A couple months ago, we looked at simple ways to improve the curb appeal of a house you're trying to sell, and then we discussed some easy ways to spruce up the interior for sale as well.
But we get a lot of questions from readers about whether there is a secret list of renovations that truly pay off when it comes to upping the resale value of your home. Well it's no secret, but there is definitely a list and though some of these will double up on my earlier advice, feel free to use this top ten list as a guide for future reno planning!
1) Painting
I've said it before, but it bears saying again: if there is one thing you do before putting your house on the market, do this. A new coat of paint does wonders for the look of your home and can increase your resale value by as much as 300%, according to realtors. Now that' return on investment.
2) Kitchen Renovations
Kitchens sell homes, so it makes sense that sprucing yours up will help you sell faster. Just remember to keep your budget in check, as kitchen renos can easily go sky-high price-wise. Also, remember to keep the price of the renovation comiserate with your asking price. There is no point in adding a 70 thousand dollar kitchen to a house worth only three times that amount, for example. Real estate agents say that a kitchen reno, done right, can add as much as 120% to the value of your home.
3) Bathroom Additions
This one's easy: If your home only has one bath (or 1.5) and has more than one person, you can always benefit by adding a second full one. These renos can run up a tab as well, but you should see a payback of up to 130% when you sell.
4) Bathroom Remodeling
It's not so fun to think about, but the fact of the matter is that we spend a lot of time in the bathroom! It should come as no surprise, then, that making the room more comfortable and stylish can add appeal to your home. Realtors claim that a well-done reno of the main bathroom can increase your resale value by up to 120%.
5) Finishing the Basement or Attic
These are not projects for the lighthearted to take on, but they can be very rewarding if done properly. By finishing a basement or attic, you can add up to 30% more square footage of living space without having to build any extensions to the home. The downside is that these renovations are cumbersome, costly and only add 80 to 90% to the home's value on average.
6) Window and Door Replacement
Nothing scares prospective buyers away faster than old, ratty looking windows that are drafty and generally in disrepair. Putting in new windows and doors can give the whole house a facelift and convey to visitors that your home has been well cared for. Payback should range between 50 to 90% on this investment.
7) Deck Improvement or Addition
There is not much you can do outside renovations-wise to significantly improve the value of your home. Building or adding to your deck is the one exception, a project that can add up to 90% to your home's resale value.
8) Adding Rooms
Adding on to your house can be extremely difficult and expensive, but square footage is always king. You'll need to balance the cost of the reno versus the value that the extra space will bring. These projects can add as little as 30% to your home's value, or as high as 80 if they're done correctly.
9) Improving Home Office Space
With more and more people working from home, the home office has become a new home-selling space. A well-designed room with plenty of outlets, calm colours and other office-specific improvements can really help prospective buyers envision the space. Payback can be as high as 70% for this type of reno.
10) Energy Efficient Retrofits
When it comes to renovating to save money on power consumption, you should always be wary that you're not making all the capital outlay... only to save the next owner thousands of dollars on heat and hydro. Some improvements like quality insulation and energy efficient furnaces will add value right away. Others, like photovoltaics, take a long time to pay for themselves, and may not appeal to all homebuyers either. Tread this road with caution, unless the reasoning for your renovations is to be Green as in Earth-friendliness, not Green as in rich!
If you found this list helpful, why not email it to a friend, or save it to your browser's favourites so you can come back to it later? We hope to see you back here soon!
0 comments
Post a Comment