Planning Your Renovations For The Best Return On Investment
Aug 30, 2018
Aug 30, 2018
Every renovation will impact the property’s value differently, and if you’re selling in the near future you’ll want to have a good understanding of average property values in your area. According to the Appraisal Institute of Canada, “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
Certain changes to a home are more likely to yield a financial return on investment, so you’ll want to choose wisely.
Here are the top renovations which have the most potential for a financial return on investment:
Kitchen renovations often give you the best return on investment compared to any other room in the house. Remember to carefully calculate your budget and to take into consideration the average house price in your area to make sure that you aren’t pricing yourself out of the market should you choose to sell. A kitchen upgrade often yields a 75% to 100% return on investment.
The majority of people prefer bathrooms with a soothing colour palette and modern design with chic materials and finishes. Bathroom renovations typically yield a 75 to 100% return on investment.
Income suite renovations, such as a basement apartment, an attic or loft conversion or even a coach house style suite in a garage, when done correctly, can often double your investment. An income suite adds a significant amount of value to your home and it can help you make money to help put towards the mortgage.
Hardwood floors are the number one requested type of flooring by prospective homeowners. Hardwood looks fantastic, is classic and is highly durable. Make sure to do lots of research so that you get the right type of hardwood for your home at the best value.
Replacing an older front door with a new, high quality one can often pay back over 70% on your investment and it greatly improves curb appeal. The same thing applies for a new garage door replacement.
Homes that are fresh and updated always sell faster and often at a higher price. A very simple way to modernize the look of a home is to update things like faucets, sinks, toilets, cabinet hardware, door knobs, light fixtures and so on. Hardware updates can improve the entire feel of a room and a small investment can equal a big return.
The right renovations can help you not only improve the look and functionality of your home, but pay for themselves. If you’re getting ready to sell and want to talk about what renovations would be best for your home in Vancouver, we’d love to chat more.