If you are thinking about selling your home, you might be wondering what kinds of home renovations you should consider doing, to increase the value of your home and make sure that it will be competitive in the real estate market. You want to choose projects that have high appeal for buyers, that will have the best return on investment and that won’t break the bank.
Before you begin planning you should note the warning on the Appraisal Institute of Canada’s website which states:
“If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
A good rule of thumb to keep in mind is that the amount spent on home renovation projects should be relative to the value of the dwelling, meaning that the money you spend renovating any one room shouldn’t be a large percentage of the house’s total value.
While you are planning and making your budget, keep in mind that there can be many unexpected costs that arise when renovating an older home. These unexpected situations are most common when doing larger projects that open up walls or deal with electrical wiring and plumbing. When budgeting, make sure you set aside 10% of the total cost of the project, to deal with any unforeseen costs.
5 Renovations That Will Increase The Value of Your Home
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From both a statistic and visual perspective, this is usually the best way to add value to your home. Kitchen renovations can be costly but also have the biggest benefits when it comes time to sell your home.
Three big aspects in your kitchen to consider replacing or upgrading are countertops, cabinets and appliances. Make sure that when choosing the style and materials of each element in your kitchen that they suit the general look and feel of your home as well as your budget.
The cost of cabinets will largely be determined by whether your cabinets are pre-manufactured or custom designed as well as your choice of cabinet material, door materials and hardware such as knobs and hinges.
When selecting your new countertops, you can choose from choices such as postform, flatlay or natural stone countertops, which vary greatly in cost and look. Another element you can look at upgrading is the appliances. Replace your old dated or inefficient appliances with energy-efficient, Energy Star-rated models.
Tip For Small Budgets: one way to give your kitchen a quick and affordable update is to give it a fresh coat of paint and replace the knobs on your cabinets and drawers.
Creating bright and modern bathrooms is a great way to increase the value of your home. Adding an additional bathroom or expanding a half bath to a full bath will almost always increase the value of a home.
Like kitchens, when looking at bathroom cabinets, the cost of the cabinets and countertops will vary depending on whether you purchase prefab cabinets and countertops you can install yourself or custom designed cabinets and countertops, and the materials they are made of.
It is also important to update (and match) your sink, toilet and bath. Sink choices are plentiful whether you prefer undermount sinks, vessel sinks or just your standard porcelain sink. Toilets too have come a long way and adding a low flow toilet is a great addition your bathroom renovation.
Tip For Small Budgets: A fresh coat of light-colored paint, new lighting fixtures and the addition of a larger mirror will greatly improve the feeling of spaciousness in a small or dark bathroom.
Painting The Inside of Your House
One of the most affordable and easiest changes that you can make to your home to improve its value and your ability to sell is to give all of the walls a fresh coat of paint. It is often best to choose neutral colours. Keep in mind that neutral colours don’t have to just include white and beige, they can also include browns, greens and bolder accents.
To limit the amount of paint coats required, use a primer as your base coat. The quality of your paint and primer will also affect how many coats are required for a nice finish.
Tip For Small Budgets: If your budget is limited, you can choose to paint only a couple of rooms that are in the most need or purchase a lower quality paint to stretch your dollar further.
Replacing Your Roof
If you have a common roof finished with asphalt or shingles, its average life span is around 10 to 20 years. If your roof will need to be replaced in less than two years, this will turn off many perspective buyers. They will have just spent a large sum of money on a house purchase and the thought of having to spend another large chunk of money on the maintenance of their new home so soon after buying can be daunting. For this reason, replacing your roof if it is nearing the end of its life span can help improve the value of your home.
Not only can a new roof help you stay competitive in the market but it will also improve the curb appeal of your home. In addition, using tin or metal roofing can be a huge draw as they have two to three times the life span (around 50 years), which is longer than most people will own their home.
Tip For Small Budgets: Regular roof and eaves maintenance will help expand the life of your roof.
Adding Energy-Efficient Windows
With energy prices continually rising, home renovations such as replacing old windows with energy-efficient windows is becoming increasingly desirable. Replacing the old windows also provides you with an excellent opportunity to ensure that there are no leaks around your windows and further reduce drafts in the home. Most new energy efficient windows are as attractive as they are practical and will prevent unwanted condensation during the wet cooler months of the year and keep your home cooler during the hot summer months.
Tip For Small Budgets: There are a number of government programs that can help reduce the costs of projects such as adding energy efficient windows.
I hope this provides you with some ideas to plan which home renovations will be of most value and benefit when you are trying to sell your home.