Hello all you Real Estate lovers! There has been much discussion on the climate of the current real estate market, but today’s blog we are going in a different direction. We’re going to discuss the potential value that certain home renovations can bring to your home! I promise, in the next blog entry I will give you an update on what the heck is going on in our crazy market but for now, please have a read about renovations and the value those updates can bring when it comes time to selling your home.
After a group of 340 real estate professionals across the country were surveyed, it was discovered that a kitchen renovation is the home improvement project that will bring in the most value. It was estimated that on average, a kitchen update can increase the value of the home by 20 percent. This makes sense considering the kitchen is one of the most frequented rooms in the house and naturally people put a lot of weight on the kitchen when viewing a home.
Can you guess what came in second place? If you said washroom, you nailed it. It was estimated that a bathroom renovation has the potential to increase the value of the home by 16 percent. If you can find the budget to get those washrooms updated before you put your home on the market, DO IT! You will not regret it.
Next on the list of upgrades that can potentially increase the value of your property is a finished basement (which came in third) or a basement apartment (which came in fourth) that has the potential for rental income. This on average was said to increase home value by 15 percent.
Let’s talk about windows! I’v heard so many people moan about the expense of new windows until they see and feel the difference. Not only do they effect the curb appeal, they are often more energy efficient, and smoother and easier to use. New windows have the potential of increasing a home sale by 13 percent and believe it or not something as simple as fresh interior paint can bring in an extra 12 percent, on average.
When this same group of experts were asked where homeowners should invest their renovation budget, 87 percent suggested interior renovations. This is not to say that your exterior should be ignored! Outdoor entertainment areas and fresh landscaping has the potential to increase your home on average by 10 percent.
And last but not least, the renovation (that is a big ticket price) that brings in the least amount of value to homeowners looking to cash in their property is…drumroll please…a pool! According to the experts surveyed, a pool can add an additional 6 percent on average to the sale price.
Did you know that since the pandemic started, 59 percent of surveyed experts reported that sellers have been less likely to renovate their homes due to temperature of the market at the time leaning heavily to a seller’s market and another 57 percent of sellers chose not to simply because of increases in costs of labour and materials.
With that being said, depending on the amount of budget you put into a home renovation, you do have the opportunity to cash in on it when it comes time for selling. The key is making the right choices! I encourage you to crunch some numbers based on updates, your home value and see what makes sense for you. If you have any questions about what to do and where to start or don’t have the budget, we can help!
When I look back at the homes I have sold over the years, they for the most part align with these results. It’s amazing the additional value you can bring to your property if you are able to budget for renovations. If you are looking to sell your home and want to make some updates but are struggling to find the budget, I offer a $25,000 interest free loan if you choose to sell your home with me. As an agent (and someone that has renovated two homes from the ground up), I know what type of value we can bring which is why I have made this offer to my clients. For more information, check out my blog called “Maximize Your Homes Value With a $25,000 Interest Free Loan” and give me a call at 416-728-5401 for more information.
