Not all renovations add economic value to your home.
If you’re renovating with an eye to resell, here are a few pointers:
Follow the trends
Updates should be in line with current trends. Buyers will have a hard time seeing the value in a new kitchen they don’t like the look of.
Putting in new carpets might suit your tastes, but hardwood flooring is much more popular. Potential buyers are more likely to appreciate hardwood floors in their new home.
Inexpensive updates can also add value, such as repainting, or replacing old light fixtures and door handles. Adding your own unique style can be risky when it comes to marketing a property.
Neutral tones will make it easier for prospective buyers to come in and see how they can adapt the property to suit their own tastes.
Think long term and be energy efficient
The Appraisal Institute of Canada recommends considering updates with a long life expectancy, such as roofs, windows and heat systems.
The Institute recommends making energy efficiency improvements that have a “high return relative to cost,” creating value both in the resale and in reducing energy costs while you live in the home.
Focus on updates in the most used areas of the home
Basements, unless they are being converted into rental suites, are rarely as profitable an investment as kitchen and bathroom updates, which typically offer the best returns.
Additions such as swimming pools or extensively-landscaped gardens might help your property stand out, but the maintenance costs associated with such updates can be off-putting to buyers and make it difficult for you to get the value back in a resale.
When you put money into your home for investment purposes, don’t overspend compared to the value of your home or the value of homes in your neighbourhood.