The Smartest Home Renovations to Maximize Your ROI.
Living in a pandemic environment has altered how Canadians view renovations: more than half of Canadians renovated their homes in the past year, according to the RE/MAX 2021 Renovation Investment Report. Only 16% of homeowners specifically renovated to raise their home’s value, but nearly 60% said they still took the return on investment into account.
Bringing your home up to date and making it competitive in the hot real estate market can often necessitate an investment when preparing it for sale. You might not be aware of your home’s flaws, especially if you’ve lived there for a while. Here, we look at the best home improvements to ensure your return on investment.
In 18 of the 31 housing markets studied by RE/MAX, including Toronto, painting was ranked as one of the top three renovations for return on investment. Painting is probably the most underrated home improvement. With little work and a low initial investment, it offers a high return. You can paint your house yourself, and it’s a very simple way to update it and hide wall blemishes. A house that appears and feels brand new as a result.
Think about hiring a professional painter before listing your house. Choose a painter who can assist in choosing the proper color scheme, skimming the walls, sealing the trim, and repairing minor damage before applying premium paint that is appropriate for each surface (matte for living areas, egg shell or semi-gloss for trims and doors, and proper ceiling paint). (Although it may not seem like the most glamorous renovation or promise the most dramatic before-and-after photos, it can give your home a fresh feel and make it look better than you could have ever imagined. Similar to how you should dress for your body type, a color expert can help you choose the ideal hues to complement your home’s lighting and make it look its best.
Return on Investment: The average return on an investment for new paint is 60%.
Numbers: Set aside money for a 2,000 sq. -ft. $10,001 to $15,001 for a house.
Nothing “sinks” a sale price faster than a house that is absorbing water when considering a profitable renovation. Realizing a home’s potential value requires checking the condition of the roof, windows, gutters, and drains, as well as the foundation, particularly in this market where homes with “good bones” are selling for high prices. Think about investing in vinyl windows, a new roof, or even waterproofing the foundation. Buyers are aware of structural problems, so demonstrating to them that a homeowner has done their research and made the necessary investments to prevent flooding and leaks will go a long way toward winning their trust (and their offer!).
ROI: Depending on the scope of the renovation, improvements that will save homeowners money over the long run will yield a higher return, around 75%.
By the Numbers:.
For a 2,000 square foot home, brand-new, high-quality vinyl windows are required. -ft. residence: about $15,000.
Costs for removing the old roof and replacing it with high-quality asphalt shingles range from $8,000 to $10,000.
The cost of properly waterproofing a foundation’s exterior is roughly $60–$80 per linear foot.
Doors & hardware.
New interior doors and hardware, a front door replacement and quality lockset, baseboard, door trim, crown mouldings, and wainscoting are a few examples of relatively cheap and non-invasive improvements that can instantly boost a home’s appeal. But what matters most is the finish’s quality. Now is not the time to cut corners on quality control or labor. Employ someone you know and trust, or ask friends who you know have similar standards for recommendations.
ROI: Smaller projects that lack the “wow” factor and might even go unnoticed during an open house generate a smaller return, about 50% of your initial investment.
By the Numbers:.
Front door made of solid wood with a premium lockset costs $2,500.
Interior doors with solid core cost $250 each.
In 27 of the 31 housing markets in the RE/MAX study, kitchen renovations like new countertops are among the top three renovations with the highest return on investment. Consider a quick countertop refresh and appliance swap as options for a great return on investment because kitchen renovations can quickly spiral out of control. Expect to pay around $3,000 for a quality stone, such as granite or quartz, as opposed to more than $25-50,000, and between $5-10,000 for a set of high-end slide-in or standalone kitchen appliances with a professional-looking material, such as stainless steel. To finish the kitchen makeover, replace your cabinets or give your old cabinetry a fresh coat of paint while you’re at it.
ROI: Kitchen renovations typically generate returns of between 75% and 100%, making them the most profitable.
A bathroom remodel is one of the best improvements to make before listing a home because it has a high return on investment and is something that most buyers look for in a house. It was one of the top three renovations for return on investment in 17 housing markets, including both Toronto and Vancouver, according to the RE/MAX study.
One opulent room added to a house can have a significant impact and pay off. Highlight features like a frameless glass shower enclosure, a marble-topped vanity, or a stunning tile backsplash. Consider your bathroom’s advantages and disadvantages, and then ask yourself, “Where is my eye drawn when I enter this room?” Is the bathtub, the vanity, or a window the focal point? This is where your renovations should start.
ROI: When done well, bathroom renovations have a return of 62 percent.
By the Numbers: Budgets vary, but most often run from $5,000 to $15,000.
The hardest-wearing component of any house is the flooring, so for many homeowners, it’s imperative to replace worn-out flooring. In 14 of the housing markets studied by RE/MAX, new flooring ranked among the top three renovations in terms of return on investment. Therefore, it makes sense to consider the flooring you step on and to spend money on high-quality materials and installations.
Installation quality is very important. Expensive hardwood floors can look terrible if they are lifting or have gaps between the planks, but cheap laminate from a big-box retailer can look fantastic when it is installed properly. However, installing carpet is rarely a wise decision, especially if you intend to sell. Carpet tends to lovingly hold on to memories of previous homeowners, memories that buyers would sooner forget, even though some people love the warmth and feel of carpeting in a bedroom or basement. Avoid including carpeting and avoid paying for cleaning or, worse, complete removal.
ROI: Depending on the type of flooring you select, your investment will typically return 100–150 percent of what you invested.
By the Numbers:.
A typical hardwood floor costs $4 to $6 per square foot plus a $2 per square foot installation fee.
Laminate flooring prices typically range from $1 to $3 per square foot plus $1.50 for installation.
Even if you don’t plan to sell your house anytime soon, making improvements that have a high return on investment pays off. You can live more comfortably and worry-free knowing that if the time comes to sell, you will be in a better position in the seller’s market by updating various areas of your home.