Keeping your home up to date is important whether you plan to live there for many years to come or if you are going to go to market soon. When planning your renovations, you will want to consider which renovations that will pay off in the long run. Invest in home upgrades that will ultimately increase your home value. By the end of this blog post you will have a better understanding of the top home renovations to ensure your return on investment (ROI), as well as what will attract buyers in the current real estate market.
Large Investments Yield Large ROIs
As our team knows from experience, buyers prefer homes that are ready for them to move in and start living their lives. If they do not have to account for additional renovation costs, they tend to be more generous with their offers. The key major upgrades include kitchens, bathrooms, & structural updates; these are the most costly & time consuming but also yield the highest return on investments.
Kitchen
The heart of the home will always be the kitchen. If it is in the budget, we highly recommend that you make this your number one priority when considering where to work in your home. Make sure that your design is functional, optimize your counter space, & ensure that there is plenty of storage space. You’re going to want to personalize the design to your personal preferences, that is no problem. But we suggest keeping in mind the possible buyers should you go to market in the near or further future, consider choosing materials/features that appeal to the masses to incorporate into your design. For example, hidden space for garbage & recycling, soft close cabinetry, stick to natural colours, and quality appliances.
Kitchen renovations should ideally yield around a 70-100% ROI.
Bathroom
Another key room(s) in a home is the bathrooms, everyone uses them and some of us even use them as a space of tranquility after a long day. Again, it is alright to personalize the design of your bathroom renovation if you keep resale in the back of your mind. Before starting your renovation – evaluate whether or not your layout is functional, pinpoint where the strengths and weaknesses are in the bathroom, and find your focal point that you want to work around. In terms of selling your home, think of who your potential buyer is – families with small children will want a tub to use, and on the other hand elderly look for a standing shower they have room in.
When a bathroom renovation is done well, they usually have a return of 62% on average.
Structural Updates
What we mean by structural updates is anything to do with the bones of your home – roof, windows, gutters, foundation, etc. Yes, hearing “good bones” in a listing means that the homeowner has ensured to make the proper investments prevent flooding & leaks, or other structural issues. This is a great place to put your money because it helps you while living in the home & you are saving potential buyers money in the long run. Consider items like vinyl windows, a new roof, or even waterproofing the foundation.
Depending on the scale of the renovation you choose, the structural updates draw around 75% ROI.
Smaller Investments Yield ROIs Too
There are smaller investment renovations that you can complete that will still earn you money back when you sell your home – whether you are working with a smaller budget or if you are wanting to spread your savings around your home instead of focusing on one area. These may not be considered renovations so much as “updates”, though they can make your home stand out in the market. The main updates that we suggest are painting, countertops, & fine finishes.
Paint
Never underestimate the power of a fresh coat of paint, ever! It provides a high return for a relatively low investment and minimal effort. Now, we know the task of painting your home is extremely daunting to most people, but you know that it ultimately looks amazing as a finished product. It’s best to choose natural colours when choosing your paint, if you need help, we provide Colour Consultations through our in-house Interiors Team – Studio K. Repainting your home may not be the most glamorous of renovations, though it instills freshness & can flatter you home in ways you’ve never imagined.
A fresh coat of paint typically yields a 60% return on your investment.
Countertops
We already touched on kitchen & bathroom renovations, but if you are not wanting to spend the money or commit to the timeframe for a full renovation, you can always opt for a quick countertop refresh for a great return on investment. Cut that major cost into a fraction of what you would spend & invest in a quality stone to transform your space. If you are swapping your kitchen counters, you can go one step further by swapping your appliances for quality slide-in or a stand-alone set of kitchen appliances with a pro-look like stainless steel.
Swapping your countertops can achieve a 70% ROI.
Fine Finishes
For buyers, seeing a home that has been finished cohesively is extremely appealing. It may not sound like it has such an impactful “wow” factor, but it does go a long way. Plus, it is probably the least expensive renovation to complete & is not time consuming. Investing in new interior doors & hardware, replacing the front door & adding a quality lockset, and adding baseboards, door trim, crown moulding, & wainscotting are great place to start. These are non-invasive improvements that can immediately punch up the appeal of a home. However, this is not a time to skimp on materials or workmanship. Hire someone you know & trust, or contact us for our favourite handy people to help you out.
Completing your home’s fine finishes generally returns around 50% of your initial investment.
Check out the infographic we made below to see all the different renovations & updates you can do while understanding their ROIs.
Attracting Buyers in Our Current Market
In the past couple years, our views about what to look for in a new place to call home have adjusted considering that our homes have been at the center of massive change. Our needs have shifted in what we may require in our space, or our wants have evolved to accommodate newfound values. Below are some of the top needs & wants we have found from buyers looking in our current market that you can incorporate into your home.
Updates that add physical square footage or make your home feel more spacious. This does not mean that you need to invest a large sum of money on an addition. Look at unfinished areas of your home that are not used to their full potential. For example, finishing your basement into a functional living space or opening your floorplan if it is possible. Lots of people around the world have also transitioned to work-from-home positions, consider converting an area in your home to a dedicated workspace.
Updates that enhance your curb appeal. As much as we do not want to judge a book by its cover, the buyers first impression comes from your home’s exterior. Attractive landscaping & maintenance will give them a good indication of home you keep up with your home. Make your home stand out by updated exterior doors – including your garage door, replace your mailbox if you have one at your home, touch up your exterior paint, and when in doubt – power wash the exterior of your home to ensure it’s polished look.
Speaking of the exterior of your home, think about enhancing your outdoor living space. We have embraced the healing benefits of being outside when we are not aloud to leave our home, & that has been a highly sought out feature for buyers. You can add a deck/patio, put in a firepit (if aloud in your area) to keep cozy in the evenings when it gets chillier, and even dress up your front porch to offer additional seating space.
Before you start any of these projects, take the time to evaluate your budget, timeframe, & which areas of your home need some love. If some rooms are outdated by decades, it might be best to start there. Consider whether the project would help a buyer see your home as where they want to live, whenever you decide you want to go to market. You want to add convenience to your daily life & bring joy with the beauty within your home. Best wishes as you embark on your renovation journey, and as always, we are here to help in any way we can!