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Your home is the biggest expense you may ever have, but the largest source of potential for increased resale value. We will show you what are the best home renovation option for your home. It can be surprising how many of your dollars will come back to you, if you spend them in the right place. Here’s a list of the best places to invest your dollars in your home for increased worth.
Moderate Investment- Siding- Buyers are quick to make a judgment on a home from the sidewalk, without even stepping inside the front door. A freshly painted, resided house can speak volumes on the quality and attractiveness of the home. A durable vinyl siding will cost you about $6000-$13,000 for a typical two-story home. If you want to get really fancy and upgrade for wood or stucco, you’re talking in the $14,000-$20,000 range, but every penny counts towards that great first impression and increased value.
Expected Return – 80%
Large Investment- Windows- For homeowners, the words ‘new windows’ are not a favorable. New windows mean ‘expensive’, ‘mess’, and ‘work’, but to buyers, new windows are a treat. A big tick off the ‘must have’ list for a new home, recently installed windows are favorable to buyers as they save them a large expense upfront, plus energy efficient windows will allow them to save on utility bills. Yes, they may be expensive to pay for, but give it a year or two to melt off the cost, and come resale time, it will provide an advantage for everyone, including your wallet.
Expected Return – 60-90%
Kitchen & Bathroom
Moderate Investment- Appliances and Fixtures
There’s nothing like a new fridge, a contemporary kitchen sink, or a spanking new shower to enjoy. Modern, well-maintained appliances and fixtures are a big catch with resale value. They appeal to buyers who want move-in-ready homes with little worry about replacing the oven or bathroom toilets. Important: when purchasing fixtures, think energy efficient brands. As a seller, you may qualify for tax breaks on certain products, saving you more money.
Expected Return: 60%
Large Investment – Renovations
A total kitchen or bathroom remodel is a task not for the faint of heart, but done right, the renovation will completely pay itself off and then some. The beauty of such renovations is that no matter how little you invest, you are guaranteed return value, whether it just be new counters and some fresh paint on the cabinets, or a total regut. The areas in the home where people spend the most time – are the most valuable. The better they look and function, the more dollar value they retain.
Tip: For a kitchen, a general guideline is to assign 5% of your home’s value towards the reno budget
Expected Return- Kitchen/ Bathroom Reno – 100-120%
Ceiling and Roof
Moderate Investment- Esthetic Updates
A popcorn ceiling screams outdated. A coat of paint up top and some elegant crown molding is just enough to catch a buyer’s eye and complete the look. Don’t get too personal with your paints, however. Keep them neutral. Stage your home with colour and textured accessories to showcase your home’s true potential through rugs, lamps and pictures.
Expected Return – 50-100%
Large Investment – Roof
This can be a hard one to nail. A large expense and undertaking as it is, redoing your roof and then selling up too soon can limit your ability to earn back your investment. It will take some time to pay off your new shingles, so sell your home when you have recovered financially and are no longer paying it off, maybe after a year or two. Fix any minor roof damages without a full replacement if you can, but don’t let it get to the point of frequent repairs, which will contribute to a decrease in resale value. Similar to the kitchen scenario, a newer, highly priced commodity is always in the buyer’s interests.
Expected Return – 80%
Best Home Renovations – Final Words of Advice:
- Buy Energy Efficient – Opting for energy saving appliances, fixtures and upgrades will appeal to buyers and shave dollars off of your utilities monthly!
- Stick With Neutral Tones – A raging red master bedroom might say ‘passion’ to you, but to someone else with different tastes, it may be an eyesore. Best to keep things open-minded and basic.
- Make Use of Space For Potential – Take advantage of that extra space under the staircase and turn it into a study spot, or that convenient alcove into a snug reading area. Present every nook and cranny of your home as a space that is useful, and most importantly, valuable.
- Invest In Swimming Pools – A swimming pool will only garner you 30% in return value. Not everyone enjoys a pool and the maintenance that comes with having one, especially if the pool is older. Your backyard oasis is not an addition all buyers are looking for.
- High-End Appliances or Tubs – Often underused and costly to run, large tubs are favorable to a minority of buyers. Instead, invest in a good-quality shower. As for your chef-quality kitchen appliances, they can clash with less to-date parts of the house, like the shaggy carpet in the basement.
- Exceed Your Neighborhood Price Bracket – Buyers flock to areas within their price range. Adding too many additions and extras to your home to amp up the price may backfire if your property exceeds the average in the area. Your home will stick out and seem overpriced in comparison. Try to stay within the bracket of your neighborhood.
These insights on best home renovations to increase a value of your house were kindly shared by TheRedPin, a full service real estate brokerage that carries the largest database of residential listings in the Greater Toronto Area. TheRedPin allows you to receive custom listings straight to your inbox.