If you’re planning to sell your home one day, you’ve probably thought a lot about resale value. A good renovation can dramatically increase your resale value, but not all home improvement projects are worth the investment. Some renos can provide a strong return on investment, provided the project is carefully planned and carried out by experienced renovation contractors.
Here are some renovations that can bolster your resale value with an impressive return on investment.
Kitchen and Bathroom Renovations (Highest ROI Projects)
If you’re trying to boost the value of your home with a renovation, the best place to start is the kitchen and bathrooms. Unlike bedrooms, which are designed to be more private spaces, kitchens and bathrooms are public spaces. With a variety of appliances, cabinetry, fixtures and design features, looks go a long way.
The Appraisal Institute of Canada places kitchen and bathroom renos at the top of their top five list for highest return on investment. RE/MAX Canada also put kitchen and bathrooms in their top three renovations, with their data estimating the average kitchen reno garners a 75-100% return on investment, while the average bathroom reno returns around 60%.
Before you get started with planning, talk with your renovation contractor about your budget and expectations, which will guide the decision-making. For the kitchen, it’s your countertops, sink, cabinetry and seating area that will move the resale needle the furthest. The bathroom has a little less going on, which means a statement bathtub, beautiful new shower tile or a modern vanity will go a long way. In some cases, increasing the size of these spaces can add value as well.
Energy-Efficient Upgrades That Increase Home Value
Upgrading the heating and cooling system in your home or adding solar panels are sure to increase the value of your home. Anything that will save the next buyer money is worth it in the long run.
Heat pumps are highly sought after these days because they’re significantly more efficient than a furnace, baseboards, or any other system. They cost less to operate monthly and produce fewer emissions. They’re definitely the ‘greener’ option, plus they’re much safer to keep in the home since they carry low risk of fire, explosion and no risk of carbon monoxide poisoning. And with rebates available from the government, upgrading to a heat pump is a smart long-term investment.
Heat pumps aren’t the only heating and cooling upgrade worth investing in. You can also upgrade with a high-efficiency furnace, central air conditioning, and smart thermostats that can adjust temperatures by room.
Solar panels are another significant investment that can pay off when you sell your home to the right buyer. Usually, it takes several years to see a return with solar. But environmentally-conscious buyers will be highly attracted to a solar-powered home. The monthly savings on energy bills are extremely attractive, along with the fact that solar panels are generally low maintenance.
Home Additions That Boost Resale Value
Building an addition onto an existing home is a significant upgrade with big resale upside. Multi-generational living is on the rise in Canada and especially prevalent in BC, where the housing market is more expensive. As such, homes become more desirable with more capacity. Here are some home additions to consider with your builder:
- Bedrooms & Bathrooms. One of the best home additions for maximizing return on investment is adding bedrooms and bathrooms. Having space for more humans has a direct impact on the price tag.
- Garage Conversion. If you have just one garage, it’s probably best to leave it as is. But if you have an extra one, consider converting it to more living space like a home gym, movie theatre or office. The trick is making the space feel like it isn’t a converted garage.
- Kitchen Bump-Out. Expand the size of your kitchen or dining area with a kitchen bump-out, a high-return project that allows for more storage, a dining nook or a beautiful new island.
- Basement. If your basement is unfinished, you could be leaving money on the table. A full basement renovation is a significant undertaking that can produce a great return with the right buyer – especially if it’s a legal suite that’s ready for renters.
Flooring Upgrades That Improve Resale Appeal
Flooring is a major upgrade that can easily provide a return on your investment and boost the resale value. Especially in an older home, flooring will wear out from years’ worth of foot traffic. And if your home is carpeted, it has to go. Even if a prospective home buyer likes the idea of carpets, they won’t like someone else’s, which will have attracted buildup over the years.
Your best bet is to go with either hardwood, tile, or laminate flooring. It’s hard to beat the classic look and feel of authentic hardwood flooring. Laminate is a solid option as well at around half the price. No matter which route you choose, you can expect a strong return on your investment with an investment in new flooring.
Interior Painting: The Most Cost-Effective Value Booster
A fresh coat of paint is one of the easiest and most cost-effective ways to boost the value of your home and give it a clean new look. It’s the unsung hero of home improvement. After years of sun exposure, the colours will start to fade while collecting blemishes, scrapes and holes. And with kids or pets, the paint damage could be far worse.
When it comes to the colour of the paint you choose, white is the undeniable favourite for renovations and new builds everywhere. While less exciting, it’s hard to beat the versatility of white, along with its ability to brighten a room and make it appear larger. But that doesn’t mean you can’t get creative. Adding a little style won’t hurt – try matte finishes, semi-gloss, distinct trims and doors, but you will want to avoid painting your walls black or red. Prospective home buyers will be looking for a cohesive look, or at least an intentional one.
Outdoor Improvements That Increase Property Value
Especially in a mild climate like we enjoy on Vancouver Island, adding a new outdoor feature on your property could be a game-changer for prospective buyers. Features like decks, fire pits and terraces provide extra living space in the warmer months. Even something like a new fence can create a big visual improvement at a relatively lower cost compared to other major upgrades.
One upgrade to stay away from for purely resale reasons is the inground pool. Everyone loves the idea of having a pool in their backyard, but the cost of maintenance hits hard. And removing a pool is an expensive endeavor. While you and your family might get great value out of a pool, some prospective buyers may be scared off.
If you’re considering a renovation and want to maximize your return on investment, contact Horizon Pacific Contracting to discuss your goals. Our experienced renovation contractors can help you prioritize upgrades that deliver real value now and when you are ready to sell.
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