Top 5 Home Renovations & Upgrades for the Best ROI
Now that the spring market is in full swing, and with summer right around the corner, sellers are looking to list their home in the hottest season of the year. However, with listing naturally comes thoughts of upgrades to complete to ensure your home really stands out and gets the attention it deserves. Before diving into renovation projects, check out these 5 upgrades that won't only make your home sparkle, but will also garner the highest return on investment so that your money is put to good use.
When preparing for home renovations, whether it be to upgrade your home for yourself, or getting it ready to sell, trying to choose between projects can be daunting. Your home is an investment, and every dollar you spend should count. To ensure you are spending your money wisely, it is important to understand exactly what a return on investment is, and which home renovations offer optimum returns.
In real estate, a return on investment often referred to as ROI, is the difference between how much you gained or lost financially on your investment compared to how much you put into it. When upgrading your home, you should be looking at renovations that will provide the best return on investment. In the current climate, many homeowners are taking advantage of market conditions to capitalize on their ROI, as the demand for homes, especially those outside of the major metropolitan cities, lies in their favour.
Here is your guide to the Top 5 home improvements that you can make to receive a maximum Return on Investment.
Kitchen Upgrades
Return On Investment: 75% +
Cross-culturally, kitchens are typically the meeting place for families; It is where we gather, where we eat, and where we laugh. It is a room that see’s a lot of use, and when modelled or staged just right, it can be the selling point that many buyers are seeking. Fortunately, you don’t have to do a complete redesign and renovation to make an impact. A minor remodel with cabinet updates, a new countertop and updated fixtures, hardware, storage solutions, lighting, and a fresh coat of paint will give a complete facelift to any kitchen space and have buyers lining up to have their offers reviewed.
There are many aspects of the kitchen remodel that a handy man or woman can do on their own, or if you are looking for someone to complete the work for you, hardware stores and contractors have great options that will transform your kitchen, ceiling to floor.
A Splash of Paint
Return on Investment: 50%+
Adding a fresh coat of paint may be one of the best ways to bring life back into your home, at a manageable cost. Not only does it brighten up your space (provided you are using light, neutral colours), it also makes the home appear clean and fresh, untouched, well maintained, and when done right, it can highlight some of its best features. Having a quality paint job will also reassure buyers that there is less work to do on the home when they take ownership. Having your home painted before selling is an upgrade that almost guarantees a good Return On Investment.
Flooring Upgrades or Repairs
Return on Investment: 80%+
A huge feature buyers look at when pursuing homes, whether in person or online, is the type of flooring installed and the condition that it is in. If you are wall to wall with tired, worn out, or dated flooring, it can easily distract from the rest of the home's great features. Reviving the ground you walk on with something more practical and modern is a great way to improve the overall appearance of your home, and is an expense that has great potential for a high ROI. While some homeowners are experienced in laying down flooring, getting a professional to do the job will ensure it is done properly the first time around so that it looks its absolute best and maximizes your return. If your flooring is in decent condition, it may just require a bit of TLC. See here how to refinish your existing hardwood flooring so that it looks and feels as great as it did when it was first installed.
Home Repair and Maintenance
Return on Investment: 60% +
When home renovations are on your mind, you may find yourself dreaming of a kitchen project similar to the ones seen on HGTV’s Extreme Makeover: Home Edition. While those renovations are great to watch on television, they are time consuming, expensive, and despite how great they look, they dont always bring back the highest returns. This is why it is so important to be smart with your home renovation projects. If there is a lot of maintenance that needs to be done on your home, having that up to date may be more useful than projects that work on the home's aesthetic. Ensuring home repair and maintenance are caught up can offer a buyer peace of mind and reassurance knowing that they won’t need to worry about any pricey repairs in the near future. Servicing or replacing central air and furnaces, hot water heaters and duct work is a great place to start, but don’t forget to take a look at bigger items like an old roof, or outdated windows and doors. These repairs will help the bones of the home stand out, and that is something buyers don’t often ignore.
Bathroom and Powder Rooms
Return on Investment: 60%+
Beautiful bathrooms and powder rooms are great ways to garner some attention when selling your house. If you want to go above and beyond a typical deep clean in your bathroom and really dress to impress, look into a complete transformation by introducing modern designs, and bringing as much light and space as possible. Bathrooms can easily feel like a luxury these days, and with the right upgrades, your porcelain and your return on investment will be something to brag about.
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