"We Are The Generation Of Renovation"
Ask any friend and I bet you my lunch that almost all of them have either done or will be doing a renovation. Last week we talked about one of the hottest and most visually significant renovations, the kitchen. But did you know there are many other areas of the home that bring a similar or higher ROI than the kitchen and most cost much less? These improvements may not seem like the best investment because they are not immediately aesthetically eye catching, however these areas real estate agents and buyers are paying close attention to, and could put your home at an advantage over your neighbours and bring you more money when offers start coming in. Did you know that a fresh coat of paint brings the highest return on investment and is one of the cheapest and easiest to do? Renovate smart and you will see a return on your investment when it comes time to sell!
#1. Choose improvements with long life expectancy
These are the less-than-sexy remodel jobs, such as new roofing (every 15 to 25 years for asphalt tile), a new furnace (every 10 to 15 years), or a new A/C unit (every 10 to 15 years). These improvements can offer savings in the year of renovation and in the years to come. For instance, replacing all the windows in your home could cost $10,000 or more, but the AIC estimates that this renovation will provide a return on investment (ROI) between 50% and 75%. Since outdated or improperly working windows and doors are major contributors to a home’s energy loss—up to 20% by some estimates—repairing or replacing these features will provide immediate savings and will add value to your home. Now, that’s a smart reno!
#2. Don’t overlook (or underestimate) the more inexpensive remodel jobs
The return on investment for a fresh coat of paint is up to 165%—the best ROI of any home improvement. Other smaller remodel updates that don’t break the bank include replacing the front door, updating the home’s lighting fixtures, and adding (or rejuvenating) landscaping. Inexpensive remodel jobs aren’t isolated to a few fixtures, either. Removing carpet and installing hardwood goes a long way to increasing your home’s appeal to potential buyers and according to the AIC, the ROI on floor upgrades ranges from 50% to 75%. That means if you spend $5,000 redoing your floors, you can expect to recoup anywhere from $2,500 to $3,800 of your costs.
#3. Consider energy efficiency
According to a variety of appraisal sources, energy efficient renovations are considered to have one of the highest paybacks, relative to cost. A great snapshot of the cost and ROI of some home renovation projects can be found on the U.S.-based remodeling magazine website. Remember, this is a U.S. magazine, so prices will be dramatically different in Canada, but it’s a great snapshot of how home renovations range in cost and the ROI you can expect.
If you're planning on doing a renovation anytime soon, feel free to contact us to get a professional opinion on how it will affect your home value!
