For the majority of people, a family home is the biggest investment they will make in their lifetime. As with any investment, you want to see the value of your home grow over time. Inflation and the increased demand for housing from rising populations will account for sizeable returns to property values. However, a well-planned home renovation will likely result in a much quicker increase to your home’s value. Where renovations differ from other investments is the added benefit of creating a more pleasant living space for you and your family. If the goal of your home renovation is to increase the value of your home, you will want to focus on the ROI offered by different types of renovations. Not all renovations are created equal.
The biggest factor in determining the return on your home renovation investment dollars will be based on which aspects of your home are in dire need of an upgrade. Focus on the essentials before the aesthetics. Nobody cares how nice your master bath is if your roof is leaking. With that said, here we take a look at five of the best home renovations for increasing your home’s value.
1. A fresh coat of paint
One of the quickest solutions for breathing new life into any old or drab room is to slap on a fresh coat of paint. You can either hire a professional contractor or throw on your painter’s whites and hammer out this project over a weekend.
For simple spaces all you will need is:
- Paint and primer
- Brushes and rollers
- Painters tape
- Water bucket
- Step Ladder
- Screwdriver (for taking off outlets)
There are many tutorials online on how to properly paint different areas of your home. However, for more advanced projects we suggest calling in the professionals.
2. Upgrading your bathrooms
A run-down or outdated bathroom is immediately noticeable to prospective buyers touring your home. Luckily, there are multiple renovations that will give your bathroom an updated and fresh feel. Remodeling Magazine documented in their 2018 Cost vs. Value Report that bathroom updates result in an average of a 70.1 per cent return on investment. The most valuable renovations are replacing fixtures, backsplashes, and countertops, or installing a tub and/or a water-efficient toilet.
3. Cleaning up the kitchen
The kitchen is the heart and soul of the household. It is where you cook, entertain, and spend quality time with your family. A well-done kitchen adds a tremendous amount of value to any property. The amount spent on a kitchen renovation will vary greatly depending on the extent of the project. You could easily spend tens of thousands of dollars to remodel your entire kitchen, but for those looking for an easier update, we suggest re-doing your cabinets. This relatively cheap and simple project is immediately noticeable and will give your kitchen a brand-new facade. Much of the value found in kitchen makeovers come from their appearance, therefore it is important to consult a contractor or decorator before undergoing construction.
4. Giving your home a facelift
The first impression your house makes on visitors is based on how it looks from the street, also known as street appeal. Renovations such as landscaping or installing manufactured stone veneer are used to help make sure potential buyers are not put off by the look of your house. Another popular route used to boost street appeal is to install new garage doors. The 2018 Cost vs. Value Report found that new garage doors on average lead to a 98.3 per cent ROI.
5. Updating your windows and doors
As windows and doors age, they tend to break down and begin to let in drafts. Updating your windows and doors allows you to update the look of your house, while also cutting down on your heating bills. Many homebuyers will look at the installation date for windows to ensure they will not need replacing in the near future. If you are looking to put your home up for sale, you can expect a 75-100 per cent return on replacing your windows and doors before listing.
Whether you are looking to increase the value of your property before listing, or just want to update worn-out features of your home, pre-planning and making smart renovation choices are crucial to maximize the value gained from your investment. I’ve worked with plenty of contractors throughout my career, and can provide recommendations based on the size and budget of your renovation.
If you’re considering a home renovation and need to finance it through your mortgage, give me a call at (705) 333-4338 or get in touch with me here!