One of the best ways to improve the resale value of your home is to remodel or renovate, but what renovations will yield a good Return On Investment (ROI) and what renovations are done simply for the enjoyment of your family.
Remodeling costs have actually dropped approx. 15% in the last 5 years. A lot of home renovation show have inspired the do-it –yourselfers and as a result many contractors have followed suit to drop their price.
GOOD worthwhile home renovations can yield up to 80% ROI especially in the first 1 – 2 years of the repair, so keep in mind the re-sale date when remodelling.
When renovating, especially with thought of re-sales think of 3 main things:
1- MAINTENANCE
2- REPLACEMENT
3- CURB APPEAL
Everyone knows kitchens and bathrooms draw the buyer, but here are other improvements that you may not have considered but will increase property value.
FIRSTLY always consider doing the non- sexy things first.
Buyers are very savvy these days, a lot of people may be able to look past the cosmetics if the structure is solid. So don’t re-model the kitchen if your roof is leaking, that like having a facelift when what you really need is by-pass surgery. IF your structure is not solid, a good realtor will know how to deduct those costs from your selling price and you will receive a low-ball offer on your home, assuming an offer comes in at all.
MUST DO:
– roof and flashing
– brick work – a lot of times brick work indicates leaking behind the home
– gutters and downspouts – clean and flush, improper downspouts can cause leaking in the basement and even a cracked foundation
– furnace: high efficiency furnace have a much shorter life than that of their dinosaur counterparts. After 15 years it is really time to look at replacement options.
– Windows: Can’t hide those old wooden windows, changing up the windows is probably one of the most expensive ventures, but the house will be a far more impressive commodity on the market. New windows can add as much as 69% ROi (cost of apprx 14k) Make sure they are clean when selling.
– Attic: insulation insulation insulation…. More often than not that builder didn’t put nearly enough to begin with…and if improper venting is an issue you can add mold to that list as well.. Find these things out before a home inspector for your buyer does.
CURB APPEAL:
This appeals to the emotion of the buyer and everyone know most people buy emotionally.
A house must speak to them.
1 – Front door: Steel front door is better than the 3 times more expensive than fibre glass. It’s more energy efficient because of its magnetic weather stripping and can be repainted easily. Be careful though not all paints go well with steel ex: stained look. A new door can add up to 73% ROI on a home.
2 – Garage doors can yield a 72% ROI
3 – A Wooden deck can yield up to 70- 81% ROI (cost of approximately 10K). Be smart, adding a deck can return more than adding a sun room Deck makes a house look more spacious and gives the perception of more sq. footage
4 – Lawn and landscaping, underestimate the power of mulch and some colorful annuals. For re-sale look consider flower pots
Not all renovations are geared with a buyer in mind, more often than not house owners renovate to their own tastes and to their own style. Live in the home the way you want to.. when it comes time to sell things can always be undone.
Things that have a LIMITED ROI: these are projects for your enjoyment, lifestyle projects
– Swimming pool
– Home theatre
– Wine cellar
– Safe room
– Sauna
IF time and money is of the essence and you simply cannot renovate the way you would like to you’re your home, Please DO NOT overlook the following:
– Declutter
– Lighten and brighten
– Look after your yard
– Keep up with plumbing and electrical
– Properly stage a home
– Keep up with a painted interior / exterior
With more money
– Flooring (often laminate can be a great look when hardwood is not in the budget)
– Update kitchens and bathrooms
