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8 Home Renovations that Add The Most Value to Your Home
By Mike Holmes
Friday, March 27th, 2020 @ 12:42pm
- It’s always a good idea to renovate some rooms in your house if you are looking to sell. I want you to remember to SELL IT RIGHT, which means doing the upgrades and renovations properly for your homebuyer. It means staying away from “lipstick and mascara” fixes that are covering up major issues with the house.
If you have wisely budgeted for bigger remodelling projects, here are some upgrades that will instantly add value to your home:
1) Outdoor Structures
Outdoor structures like decks, fire pits, and pools can bring a lot of extra enjoyment and usable entertaining space to our homes – but do they add real value to the resale price of our homes?
In some cases, yes, they do. In others, with the cost of construction and upkeep, you probably won’t ever recoup your investment.
Fences: A new fence will add more privacy and keep kids safe. It can also have an impact on your curb appeal. It can have a positive impact on the value of your home.
Deck: A deck is not a cheap investment, but it does pay off. You make your homebuyer feel like they have more useable space. Depending on the material, size, and scope of the project, you can see upwards of an 80% of the price of the deck reflected in the new value of the home.
Fire Pit: Fire pits are a nice, cozy way to increase the usability of your yard in the cooler months. This CAN add real value for potential buyers.
Swimming Pool: While pools are great for enjoying the weather and hosting parties, you won’t see a monetary return on your pool investment once you factor in all the extra costs to maintain it. If you plan to stay in the home and enjoy the pool for years to come – take the plunge. But it’s not a project worth taking on if you’re looking to add value.
Even though they’re outdoor structures – you need to take care of them like they’re part of your main home. Decks, fences, pools, and fire pits all require regular maintenance to keep them safe and strong.
A garage door replacement is also a good idea, and will cost you under $4,000.
2) A Full Bathroom Remodel
Bathroom and kitchen renovations are the most popular home improvement projects. You can expect to recover 75% of your investment (according to the Appraisal Institute of Canada). Replacing an outdated vanity, old plumbing and lighting fixtures or adding a new tile floor — will guarantee a lot of bang for your buck and give your bath an updated, modern look.
If you are considering a full bathroom remodel, you will be looking at changing the flooring, the vanity, shower, tub and toilet. Make energy efficient updates, as they will be good for your home’s resale value.
Using KERDI-BOARD is brilliant because it creates a continuous line of moisture resistance, helping prevent mould issues. And a high quality, uncoupling and waterproof system below your tiles is also an absolute must if you want your renovation to last. I also like the idea of tiling the whole bathroom.
Do future proof your bathroom. You can add a shower bench and a curbless shower to show potential homebuyers that they can “age in place”.
3) Replacing Old Windows
New windows can freshen up the appearance of your home, and replacing existing windows with energy efficient ones can save the homeowner a significant amount of money in heating and cooling costs. Drafty windows can turn off potential buyers. I just fixed a house in Holmes+Holmes where the homeowner had bad windows.
COST: Replacing the windows can cost around $10,000 at least (depending on the number of windows), but it’s one investment that you can make your money back. If you choose the most energy efficient windows, it is possible that the installation cost will be offset by how much you save over time on your heating and cooling.
4) Attic Insulation
Adding attic insulation will lead to cost savings as well as cut your monthly energy bills. This is undoubtedly be attractive to potential home buyers. If they notice ice dams as they walk up to your home, that will be a red flag for them.
You’ve got a few options when it comes to insulating material, but whether it’s batt, blown-in insulation, foam board, or spray foam, you need to provide enough R-Value, or insulating value to keep the cool air from coming in.
COST: It will cost you between $1.50 and $5.50 per foot to insulate an attic depending on what insulation material you choose.
5) Roof Replacement
How do you know it’s time for a new roof? Take a look up – are your shingles buckling, curled, or missing altogether? That’s a sign it’s time to re-shingle.
Consider solar panels as well. Buyers may hesitate to have them installed themselves, but will be attracted to houses where the solar panels are installed already.
I like a metal roof – and it pairs well with solar panels, because odds are, you won’t have to do a roof replacement before the lifespan of the panels end. As long as you choose your material carefully, have it installed properly, and choose a roofing system with a good warranty, you’ll have a good roof.
6) Embrace Smart Home Technology
I am talking about smart devices like security cameras, smart locks, smart thermostats and water leak detectors. This is an easy upgrade and market research indicates that homebuyers are looking for smart devices in a home for convenience, energy management and enhanced security.
A Schlage Encode Smart Deadbolt is a great feature to add to your exterior door for convenience and security
COST: You are looking at about $1,500 to purchase the basic smart home devices (smart thermostat, doorbell, leak detector etc).
7) Finishing Your Basement
Finishing a basement is not an easy task, but potential buyers consider the useable square footage of a home when shopping. A finished basement is an investment that can add a lot of value to your home, but you will want to make sure that you’ve insulated properly and protected against moisture. Also remember that you will need several permits for this job.
COST: The average basement reno can cost you anywhere between $50-$90 a square foot, depending on your finishes and if you finish a bathroom. According to Remodelling Magazine, you can expect a 75% return on investment for your basement renovation.
8) Kitchen Remodel
A kitchen remodel, if done right, is sure to add to the value of your house. You will enjoy an even higher return if you are remodeling an older, outdated kitchen. This will include upgrading your cabinets, your stove and refrigerator and your flooring.
Keep in mind that with an aging population—because Canada’s population is getting older—a kitchen’s functionality and accessibility is becoming more and more important. For example, lowered light switches, countertops and cabinets can make it easier for someone older or with a disability to navigate around the kitchen if they are in a wheelchair. Cabinets installed with a hydraulic system can allow a homeowner to easily move them up and down, ensuring they’re accessible no matter your mobility level.
COST: The average kitchen remodel will cost you about $20,000-$50,000. If you upgrade all of your appliances, you are looking at between $6,000 and $12,000, depending on the make and model. According to Remodeling Magazine, you can expect to recoup over 80% of your investment.
WANT MORE TIPS?
Check out the episode below of Holmes @ Home to learn more!
Remember, the big investments in your house are bathrooms, kitchens and decks, so if you put your money into renovating these areas, odds are you’re going to get it back—if you do it right.
A kitchen redesign is one of the major upgrades that you can add that are almost guaranteed to add value to your home. Read more about Upgrading Your Kitchen to Increase Value.
Smaller Projects To Increase The Value Of Your Home
If you are looking to tackle some smaller remodelling projects, these items will have a big impact on your resale value:
- A minor kitchen remodel
- A coat of paint
- Updating your curb appeal
- Installing a water heater
I have created a list of 11 EASY home renovation projects to increase the value of your home. Check it out here.