As realtors we are often asked what a renovation is worth and what the return on investment will be. These are great questions and require careful consideration whether you want to realize money upon sale or if you just want to enjoy the renovation while you live there. If you are going to stay in a home for 5 years, we feel it is worthwhile renovating areas of the home you plan to enjoy. The renovations add value and a better quality of life for you and your family.
It is important to be mindful of the value of your home and the value of the renovation planned. You do not want to over spend or over renovate.
You can expect a 75% return on a kitchen renovation provided the renovation stays within 7-10% of the value of the home. A bathroom will deliver an 85% return on a 2-5% value of the home. The higher end of the percentage quoted should be considered for higher end homes. As you get into higher price points, buyers expect more luxurious finishes and appliances.
Adding a bathroom or converting a two-piece ensuite to a three-piece increases the value of your home and the number of people that can live there. Most buyers are looking for an ensuite nowadays. In the lower to mid-range price point, an ensuite is a huge selling feature. If you are competing with homes that have a master ensuite, a buyer may pass on your home.
Income suites are desirable but not in all price points. Many luxury homes do not wish to have rental income or tenants but they may want a suite for an elderly relative or a nanny. At the lower to mid-range price point, a suite is more desirable. Many first time home buyers, young families or buyers moving up the property ladder require the suite to assist with mortgage payments.
Paint can make a huge impact on your home, especially when you are getting ready to list. Light and airy neutral colours are what buyers crave. Bright, bold colours can make a room appear dark and small. If you are not sure what to chose, we have a few favourites that we know buyers love. Call us!
Wondering about flooring? Buyers love hardwood and stone. Light neutral colours are on point now. With so many choices it can get confusing. Make sure to bring a sample home so you can see how it looks in your space and take note of any pink, yellow or green undertones. Not sure about wide plank or narrow or herringbone. Call us!
Increasing energy efficiency can increase the value of your home. Often times the value is hidden or not aesthetically appreciated as the efficiency is in the form of a new hot water tank or furnace. Double paned windows, air tight exterior doors and new appliances can also improve efficiency and are visible. Buyers like all these things. With new mechanical components, your home will be viewed as well cared for and favourable as there won’t be surprise purchases down the road for the buyer. Don’t forget to service regularly or replace the mechanical components before they fail so buyers know the components have been well cared for and have not past their shelf life.
It is not always necessary to rip everything out and start from scratch. If you are going to enjoy it for years to come, then go for it. If you need to dress it up to sell, check with us first before you spend a lot of money.
If you are thinking about renovating, we would love to help you make the most of your return on investment. We know which colours, finishes, features and appliance packages to use for your price point and area to make your home as desirable as possible to future or potential buyers. Maybe you want to make the most of your home for your family to enjoy, we’d love to help with that too! Call us 604.561.9802