Whether you’ve decided on a home improvement project because you’re selling your home, are adding a home office or gym because of COVID-19 or feel it’s time for a new look, you’re not alone. Around 44% of Canadians have completed renovations or are considering them since the pandemic began.
But before you start tearing down walls, it’s important to know that it’s unlikely you will recoup the full costs of renovations, or profit on them, as you see on your favourite house flipping show. However, the home improvement projects listed below can help you compete on the market when you sell, are generally known to give you the best returns on your investment and will give you joy and a new love for your home while you live there (when the work is done).
When you are ready to sell, use a realtor and a real estate lawyer who provide professional services near you. Their knowledge and experience with the local market protect what is likely your most significant investment.
How this Information Was Gathered
Every year, Remax surveys its brokers and agents across Canada for insights into which renovations provided the best ROI for their clients. The percentages come from their latest report. Be sure to also check out the accompanying chart of the top renovation choices in cities across Canada.
Before looking at the percentages of ROI, keep in mind that if the value of your home is already at or above the current market value in your area, your renovations will net a lower ROI than if your home is currently valued below the average.
With that, the following renovations can give you the best return on your home improvement dollars:
According to the survey, flooring is one of the few exceptions to the rule that home improvements won’t make you more money than you invested. Flooring upgrades can potentially return 100-150% of what you spent, with the disclaimer that the type of flooring and the quality of installation are critical for getting a good return.
Stay away from carpet and if you have carpeting, you might want to consider replacing it as your next project. Perfectly installed hardwood floors can be a home’s key selling feature, but you will have to pay premium material and labour costs, and they are high-maintenance. Laminate flooring provides stylish, cost-effective options as an alternative.
2. Structural and Efficiency Improvements
While roof replacement, drainage upgrades, foundation repair, waterproofing, and installing new, energy-efficient windows weren’t commonly among the top most completed reno projects, these types of renos are money well-spent.
Protecting the interior of your home from water damage and dreaded mould by reinforcing the exterior carries significant weight with homebuyers. As does replacing old, drafty windows that save you and your potential homebuyers energy costs. Renovations of these types that save buyers money returned about 75% of the cost to the homeowner.
3. Kitchen Upgrades
Kitchens are one of the first places potential buyers look because that’s where families and their guests spend a lot of time socializing. Having an open, accessible kitchen with lots of natural light, a stylish look and modern appliances can make buyers fall in love with your home. Kitchen renovations can be as simple as installing new cabinet doors, countertops and appliances or a complete remodel. Kitchen upgrades can giveyou anywhere from 75-100% return on your investment.