One rule seems to apply in all cases: avoid projects that will set your house apart from other properties in your neighbourhood.
The Appraisal Institute of Canada posts this warning on its website: “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
Also bear in mind that the amount spent on renovation projects should be relative to the value of the dwelling: A $30,000 remodelled bathroom does not belong in a $100,000 house.
SEVEN hot home-improvement trends
- Home theatre
- Hardwood floor in kitchen
- Laundry room on main floor
- Whirlpool bath
- Built-in kitchen appliances
- Office on the ground floor
- Kitchen island
Percentage recovered upon resale
Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%
Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas) 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25%
Read more in Homes and Renovating
You might also enjoy:
4 Comments
Any ideas on how to reconfigure a kitchen eating bar to an island, using the same cabinets ? Of course, to be done on a modest budget, hopefullymust buying a new counter top.
As a former Real estate agent and current tradesman, I honestly have to tell you - purchase a "ready-built" kitchen, i.e. Ikea. Your material costs will be less than HALF of the big box chains (Home Despot anyone?), but the fit and finish are quite similar, if not better. Find a local contracter that can install the boxes if you are unsure, and have him build your counter tops (very often, the guy intalling your counter tops can also perform tile work - a good backsplash can make the kitchen shine). A lot of the places you go to will try to complicate your kitchen - upsell you on on organizers, "soft cusion" glides etc. Although you'd like these features, if you're selling the house, the buyers are only going to take a few minutes in the kitchen, if it's shiny, it's attractive, so what if the cutlery drawer has a special spot for your ice cream scoop? Go for the basic boxes and nice (usually REAL wood)fronts...You'll save a ton, and in the end, you'll not only recover your investment, but market & sell your home faster.
We really needrf a new kitchen and renovated 3 years ago. We are planning to stay here at least another 10 years. So we didn't buy the countertop du jour (granite), instead we bought laminate? Why? Because we have lots of countertop space and an island. Granite on all that = lots of money which could date within 10 years. A couple of years before we sell we will upgrade to the then trendy countertop material plus get a new backsplash and sink. When we sell our kitchen it will look even more current.
We really needed a new kitchen and renovated 3 years ago. We are planning to stay here at least another 10 years. So we didn't buy the countertop du jour (granite), instead we bought laminate? Why? Because we have lots of countertop space and an island. Granite on all that = lots of money which could date within 10 years. A couple of years before we sell we will upgrade to the then trendy countertop material plus get a new backsplash and sink. When we sell our kitchen it will look very current for relatively small investment compared to spending all that $ now and then updating at sale time.