The thought of home renovation may be a daunting one, but in reality, it can be the best move a homeowner can make.
Investing in your home can dramatically increase the value when it’s time to sell. Gutting the kitchen, expanding the master bedroom, or even updating the shag carpet to hardwood, can make your home more appealing to potential buyers.
Kitchen and bathrooms are among the top projects that increase the resale value.
“It’s an area of the house that you use every day. The kitchen is the heart of the home, and for the bathroom, the appearance of cleanliness is really important for buyers,” says Kathy McVeigh, sales representative and real estate agent at Royal LePage.
Many factors influence the return a finished project will bring. Depending on what is renovated generally 50-75 per cent of the amount invested is recovered upon resale.
But, before taking on a renovation be conscious of the house’s value. The return will not always increase due to the amount invested into the home. However, if the renovation makes sense the odds for a higher return are increased.
The same is true for finishes and materials. Splurging on rare imported marble won’t mean the full value will be reimbursed at resale.
“Typically you are only get the base price back unless there happens to be a buyer looking specially for that item,” explains Kathy.
When deciding on materials and design concepts be aware of passing trends as this may potentially harm how much a house is worth. To avoid this, Kathy suggests viewing model homes for inspiration because they are purposely designed with timeless, crowd pleasing looks.
The return cost is also dependant on whether a project is done by a professional or yourself. Moneca Kaiser, owner or Moneca Kaiser Design Build, explains that DIY projects could lower the value if it’s not done properly. A rule of thumb: if you are not Mike Holmes, you may want to consider hiring a professional. But, when consulting with a designer or builder listen and consider their suggestions.
“Usually homeowners don’t have the best ideas on how to make good design happen. You should trust that designers know how to design, you don’t tell your lawyer how to keep yourself out of jail; you shouldn’t tell your designer what your home needs,” says Moneca.
Updates not only increase a home’s liveability and equity, but possibly save the homeowner money. Improvements such as a new roof or installation can help lower heat and electricity usage, and prevent serious damage in the future.
Whatever the renovation, remember to get an appraiser to see just how far the investment went.
By Samantha Haylak