Which Renovations will give you the highest Return on Investment?
Tuesday Nov 02nd, 2021
will I get my money back?
I know many people wonder whether they will ever recoup money put in to get a house ready to sell. As a homeowner who’s spent over $75,000 doing just that I wondered too.
As a Realtor, Stager, and Interior Decorator I am very careful about ensuring that any money I spend on renovations is worth spending.
In the case of renovation we spent our budget on updating the envelope of the house; the windows, painting walls, updating flooring, finishing the basement to provide more usable space. Then we spent it on the two items home buyers look at most when buying: the kitchen and bathrooms.
I added some sparkle with wallpaper and tiled backsplash and new quartz countertops.
What does the Appraisal Institute say ?
I recently came across an article from the Appraisal Institute of Canada that spoke to exactly this topic – what is the value of your renovations?
Here’s a link to the article: https://www.aicanada.ca/wp-content/uploads/AIC-How-to-Value-Your-Renovations-web.pdf
Basically, they outline the top renovations that will give you the biggest bang for your buck.
Which renovations give the best return?
These include the kitchen, bathroom, repainting both interior and exterior, and updating décor items like lighting, faucets, door handles, and knobs.
One interesting factor that is always top of my list for any staging advice is to de-clutter. This is free and will definitely help you out when you are moving.
What about renovating and staying in the house?
The article goes on to talk about the top 5 renovations that will give you the highest enjoyment value. These include finishing the basement, upgrades to the garage, adding on a sunroom or addition, fencing, decks, and landscaping.
Other items that really are worth spending money on include the envelope of the house – it’s vital to ensure that you are supporting the structure of the home. This can include replacing the roof, windows, updating the electrical (panel, wiring, sockets, fixtures), updating the heating and cooling systems and repairing any structural defects.
Buyers don’t want to purchase a home and then have to go to the trouble of replacing the windows or roof. In a negotiation a buyer will estimate the costs of replacing roofs and windows much higher than they really cost. If you aren’t in a position to replace these items and you know they will need to be done, then I recommend you get some quotes and have them ready for when that discussion will take place.
Looking for advice on which changes to make to your home?
If you live in Mississauga, Oakville, Burlington, or Milton and are thinking of moving soon and wonder which renovations you’d like to do please give me a call on 647 215-7407. I’d be happy to discuss this with you.