As housing prices fluctuate and more people are deciding to stay in their homes instead of sell, you may be wondering what are the best renovations to make on your home that will add the most value. You can have the best of both worlds by getting to enjoy all the benefits of the new upgrades while also knowing it will help with future selling potential. There are particular renos that will add value, which are helpful to know before deciding on a renovation to improve the look or comfort of your home.
Let’s take a look at the interior and exterior renos and the return on investment (ROI) for each according to the National Association of Realtors. These figures are based on homes in the USA, but we feel that they are a close reflection of our Canadian housing market.
When you think about a reno inside your home, what are the top areas that come to mind? The most popular options are kitchens, bathrooms and floors. Here are some of the top interior renos and their corresponding return on investment (ROI).
|Interior Renovation Project||Return on Investment (ROI)|
|Refinish hardwood floors||147%|
|New wood floors||118%|
|Basement conversion to living area||86%|
|Complete Kitchen Renovation||75%|
|Adding a new bathroom||63%|
|Adding a new primary bedroom suite||56%|
Exterior renovations are not only beneficial to curb appeal, they are often practical and help with the energy efficiency of your home. Here are the top renovations:
|Exterior Renovation Project||Return on Investment (ROI)|
|Fiber cement siding||86%|
|Steel front door||63%|
|Fiberglass front door||60%|
If cosmetic upgrades are not in your budget or you feel overwhelmed with cosmetic choices, many savvy homeowners are looking beyond the cosmetic and are concerned with the age and condition of the HVAC systems, foundation and gutters as well as updated electrical or plumbing. The return on investment for these items may be more difficult to calculate, they often lead to savings over time and are still a great investment for your home.
As Real Estate Agents, we are in hundreds of homes every year, and we have seen so many successful renovation projects that have absolutely added value to them. We hope this is helpful if you are thinking about a renovation. Want to learn more? Ask us today what renovation would be best to make your home your happy place!