If you plan to complete a renovation on your home you should first look at what renovations and improvements will provide you with the greatest return on your investment when you sell your property. It is wise to find out what features similar homes in the area have so that you don’t over improve your property. Keep in mind that the amount of money you spend on the renovation should be relative to the value of your property. For example, a $30,000 kitchen doesn’t belong in a $100,000 home.
In the 2014 “Cost Versus Value: Remodelling pays off Big Time” Report, the National Association of REALTORS reports that the top 10 Remodelling Projects with the Greatest Return on your Investment are as follows;
- Steel Front Entry Door 97% ROI
- Wood Deck 87% ROI
- Vinyl Siding Replacement 87% ROI
- Attic Bedroom 84% ROI
- Garage Door Replacement 83% ROI
- Minor Kitchen Repair 83 % ROI
- Vinyl Window Replacement 79% ROI
- Basement Remodel 77% ROI
- Bathroom Remodel 77% ROI
- Major Kitchen Remodel 69% ROI
Some of the other interesting finding in the report were as follows; replacement of roof shingles as a very costly improvement, only provided a 63% ROI. Buyers found value in creating an inviting outside space to enjoy by adding a cost effective wooden deck (87% ROI) but weren’t willing to pay much extra for a home with a deck made of composite (65% ROI). Bathrooms and Kitchens are the two things that “wow” home buyers and it is no surprise that spending money in these area add value thus providing great ROI percentages. If your area calls for improvements such a “granite countertop and stainless steel appliances”, then spending money on these items will be sure to impress today’s home buyers. Remember to use quality products in kitchens as it can cost upwards of $20,000 to remodel a kitchen and should stand wear and tear for years to come. A 2013 NAR survey reported that 47% of the homeowners who undertook a renovation project remodelled their kitchen. Hgtv suggests creating a “spa-like” washroom when tackling a bathroom renovation by using soothing colours and modern finishes.
Lets look at the #1 ROI improvement and something that is on our “to do” list when it comes to home improvements for us personally – a new front door. SImple, cost effective and will work wonders for increasing curb appeal and energy efficiency of the home. At 97% ROI, this home improvement is a no brainer.
If you have any questions regarding ROI or improving your home for today’s market, contact us at info@leadinglondon.ca
