re in a bit of a fluctuating, stable, or slowly reducing rate space [and] it’s probably going to be a good time to start considering what might be a good investment in your property, whose going to do it, and who will be planning it out.”
With files from Kenneth Chan and Imaan Sheikh