With spring just around the corner, many Greater Toronto Area homeowners find themselves itching to start a renovation project. And, while many renos can improve the value of a home, there are times when unusual or excessive renovations can have the opposite effect.
That’s why it’s always advisable to consult with an experienced real estate professional before you start any major project, even if you don’t have immediate plans to sell your home. Why? We can offer advice on which renovations may add the greatest value to your home.
Curious to know the top five renovations that offer the best returns? Consider these upgrades from the Appraisal Institute of Canada (AIC):
Kitchens: There's no need to gut the kitchen entirely when you're looking to increase your home's value. Upgrades, such as new quartz countertops, stainless steel appliances, new fixtures, lighting or other minor aesthetic changes, can go a long way. According to AIC's calculations, kitchen facelifts typically pay back about 75 to 100% of their cost, making them one of the best investments.
Bathrooms: Similar to kitchens, bathrooms offer anywhere from 75 to 100% return on 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 renovations make a difference.
Floors: AIC confirms that you can count on a payback of approximately 50 to 75% when you replace old or outdated flooring. This includes replacing aging hardwood and tile or installed fresh carpet or laminate.
Closets: While it's hard to put an estimate on the rate of return that a closet will incur, potential buyers certainly consider storage when walking-through a potential home. A well-designed, organized closet with ample space and other features is a great selling point. It’s also an affordable investment that pays for itself in the end.
Energy upgrades: Whether you're thinking about energy-efficient windows and doors, a new furnace or solar panels on your roof, energy upgrades are a smart idea. They can generate a 50 to 75% return upon resale.
Remember!
If you are planning a large-scale renovation with the hope of significantly increasing the value of your Greater Toronto Area home, you must consider your audience. A realtor can provide you with valuable information to determine who will most likely buy your home, like a new family, an elderly couple or a working professional.
Custom renovations that stray from the status quo can limit your audience and increase your days on the market. Always consult the opinion of a trusted realtor before undertaking renovations for resale purposes. Once your upgrades are done, you might just realize that you want to stay after all!
For more information or to book your free home evaluation, please feel free to contact me to discuss.
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