Increasing your home’s value might seem like a no-brainer – just update old fixtures and floors, add a coat of paint and maybe do a full-scale reno or two. However, getting the most out of your renovation dollars means renovating your property smartly. There are certain elements of a home that will automatically fetch more money on the market if they have been updated.
Things to Consider First
Aside from actual renovations, other factors will also play a significant role in how much you should spend, and on what. Location is a very big factor as more expensive neighbourhoods will expect higher-end renovations to be done than renos done on homes located in less expensive neighbourhoods.
The value of your home versus the value of similar homes in your neighbourhood is something else that you should take into consideration. You certainly don’t want to be spending more on renovations that your house is worth on the market. For instance, if you paid $350, 000 for your home and put in renos worth $50,000, then you should expect your home’s value to rise to at least $410,000 – if it doesn’t then you should scale back the scope of the renos you want to make in order to make a bigger impact.
Smart Money Options
The first things you should renovate in your home if they have seen better days are your roof, your windows and doors and the home’s infrastructure, which includes plumbing and electrical. While these basic elements are not very sexy and will not really get much notice from your friends, they will definitely impress homebuyers who want a solid structure that will provide them with peace of mind.
Next, the two most important places in a home that will sell homebuyers are the kitchen and the bathroom(s). Adding a family room and master suite are also popular options that bring value to a home. Adding a swimming pool or landscaping your yard, while nice, won’t increase your property’s value by very much.
Renovating properly is another very big requisite to get the best return on your money as possible. While you may want to spend the next 20 years in your home, it still doesn’t mean that you should indulge in the retro pink kitchen cabinets. Eventually you will want to sell and those flashy cabinets will drag the value of your home down. Choosing classic finishes that will age gracefully is your best option. Elegant, neutral finishes are the way to go if you want something that will last a lifetime and will still be appealing when you are ready to sell.
Consulting with a savvy real estate agent before doing renos is very helpful and a smart agent will be able to highlight those areas that will give you the best return.