Whether you’re considering minor renovations to update a room, or a full-scale renovation of your entire home, it’s important to be aware of how renovations might affect your property value, especially if you’re thinking of selling.
Since most renovations resolve an issue or improve quality of life, many people automatically assume that they also increase a property’s sale price. That’s often true— but it’s not always the case. According to the Appraisal Institute of Canada, “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.” That being said, there are certain changes to a home that are more likely to yield a financial return on investment. Top renovations that have the most potential for a financial return on investment include:
Kitchen renovations often give you the best return on investment compared to any other room in the house. Remember to calculate your budget and to take into consideration the average house price in your area to make sure that you aren’t pricing yourself out of the market should you choose to sell. Painting the cupboards, changing the countertop or backsplash-A kitchen upgrade often yields a 75% to 100% return on investment.
The majority of people prefer bathrooms with a soothing colour palette and modern design with chic materials and finishes. The current color trend is black and white with gold fixtures-an easy fix would be changing the sink cabinet-it can totally transform the space to make it look more on trend. Bathroom renovations typically yield a 75% to 100% return on investment.
Income suite renovations, such as a basement apartment, an attic, a loft conversion, or a coach house style suite in a garage, when done correctly, can often double your investment. An income suite adds a significant amount of value to your home, and it can help you make money while you build. This renovation can typically yield high returns, especially for first time home buyers that may need the extra income.
Hardwood floors are the number one requested type of flooring by prospective homeowners. Hardwood looks fantastic, it is classic and super durable. Make sure you do a lot of research on the different types available on the market so that you get the most bang for your buck. This renovation can be timely and costly but will make a big impact!
Replacing an older front door with a new, high-quality one can often pay back over 70% on your investment and it greatly improves curb appeal. The same thing applies for a new garage door replacement. If you are worried about cost, you may also decide to add a fresh coat of paint to the front door and or garage door to freshen up the look and to update your home. You may even want to try a bold color like red!
Hardware & Fixtures
Homes that are fresh and updated always sell faster and often at a higher price. A very simple way to modernize the look of a home is to update things like faucets, sinks, toilets, cabinet hardware, doorknobs etc. Hardware updates can improve the entire feel of a room and a small investment can equal a big return. Light fixtures are also very important as they can often set a mood or a certain look to finish off the space.
It’s always a good idea to maintain the exterior of your home-remember, first impressions are everything! There are more costly things like redoing the roof, deck or planting trees to less expensive things like planting a few flowers or raking leaves, it all will help with increasing your home’s value!
Whether You Are Considering Selling Or Leasing A Home Or Condo, Alex Irish & Associates offer an unparalleled level of service, discretion and marketing regardless of price point or locale.