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 sell your home.
What is the Best ROI Home Renovation?
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.
I’ve helped many clients maximize their home sales through renovations. Check out this example: Everson Village Home Renovation: How I added $85K in Market Value
What is the Second-Best ROI Home Renovation?
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.
I could talk home renos all day every day. In fact, I have a 6-part blog series all about renovating your home. Check them out in order here:
- Part 1: Home Renovation Overview
- Part 2: Planning Out the Renovation
- Part 3: How to Create a Floor Plan
- Part 4: How to Create Your Reno To-Do List
- Part 5: What’s Your Budget?
- Part 6: How to Get a Building Permit
Other High-ROI Home Renovations
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’ve heard so many people moan about the expense of new windows until they see and feel the difference. Not only do they affect the curb appeal, but they are often more energy efficient, 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.
Did you know the City of Toronto offers several Home Renovation Rebate Programs?
Interior Vs. Exterior Renovations
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 have the potential to increase the value of your home on average by 10 percent.
What Home Renovation Has the Worst ROI?
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.
What about home additions? Learn more about them with these posts next:
Should You Renovate or Not?
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 the 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 to sell. 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!
For more on this, read: Should I Renovate Before I Sell My House?
My Personal Experience (and an Offer for you!)
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 who 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 Home’s Value With a $25,000 Interest Free Loan.
If you have any questions about renovating your home before selling it, or if you’re toying with the idea yourself, give me a call or shoot me a text message. I’m always happy to chat!
Edwards, Meghan. “Planning a home improvement project? A kitchen renovation can increase your home’s value by 20%, according to Royal LePage experts.” Real Estate News. Royal Lepage Canada’s Real Estate Company. North Strategic, TORONTO, May 5, 2022.
