How to value your home renovations

By: Philip Hollett

How to value your home renovations

Tags: Philip Hollett, Burlington realtor, waterdown realtor, Oakville realtor, home renovations, top renos, 

If you plan to update your home with a significant renovation, be sure you are investing in the right upgrades. There is an assumption that the money you invest in a renovation will be fully returned to you if you sell the property. That is not always the case. 

Payback on renovations is measured three ways:

1. The value of increasing the selling price of your property
2. The value of enjoying the renovated space
3. The value of maintaining the worth of your property

To yield the highest return on your investment, make sure the quality of the materials & workmanship are consistent with other homes in the area and that the renovation blends in with the overall style and design of your home. You certainly don’t want to over-improve. 

Here are the top 5 renos with the highest return on investment:

How much you spend on improvements should depend, in part, on how long you plan to live in your home. And if you spend thousands of dollars on a unique custom designed feature that may not appeal to most, you may not even recover a portion of your investment. So consider your selling timeline before you create a space that only you will enjoy.

The top 5 renos with highest enjoyment value are:

• Basement finishing
• Garages
• Sun rooms / Additions
• Decks / Fences
• Landscaping 

Most buyers don’t want to find out during their home inspection that they’ll have to spend tons of money on big-ticket items. Always better to keep your home in good condition to maximize your chance of getting top dollars when you decide to sell.  ?Replacing those big-ticket items as they near the end of their life expectancy is essential. 

Top 5 renos to maintain worth:

• Replacing the roofing
• Updating the heating / cooling system
• Replacing windows & doors
• Updating electrical (panel, wiring, sockets, fixtures) 
• Repairing structural defects 

As a real estate expert, I can provide an objective perspective before you start your renos.  Reach out anytime, I'd love to help you plan your next one!

1 Message Us On Facebook Message us on Facebook!