January 25, 2009
Are Your Renovations Really Increasing the Value of Your Home?
Handy Man asked:
Are your Renovations Really Increasing the Value of Your Home?
When considering a home upgrade or reno there are 2 very important things to evaluate:
#1. Value to you
Enhancing your home with a renovation may offer more than money can provide. A beautiful outdoor living area to entertain on, a finished basement for the children to play, or that dream bathroom to help you unwind, all may contribute to a quality of life that only a home can build.
#2. Return on Investment - Resale Recovery
Despite what the trendy home flipping television programs show, not all home renovations or upgrades will give you a large return on investment. Infact, more so than not, most home renovations give you very little return on your investment. Very rarely does a $10,000 home renovation get you a $20,000 return. When considering a home renovation or upgrade for resale purposes, keep all costs in check and splurge only on the necessities.
Return-on-Investment Renovations Chart
Some renovations can seem more promising than others regarding your return on investment. In a buyers market, certain home upgrades are necessary to get top value for your home and to move quickly.
The following information is a range of the 20 most popular renovation improvements identified by a survey of the Appraisal Institue of Canada. The goal of the survey was to determine, in the informed opinion of Canada’s professional real property valuers, what effect home improvement projects have on the value of home resale.
Please note: Home values and returns on renovation investments are dependent on so many factors such as the location of the property, i.e. rural/urban, the neighbourhood and notably important is the quality of workmanship and materials.
Renovation
Resale Recovery
Basement Renovation
50 - 75%
Bathroom Renovation
75 - 100%
Install Central Air
25 - 75%
Recreation Room
50 - 75%
Adding a Fireplace
50 - 75%
Flooring Upgrade
50 - 75%
Furnace / Heating Upgrade
50 - 80%
Kitchen Renovation
75 - 100%
Landscaping
25 - 50%
Exterior Paint
50 - 100%
Interior Paint
50 - 100 %
Adding a Swimming Pool
10 - 40%
Window / Door Replacement
50 - 75%
Roof Shingle Replacement
50 - 80%
Build a Deck
50 - 75%
Construct a Garage
50 - 75%
Build a Fence
25 - 50%
Install a Skylight
0 - 25%
Interlocking Driveway
25 - 50%
Asphalt Paving
20 - 50%
Joseph
Are your Renovations Really Increasing the Value of Your Home?
When considering a home upgrade or reno there are 2 very important things to evaluate:
#1. Value to you
Enhancing your home with a renovation may offer more than money can provide. A beautiful outdoor living area to entertain on, a finished basement for the children to play, or that dream bathroom to help you unwind, all may contribute to a quality of life that only a home can build.
#2. Return on Investment - Resale Recovery
Despite what the trendy home flipping television programs show, not all home renovations or upgrades will give you a large return on investment. Infact, more so than not, most home renovations give you very little return on your investment. Very rarely does a $10,000 home renovation get you a $20,000 return. When considering a home renovation or upgrade for resale purposes, keep all costs in check and splurge only on the necessities.
Return-on-Investment Renovations Chart
Some renovations can seem more promising than others regarding your return on investment. In a buyers market, certain home upgrades are necessary to get top value for your home and to move quickly.
The following information is a range of the 20 most popular renovation improvements identified by a survey of the Appraisal Institue of Canada. The goal of the survey was to determine, in the informed opinion of Canada’s professional real property valuers, what effect home improvement projects have on the value of home resale.
Please note: Home values and returns on renovation investments are dependent on so many factors such as the location of the property, i.e. rural/urban, the neighbourhood and notably important is the quality of workmanship and materials.
Renovation
Resale Recovery
Basement Renovation
50 - 75%
Bathroom Renovation
75 - 100%
Install Central Air
25 - 75%
Recreation Room
50 - 75%
Adding a Fireplace
50 - 75%
Flooring Upgrade
50 - 75%
Furnace / Heating Upgrade
50 - 80%
Kitchen Renovation
75 - 100%
Landscaping
25 - 50%
Exterior Paint
50 - 100%
Interior Paint
50 - 100 %
Adding a Swimming Pool
10 - 40%
Window / Door Replacement
50 - 75%
Roof Shingle Replacement
50 - 80%
Build a Deck
50 - 75%
Construct a Garage
50 - 75%
Build a Fence
25 - 50%
Install a Skylight
0 - 25%
Interlocking Driveway
25 - 50%
Asphalt Paving
20 - 50%
Joseph
