If you’re wondering how to boost the resale value of your house, we’ve put together the top 5 home renovations to increase your home’s value.
With the superheated real estate market in the GTA showing few signs of truly cooling, many homeowners are delighted with how much their homes have risen in value in just a short time. It seems like it’s never been easier to sell a home ‘over asking’ – often 6 digits over asking – no matter what its size, layout or general condition, because demand continues to outstrip supply.
If you’re thinking of selling your home, you would still do well to try your utmost to appeal to buyers, even under these favourable conditions.
Because while your home may well have appreciated in value despite a lack of improvements, all other homes have, as well – so you’ll need that much more profit in order to upsize to your next home.
Moreover, the Toronto real estate market, like all real estate markets, is cyclical (even if the ultimate trend is always upwards). Increasing pressure on buyers, frantic bidding wars and economic uncertainty are driving some would-be home buyers to explore other options: moving outside the GTA to new hotspots like Hamilton, renting forever, or staying in their current condos.
Speaking of condos, that’s a market that doesn’t grow in value at the same pace as the single family housing market; meaning that if you’re putting a condominium on the market, you need to do all you can to outshine your neighbours in order to attract qualified buyers and net the best asking price.
Of course, your home or condo may already be renovated to the nines, in which case, kudos: all you need to do is put some cookie dough in the oven and let the showings begin.
For the rest of us, let’s explore what the experts have to say about the best renovations to sell your home fast and for top dollar.
Top 5 Home Renovations That Increase Resale Value and Give the Best ROI
In a recent article, Excalibur Insurance named renovating the kitchens and the bathrooms as the number one and two best renovations to sell your home. At Trillium Kitchens and Baths (ahem!) that makes us feel wonderful, because we already knew that! Here’s why.
- Upgrade the Kitchen because it is the natural heart and hub of any home – and experts such as The Appraisal Institute of Canada (who certainly ought to know) say that kitchen and bath renovations are among the best renovations to sell your home.
Even people who don’t plan on competing on Master Chef can certainly see themselves spending time in the kitchen, if only to get drinks from the fridge!
Buyers know that if they purchase a tired, outdated kitchen with old appliances, worn-out counters and damaged cupboards, they’re going to have to put money into it before they can entertain with ease.
They’re already doing the figures in their head, adding a kitchen reno to your asking price. Even more than money, for some buyers, convenience is of paramount importance. What young family wants to be kitchen-less for weeks while they complete a major kitchen renovation post-move-in? They will opt instead for the home with the nice kitchen.
A full kitchen renovation can seem daunting for some sellers. In this case the areas to focus on are the cabinetry (replace, or reface/stain/paint and replace hardware) and the countertops (replace with a durable, low maintenance and universally-liked material such as quartz) as well as lighting – pot lights do very well in the kitchen.
- Redo the Bathrooms, especially the main bath, because this is now often the only room in the house where people (especially parents of young children) can find privacy and peace of mind.
The bathroom has become the zen zone for modern living, a place to relax, pamper oneself, and basically shut out the world. Modernizing the bathroom can have a big impact on the resale value of your home because this room is important to all buyers (other rooms, such as dens, playrooms, media rooms etc. may not be important to everyone).
Even if your bathroom is seriously small, and/or budgetary constraints prevent expansion adding more baths, there is still much you can do: install more attractive lighting, change tiling and fixtures, add a glass shower door, install a high end energy efficient toilet…the list goes far beyond just a fresh coat of paint.
- Improve your Flooring to achieve a 5-6x return on your investment, according to ca.
Why the incredible importance placed on something that you walk on?
There are many reasons.
Hardwood flooring has been in vogue for a very long time now, and like ceramic flooring in the kitchens and baths, it’s also durable, easy to care for and refinish over and over, and doesn’t hang on to allergens and dirt the way that carpeting does.
It’s also low in VOCs, which people are increasingly concerned about, compared to other flooring types like wall to wall carpet and vinyl. Of course, hardwood isn’t the only game in town; there are plenty of high quality laminates that look like the real thing and perform very well, in addition to more esoteric flooring solutions, like polished concrete, that also retain value very well.
What these options have in common is making your home way more attractive to buyers, which makes flooring our third best renovation to increase home value.
- Windows and Doors are often-overlooked by sellers revamping their homes, but they shouldn’t be; according to authoritative website ca, they recover between 50% and 100% of their initial investment – and potentially far more, if the existing doors and windows are sub-par.
If your laundry list of potential renos is enormous, make sure doors and windows make the cut, because they can significantly improve all-important curb appeal and entice buyers who are looking for energy efficiency savings down the line.
- Additions are the big, hairy renovations that add square footage to your home.
Relatively few sellers expand with the deliberate intent to sell immediately at a profit, but if you are feeling cramped in your family home and are wondering whether an addition is the way to go, the answer is yes – such renovations do significantly improve a home’s resale value when the time comes.
Whether you knock down a single wall to create an open concept main floor plan or finish the entire basement to add a potential income suite, additions and expansions are most certainly among the home renovations that increase resale value.
Still not sure what renovations to do before selling?
It’s important to do your research, look at your budget, and honestly appraise whether the changes you are considering will really add the value you want.
Call us to discuss the viability of your next project today!