Do you want to make minor changes to improve a room? Do you want to get into big projects? It’s important to know how renovations can affect the value of your property, especially if you are considering selling it in the near future.
Since most renovations are done to resolve a problem or improve the quality of life, many assume de facto that they also increase the selling price of a property. This is often true, but it’s important to note that this is not always the case.
According to the Appraisal Institute of Canada, “If the value of your house exceeds the average market value of your neighborhood, your renovations will not have a great monetary impact. However, if the value of your home is below average, you can recover more of the renovation costs. ” However, certain changes to a home are more likely to generate an attractive financial return.
Renovations in the kitchen often give you a better return on investment when compared to any other room in the house. The most important thing is to carefully calculate your budget and take into consideration the average price of homes in your area. In this way, you make sure that you don’t exclude yourself from the market if you choose to sell. A kitchen modernization often yields a 75% to 100% return on investment.
The majority of homeowners prefer their bathrooms with a soothing color palette, modern design, and high-end materials and finishes. Bathroom renovations generally also give a return on investment ranging from 75% to 100%. Sublime this bathroom is’nt it?
Income suite renovations can double your investment if done right. For example, you can fit out an apartment in the basement, in the attic, convert a room into a loft, or fit out a coach home style suite in the garage. A suite adds significant value to your home. In addition, it can help you earn money while you build.
Hardwood is the number one type of flooring requested by potential homeowners. Hardwood has a high-end look, it’s classic and in addition to being extremely durable. Before making the purchase, be sure to research the different types of coatings available in the market. That way you can get more for your money.
Replacing an old front door with a new high-quality one can often pay off more than 70% of your investment and significantly improve the exterior appearance of the front of your property. It’s the same things if you replace your garage door. Here’s an example of a fairly simple repair, but one that can be very successful.
Homes that are up to date and maintained are always selling faster and often at a higher price. A very simple way to update the look of a home is to update the fixtures and hardware. So it’s time to update the faucets, sinks, toilets, cabinet hardware, door handles, light fixtures, etc. Small hardware renovations can improve the overall appearance of a room. Besides, making only this type of small investment can result in a big return.
Do you want to renovate? Take inspiration from one of the properties we sold, the one featured in the original article on the Sotherby’s site, a stunning house in Outremont, completely renovated by Dorem Leanor, a high-end real estate developer.
*This article is adapted from Best Renovations for Return on Investment.