How many other people look around their home and make that mental list of things to be done? Whether it’s a fantasy list (for me: an inground pool), or an actual “this needs to be done” list (backyard landscaping), I think we all have ‘em. But what are your reasons behind your renovation list? Is it just for your own personal needs or wants? Or is it to increase the value of your home? A little of both? My husband intends to stay in our home for many, many years (I would like to move as I think our house is too big and therefore renovations are costlier. I don’t even want to think about the fact that we’ll need a new roof in the near future) so our main reason for renovating, certainly the cosmetic renos, are just for our personal reasons. However, if you’re looking to increase the value of your home, here are a few helpful suggestions to help you get the best return on your investment (ROI). According to the Appraisal Institute of Canada (AIC) homeowners should follow these 4 general tips when renovating:
1. Choose improvements with long life expectancy
These are the boring yet expensive jobs that you generally don’t brag about on Facebook. A new roof, a new furnace, stuff like that. These improvements can offer immediate and future savings. For instance, replacing all the windows in your home could cost $10,000+, but the AIC estimates that this reno will provide a return on investment (ROI) between 50-75%. Not too shabby. Since outdated/improperly working windows and doors can contribute significantly to a home’s energy loss, repairing/replacing will provide immediate savings as well as add value to your home. Now, that’s a smart reno.
2. Invest in modern updates, particularly in high traffic areas
The kitchen and bathrooms are key areas that hold their value if the finishes are updated and neutral. However, an entire renovation isn’t always required. Kitchen cabinets can easily be updated by resurfacing the doors and changing the hardware. You can also modernize your kitchen by changing the countertop and replacing lighting and plumbing fixtures.However, if your kitchen or bathroom layout just doesn’t work or your cabinets are beyond the point of resurfacing, it may be time to consider a full renovation. According to the AIC, you can expect a 75% to 100% ROI on a major kitchen remodel. But you may have to sell a kidney or two to afford it.Either way, after the renovation, consider selling your old fixtures, cupboards, counters etc. on an online buy and sell group. I love varagesale.com. This way, it can help offset (even by just a little) the enormous costs that can be associated with a kitchen reno.
3. Don’t overlook (or underestimate) the more inexpensive remodel jobs
The ROI for a fresh coat of paint is up to 165%—the best ROI of any home improvement. Other smaller remodel updates that don’t break the bank include replacing the front door, updating the home’s lighting fixtures, and adding (or rejuvenating) landscaping. Removing carpet and installing hardwood also goes a long way to increasing your home’s appeal to potential buyers.
4. Consider energy efficiency
According to a variety of appraisal sources, energy efficient renovations are considered to have one of the highest paybacks, relative to cost. It’s the way of the future!
If you’re thinking of remodeling and want the name of a contractor, painter, interior designer or just want some advice, don’t hesitate to contact us!