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Renovating your home is a great opportunity to increase the value of it. Also, you get to enjoy the new renovations while you’re still living in it. Home renovations usually cost around $20,000 but that can be turned into a much higher value if you were to sell it. It’s a great investment and there are quite a few options to renovate for much less while still increasing the value of the property.
There are certain renovations that can offer more value than others. If you’re selling your home, you will want to know what renovation efforts are going to be worth the most to potential home buyers. Some renos may be expensive without adding that much value, causing you to sell at a loss.
We’ll walk you through the factors to consider when it comes to home renovations.
You want to consider what renovations will offer a high return of investment (ROI). Whatever money is spent on the renovation should offer a major increase in the home’s value. That’s the rule of thumb. Your ROI will depend on economic trends, the value of homes in your area, the quality of the renovation, and the kind of renovation done.
Here are some important contributing factors:
When you choose to do a renovation that improves the structure or layout of your home, it’s very valuable and offers a high ROI than other pricy projects. Practical fixes that give your home additional value includes putting in an air conditioning system, renovating the kitchen, and installing more cost-efficient heating. Something we wouldn’t add to this list is installing an in-ground pool. It’s expensive and not going to be impressive to all potential buyers.
Consistently profitable renovations include a new wooden deck in your yard, bathroom and kitchen remodeling, and replacing windows.
If you have a neighbourhood that is desirable, the major renovations you do can increase interest even further. That doesn’t always mean that buyers are going to pay more than the average cost of a home in your area. Buyers are likely interested in your area because of the average price range. If you put too much money into your home, you may not be competitive in the market as people could pay less for a home that they can improve how they want to.
In the end, you may not be able to sell it at the price you want because nobody is willing to buy it. Make sure you know what conditions and prices are in your area. You can usually ask your mortgage broker to access whether your renovation ideas are going to be worth your time and money.
Here are our top home improvements we would recommend that will add value to your home in the current market:
The outside of the home is the first thing a buyer will see when they pull up. Incorporating stone veneer in front of your house makes it look more inviting, and more expensive. It creates the story that the home is well taken care of and offers an excellent first impression.
If you’re able to add addition to your property, you can expect an excellent return. As many people are building additions to increase value of their property, it’s something you’ll want to consider in order to compete in the marketplace.
Creating an open concept is going to give your home more light and is a huge selling feature. It makes areas of the home connected to an open-living space feel bigger. It creates a wow effect for potential buyers walking into your home. There are a lot of people working remotely from home and they want an inspiring workspace. If you’re able to change up the layout of your home with an open-living space, it increases in value.
In this modern age, nobody wants to move into a home with carpet in every room. It doesn’t feel clean and it’s difficult to maintain. If you want to add value to your home, have hardwood flooring installed. You’re sure to get the money back on your investment and can make a much quicker sale. You can get an ROI of up to 150% for updating your flooring to hardwood floors throughout.
Kitchen renovations are always going to increase the value of your home. It is the kitchen that usually tells someone how dated the rest of the house is. It’s an important space for people to cook and come together. For home buyers, a remodelled kitchen is usually a part of their criteria. Kitchen upgrades include refinishing cabinets and buying new appliances. It’s often an expensive renovation but most buyers will experience a high ROI.
Potential buyers want to buy a home that looks great but also functions well. When they see that new vinyl windows have been installed, they have the peace of mind that the home is energy-efficient. It adds an incredible amount of value to have new windows installed so the new owners don’t have to do it. Not only is your home going to be more energy-efficient, new windows also make the home look more refined.
If you have an unfinished basement, renovating it can go a long way. You create more living space and each square foot of finished space adds more value to your home. In some cases, your buyers are looking for a space they can convert into a rental unit. You can decide what you want to create with the space but at any rate, a finished basement is going to seriously increase the value of your home and buyer interest.
This is a smaller renovation, but it offers a high ROI on your investment. A new garage door costs a few thousand dollars but can dramatically increase your curb appeal. It’s not a big job that takes over your whole house either so it’s an excellent option to impress potential buyers right when they pull into the driveway.
Depending on your budget and how much your home has the potential to sell for, you can pick renovations from our list of ideas. You want to make sure all factors have been dissected before renovating. The point of these home renovations is to increase the value of your home beyond the costs of the renovation itself.
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