Do you have a renovation project in mind – and wonder how much value it will add to your home? A recent study of renovation projects, comparing costs to value added. Here are some of the results:
Replacing a main entry door has a return on investment of over 75-95%. After all, the entrance to a home is one of the first things a prospective buyer notices.
Adding a new deck also adds value, but not as much as you would expect. Depending on the materials used, you can expect to get back 50-75% of the money invested.
Another high-payback project is the garage door. This once again demonstrates the importance of a home’s “curb appeal.”
If you’re tackling a big project, such as a kitchen renovation, you’ll be glad to know that, according to the study, a project like this adds a lot of value.
Finally, improvements to bathrooms and kitchens – such as adding new countertops or cupboards, can also be good investments that mostly pay back when you sell your home.
When considering renovation projects for your home, always take into account the "Cost-to-Value Ratio" for the project before moving forward. If your are planning to sell in the near future; major remodeling could take up to 5 years to see a full 100% return on your investment. If you are not planning to sell soon and making the updates for your own personal enjoyment, then the "Cost-to-Value Ratio" is less of an issue. Below is a short list of the average payback for some remodeling projects, according to the Appraisal Institute of Canada.
- Minor Kitchen Remodel: 75%-100%
- Major Kitchen Remodel: 75%-100%
- Bathroom Remodel: 75%-100%
- Basement Remodel: 50%-75%
- Fireplace Addition: 50%-75%
- Deck Addition: 50%-75%
- Heating System Replacement: 50%-80%
- Window Replacement: 50%-75%
- Major Landscaping: 25%-50%
Of course, these figures are averages and can vary widely depending on location, type of property, and other factors.
Need help determining how a particular home improvement might impact the selling price? Call or email us today.