Renovations are a great way to improve the functionality, aesthetics, and value of your home. But with so many options available, it can be overwhelming to decide which renovations to prioritize. In this article, we’ll explore three different ways to measure the value of renovations and provide tips on how to make your renovation project a success.
Measuring Renovation Value
When it comes to measuring the value of renovations, there are three main factors to consider: increasing the selling price of your property, enjoying the renovated space, and maintaining the worth of your property.
If you’re looking to increase the selling price of your property, there are certain renovations that have a higher return on investment (ROI) than others. According to industry experts, the top five renovations with the highest ROI are:
- Kitchen renovation or update with quality of materials and workmanship consistent with the area.
- Bathroom renovation or addition with quality of materials and workmanship consistent with the home and the area.
- Repainting interior/exterior completed in tones with wide-ranging market appeal.
- Updating décor including lighting and plumbing fixtures, countertops, replacing worn flooring (vinyl or carpets), or refinishing hardwood floors.
- Decluttering by removing all excess items to showcase the features of your home.
However, if you’re more interested in enjoying the renovated space, the top five renovations with the highest enjoyment value are:
- Basement finishing
- Garages
- Sunrooms/additions
- Decks/fences
- Landscaping
And if you’re focused on maintaining the worth of your property, the top five renovations to consider are:
- Replacing the roofing
- Updating the heating/cooling system
- Replacing windows and doors
- Updating electrical (panel, wiring, sockets, fixtures)
- Repairing structural defects
Tips for Renovation Success
No matter which type of renovation you choose, there are certain tips you should keep in mind to ensure your project is a success. Here are four tips to consider:
- Consider the present condition of the item you’re renovating. Make sure your renovation blends in with the overall style and design of your home to appeal to a wider number of prospective purchasers.
- Hire trusted professionals with references. Consult with an interior designer, architect, and/or contractor before you start your renovation project to draw up a plan and get advice. Don’t forget to build these costs into your project budget to prevent cost overruns and change fees later on.
- Engage a professional appraiser to increase your awareness of over-improvement and unique features. Consider your neighborhood and the expectations of buyers in the area when planning your renovation project. Avoid expensive projects that over-improve your home and unique designs or improvements that are uncommon for a particular market.
- Before renovating, consider the value the improvement may add to the overall value of your property. Work with an expert and find a qualified professional real estate appraiser in your area through the Appraisal Institute of Canada’s online search tool.
Conclusion
Renovations can be a great way to improve your home’s functionality, aesthetics, and value. But before you start tearing down walls and replacing fixtures, consider which renovations will maximize the value, enjoyment, and worth of your property. And don’t forget to follow the tips outlined in this article to ensure your renovation project is a success.
