Whether you’re looking to make improvements to your home to sell or to make your home more livable and enjoyable, making sure that you get a return on your renovation investment might have differing strategies. Still, it is always worth maximizing your investment when and where you can.
“If you plan to stay in your home for five years or more, invest what you can afford for the look and upgrades you want. If you’re planning to sell, take a different approach. Focus on getting back the maximum return on your investment,” says Brett Martin of House Beautiful.
Get a Home Inspection to Locate Any Potential Issues
It doesn’t matter how stunning your kitchen is if your foundation is cracked and leaking. Buyers won’t be motivated to move on your property—no matter how beautiful it looks—if there are major structural issues to consider.
“It is always best to take a good look at the building envelope first (foundation, exterior walls and roof). These are the things that protect whatever money you spend on the inside.” Trent Bauman, Owner / Project Manager / Designer
Don’t spend on major facelifts in your home until you’re sure the bones are in good shape.
Invest in Basic Home Maintenance Before Cosmetic Remodels
It may not be as exciting as a brand new kitchen or bathroom but siding replacements recoup more on your investment than a major kitchen or bathroom remodel.
According to Remodeling Magazine, siding replacement (in the US) saw a 92.8% recoup on costs while replacing roofs and windows returned 80% or more at resale.
“Buyers are wise to structural issues, and learning that a homeowner has done their homework and made the proper investments to prevent flooding and leaks will go a long way in a buyer’s eyes (and offer!),” according to RE/MAX.
When looking at the “bones” of your home, the RE/MAX 2021 Renovation Investment Report recommends prioritizing the following:
- Roof
- Windows
- Gutters and drains
- Foundation
These renovations will pay off: according to RE/MAX, “Renovations that will save homeowners money in the long run will draw a higher return, around 75 percent, depending on the scale of the reno.”
Cosmetic Renovations
Don’t be disappointed if you were really hoping for a kitchen reno: while you’re less likely to recoup your investment with a major kitchen renovation, minor kitchen renovations fared much better, returning at 92.9%, so consider some smaller updates.
In addition to ensuring the structural integrity of your home, the RE/MAX 2021 Renovation Investment Report outlines some areas to consider to ensure your return on investment, such as:
- Paint – A fresh coat of paint typically garners a 60% return on your investment.
- Doors & Hardware – Smaller projects that have less of a “wow” factor, and may even go unnoticed in an open house, draw a smaller return, around 50% of your initial investment.
- Countertops – Kitchen renovations have the best return on investment, typically garnering a 75-100% return.
- Flooring – Depending on the flooring you choose, the return is generally 100-150% of your investment.
Curb Appeal
You want to bring potential buyers into your home, so make sure they’re not turned away by the appearance of the outside of your home.
“Even a little goes a long way in terms of renovating or refreshing the curb appeal of your home. I always recommend buyers drive by a house before booking a viewing, to get a feel for the neighbourhood. You want your home to look as inviting as possible on that first visit, or in your listing photos. The less work a potential buyer needs to do, inside AND out, is going to put your home at the top of their list,” says realtor Jen Zeigler, with RE/MAX Solid Gold Realty (II) LTD in Waterloo Region.
Thankfully the basic maintenance updates like windows, roofing, gutters, drains, and siding keep your home’s exterior looking fresh and well cared for.
“When you want to sell your house for the best possible price, you need to grab the attention of the potential buyer quickly,” says Lee Wallender of The Spruce.
Wallender recommends high-value home remodels like:
- Fiber-cement siding replacement
- Garage door replacement
- Manufactured veneer stone
Try to complete these renovations without spending too much money in order to make a profit or break even on the house sale, he advises.
Improve Energy Efficiency
Investing in improving your home’s energy efficiency will save you money on bills.
Consider:
- Installing double- or triple-paned windows
- Upgrading your insulation
- Replacing your HVAC system
Getting Started
Rest easy knowing that we can guide you in what renovations will provide the best return on your investment. We pride ourselves on delivering custom, high-quality projects that are designed to suit your specific needs all while standing the test of time.
Send us a message to get started on your renovation!
