Adding Value to Your Home
Certain renovations are considered to add value to a home, such as modernizing a kitchen, updating a bathroom, creating an en-suite or walk-in closet in a master bedroom, and adding or remodeling a family room (especially on the main floor). On the other hand, value neutral renovations will not result in much payback.
These include adding a swimming pool, sauna or hot tub, installing paving stones in the driveway, or reducing the number of bedrooms to less than three. Finally, excessive landscaping will rarely generate as much money in return as what you put into it.
The following is a list of home improvement projects that add value to your home and the estimated percentage of payback that you should receive on the subsequent sale of your home.
- Painting. Choose tasteful, current, neutral colours and ensure the work is very professional. Estimated payback: up to 300%
- Kitchen remodeling. This can get very expensive. Keep the project in line with the style and quality of the rest of the house. Estimated payback: 68 – 120%
- Bathroom addition. A house meant for more than one person should have more than one bathroom. If most homes in you r neighbourhood have two, three or more bathrooms and yours has only one-and-a half, you will increase your property value by adding a bathroom. Estimated payback: 80-130%
- Bathroom remodelling. Upgrading an old bathroom will increase the value and add to you comfort and enjoyment. Estimated payback : 65-120%
- Finishing unfinished space such as an attic or basement. This will increase your square footage without having to build on to your home. Estimated payback: 50-90%
- Window/door replacement. This will increase energy efficiency and appearance. Payback: 50-90%.
- Deck addition/improvement/expansion. This exterior improvement will yield significant return. Estimated payback: 65-90%
- Additions of rooms (eg. bedrooms, family rooms, sunrooms, garages, etc). Increasing the square footage is always beneficial. Estimated payback: 50-83%
- Home office remodeling. Be sure to plan for sufficient electrical and cable outlets. Estimated payback: 60-73%
- Energy Efficient retrofits. Better insulation and high efficiency furnaces pay for themselves relatively quickly. Others may take years to pay for themselves (eg. solar panels, heat recovery ventilators and tankless water heaters). Payback: highly variable.
