Top renovations to increase your home’s value

So, you’re thinking of selling and are wondering what you can do to make your home more appealing to buyers? Do you update your kitchen, finish the basement or replace the roof? With so many options, it can be difficult to make a decision. Let’s take a look at some of the ways in which you can add value to your home.

 

A Home Improvement Survey conducted by Royal LePage listed a number of improvements that could add up to 12.5% to the value of your home. That’s up to $60,000 for a home valued at $500,000. While this is certainly not the case for all home improvements, the survey claims that the top renovations with the best potential increase in home value are kitchens, bathrooms and basements, followed by eco-friendly upgrades (like new windows) and basement suites.

 

Similarly, the Appraisal Institute of Canada (AIC) recommends that updating or renovating kitchens and bathrooms – to a level of quality consistent for the area you live in – can provide the highest returns on investment. Interestingly however, they also suggest that simpler more affordable options like painting, updating your décor and even just decluttering can also add value. Great ideas if you’re in a hurry and on a limited budget.

 

The AIC also mentions two additional opportunities often overlooked when it comes to adding value:

 

Enjoyment Value: Renovations like sun rooms, decks, fencing and landscaping increase your home’s usage and enjoyment value even though they may not always provide a significant return on investment.

 

Maintaining Value: Nothing could be more heartbreaking than having just spent your hard-earned money on a renovation only to see it all evaporate because the roof or something else needs replacing. Periodic updates and ongoing maintenance of your roof, doors and windows, heating, and electrical can help preserve your home’s value at sale.

 

So, with the above in mind, it’s time to start planning. Perhaps a new counter top in the kitchen along with stainless steel appliances, new bathroom fixtures, a fresh coat of paint or a completely renovated basement? Whatever you decide to do, keep the following in mind:

 

Why are you renovating? Are you planning a move and/or looking get some enjoyment out of your property? This should help you decide where you want to add value (and how much).

 

Stick to your budget! Buyers often compare your home to similar homes on the market. Expensive renovations run the risk of only being partly recouped when they sell – particularly where comparable homes with similar renovations are priced more competitively.

 

Don’t go crazy! Your home should stand out for the right reasons. The last thing you want to do is limit your home’s appeal by being too different. Renovations should match your home’s style and be of comparable quality to similar homes in the area.

 

Deciding to renovate your home can be exciting exercise. If you’re planning to sell, definitely talk to a Realtor® and get a comparative market analysis for your home. Find out what you’re up against and plan your renovations accordingly.

 

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