Are Your Renovations Really Increasing the Value of Your Home?

Are your Renovations Really Increasing the Value of Your Home?

When considering a home upgrade or reno there are 2 very important things to evaluate:

#1. Value to you

Enhancing your home with a renovation may offer more than money can provide. A beautiful outdoor living area to entertain on, a finished basement for the children to play, or that dream bathroom to help you unwind, all may contribute to a quality of life that only a home can build.

#2. Return on Investment – Resale Recovery

Despite what the trendy home flipping television programs show, not all home renovations or upgrades will give you a large return on investment. Infact, more so than not, most home renovations give you very little return on your investment. Very rarely does a $10,000 home renovation get you a $20,000 return. When considering a home renovation or upgrade for resale purposes, keep all costs in check and splurge only on the necessities.

Return-on-Investment Renovations Chart

Some renovations can seem more promising than others regarding your return on investment. In a buyers market, certain home upgrades are necessary to get top value for your home and to move quickly.

The following information is a range of the 20 most popular renovation improvements identified by a survey of the Appraisal Institue of Canada. The goal of the survey was to determine, in the informed opinion of Canada’s professional real property valuers, what effect home improvement projects have on the value of home resale.

Please note: Home values and returns on renovation investments are dependent on so many factors such as the location of the property, i.e. rural/urban, the neighbourhood and notably important is the quality of workmanship and materials.

Renovation

Resale Recovery

Basement Renovation

50 – 75%

Bathroom Renovation

75 – 100%

Install Central Air

25 – 75%

Recreation Room

50 – 75%

Adding a Fireplace

50 – 75%

Flooring Upgrade

50 – 75%

Furnace / Heating Upgrade

50 – 80%

Kitchen Renovation

75 – 100%

Landscaping

25 – 50%

Exterior Paint

50 – 100%

Interior Paint

50 – 100 %

Adding a Swimming Pool

10 – 40%

Window / Door Replacement

50 – 75%

Roof Shingle Replacement

50 – 80%

Build a Deck

50 – 75%

Construct a Garage

50 – 75%

Build a Fence

25 – 50%

Install a Skylight

0 – 25%

Interlocking Driveway

25 – 50%

Asphalt Paving

20 – 50%



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