Top 5 home renovations that will bring the biggest return on your investment in 2019.
According to the Appraisal Institute of Canada, the top five home renovation projects that will add the most value to your home are things that are outside of current market conditions that you can directly influence and improve.
These types of renovations are proven to increase the resale value of your home, so whether it’s a complete overhaul or cosmetic touch-ups, these are the top reno’s to focus on. Ultimately, you want to keep in mind what today’s home buyers are looking for when deciding on which areas of your home bring the most value.
With a 75 to 100 per cent return on investment, a complete kitchen overhaul is often worth the price to entice buyers. However, it is not always necessary to gut the kitchen entirely when you’re looking to increase your home’s value. Upgrades such as granite countertops, stainless steel appliances, new fixtures, lighting or other minor aesthetic changes can go a long way. As CIBC Lending Division states, the results you can achieve from kitchen renovations make them the most popular and beneficial home renovation investments.
Similar to the kitchen, the bathrooms in your home also offer maximum return on your investment. Even if you don’t want to replace the tub and shower in their entirety, a new state-of-the-art showerhead, faucets, and other small improvements really make a difference in the long run.
With flooring you can count on a payback of approximately 50 to 75 percent when you replace old or outdated floor coverings. Replacing aging hardwood and tile or installing new carpet or laminate can give your home a polished feel.
According to homelight.com hardwood flooring remains the top choice for home buyers in today’s market. The National Wood Flooring Association, recently reported that 99% of real estate agents say homes with hardwood are easier to sell, with 90% saying they sell for more money.
Also, the National Association of Realtors found that 54% of buyers were willing to pay
more for homes decked out in hardwood. And although many buyers would be relieved to find hardwood over carpeting, not all hardwood floors are equal, with the current trend gearing towards wood floors in rustic-chic applications.
Here are some things to think about when it comes to flooring:
- Keep your flooring consistent – no matter what it is.
- Hard surfaces are better than carpeting.
- If carpet must stay, keep it in the bedroom.
- Don’t let different floor types meet in high-traffic areas.
This is one of the easiest and most cost-effective ways to visibly add value to your home. Simply exchange old and out-dated fixtures with new ones. Items like bathroom and kitchen faucets, cabinet handles and light switches are low cost and can quickly improve the quality and appearance of your home. Updating your lighting fixtures can also make a dramatic improvement, creating a more welcoming and inviting environment.
Always consider the added value of new energy-efficient products when upgrading.. As CIBC Lending states, whether you’re thinking about new energy-efficient windows, a new furnace, or solar panels on your roof, energy upgrades are a hot trend in home building and renovations, and typically bring with them at least a 50 to 75 percent return upon resale.
There is an excellent article about the value of adding an addition to your home, written by The Reno Pros in Toronto. In it, they state that putting an addition on your house is one of the most involved and expensive renovations that a homeowner can commit to. While it’s important to understand the scope of such a project, the magnitude alone should not be enough to discourage you from going forward. There are many excellent reasons to build an addition – and adding value to your home is one of the biggest.
For example, If you don’t have a large master bedroom with an ensuite for example, adding one can positively affect the price tag of your home when it comes time to sell. If resale value is one of your main concerns, it is a good idea to consult with a real estate agent who is familiar with your neighbourhood. They will be able to give you advice on what type of home additions bring in the highest prices from home buyers.
Did you find this article helpful? If so, please let us know in the comments below. Also, if you have other tips on adding value to your home before selling, we’d love to hear from you!