Best ROI Home Improvements
Prepping your house for sale can often require an investment to bring it up to current standards and help it compete in a hot real estate market. If you’ve lived in the house for several decades, you may be blind to your home’s shortcomings. Below, we examine the best renovations to increase home value so you can get the best return on your home investment.
Paint
Painting is probably the most under-appreciated home improvement and was chosen as one of the top three best return on investment home improvements in 18 of the 31 housing markets surveyed – including in Toronto – in a recent RE/MAX study.
Painting is an easy way to freshen up the look of your home and cover up blemishes on the wall. It provides a high return for a relatively low financial investment and minimal physical effort, resulting in a home that feels contemporary and looks new. Most areas in the house can be done by average-skilled homeowners, while difficult areas like ceilings above open stairways, eavestroughs and frames around second-story or rooftop windows are probably best left to professionals with the proper ladders, scaffolding and safety equipment.
Professional painters can also help homeowners select the right colour palette, scrape the walls, seal trim and plaster or repair minor damage before applying top-quality paint that’s appropriate for each surface (matte for living areas, eggshell or semi-gloss for trims and doors and proper ceiling paint.) And if you can’t decide on a new colour palette, white is a versatile colour that never looks dated, fits in with all sorts of interior design styles and brightens up even the darkest basement. In listing photos, it creates the illusion of larger, cleaner rooms. In fact, you’ll be amazed at how you can use subtle tints and shades of white to vary the feel of different rooms while maintaining a cohesive look overall.
It may not seem like the most glamorous of renovations, but painting can create dramatic before-and-after photos for both the inside and outside areas of your house and flatter your property in ways you never imagined. Like dressing for your body type or complexion, a colour expert can help select the perfect shades to ensure the hours you spend painting contribute to a look that puts your property’s best face forward.
- ROI: A fresh coat of paint is one of the best ROI home improvements and typically garners a 60-per-cent return on your investment.
- By the Numbers: Budget for a 2,000-sq. ft. home: approximately $10,000-$15,000
Reinforcing Good “Bones”
Nothing sinks a sale quicker than a house that’s taking on water. In any market, but especially in a competitive one, buyers will pay a premium for a home with “good bones,” as it means less repair costs after the sale has closed. Ensuring that your roof doesn’t leak, windows in your home are in good shape, gutters and drains are functioning properly, and your basement and foundation are sealed, dry, and crack-free is crucial to realizing your home’s highest price potential.
For example, if you have old, single-pane windows with wood frames that have seen better days, consider switching your windows out for energy-efficient ones with PVC or aluminum frames. Today’s vinyl windows deliver an average ROI of 75 -80 per cent of installation cost, making them almost cost-neutral. Even wood windows offer a return of around 70 per cent, but as PVC is more affordable and requires less maintenance, it might be your best choice.
Given that today’s property buyers will almost always make an issue-free house inspection a condition of the sale, paying attention to structural issues such as a rotting roof or less-than-floodproof foundation BEFORE you set out your for-sale sign will go a long way towards generating the best offer for your abode.
- ROI: Renovations that will save prospective buyers money after the sale are some of the best return on investment home improvements you can do and will net you around 70-80 per cent ROI, depending on the scale of the improvements.
- By the Numbers:
– All new, good quality vinyl windows for a 2,000-sq. ft. home: approximately $15,000
– Stripping and replacing the roof with quality asphalt shingles: $8,000 to $10,000
– Proper waterproofing of the exterior of a foundation: approximately $60-$80/linear foot
Doors & Hardware
Investing in new interior doors and hardware, replacing the front door and adding a secure and stylish knocker and lockset, and adding baseboard, door trim, crown mouldings, and wainscoting are all examples of relatively inexpensive home improvements that can immediately punch up the appeal of a home. There’s one caveat, however, as these sorts of superficial renovations depend heavily on the quality of the materials and finishes you select for such items and how well they blend in or accent the design throughout the rest of the house. This is not a time to skimp on materials or workmanship. Hire a contractor or interior designer you know and trust to help you choose the right doors, trim and hardware, or ask for referrals from friends who you know share similar home décor standards.
- ROI: Because door, trim and hardware projects will have less of a “wow” factor than paint and may even go unnoticed by buyers – except at a subliminal level – they’ll tend to draw a smaller ROI of around 50 per cent of your initial investment.
- By the Numbers:
– Solid wood front door with quality lockset: $2,500
– Solid core interior doors with hardware: $250/per door
Countertops and Other Kitchen Renovations
Kitchen renovations like upgrades to seating, cabinetry, counters and sinks rank among the top three renovations with the highest return on investment in 27 of the 31 housing markets in the RE/MAX study mentioned above.
Since kitchen renovations can easily snowball in both scope and price, consider a quick countertop refresh and an appliance swap as lower-cost options when determining what renovations increase home value the most. Instead of shelling out upwards of $25-50,000, expect to pay about $3,000 for a quality stone like granite or quartz for a countertop area and between $5-10,000 for a quality slide-in or a stand-alone set of kitchen appliances with a professional, stainless steel look. While you’re at it, switch out your kitchen cabinets or put a coat of paint on your existing cabinetry to complete the kitchen refresh.
- ROI: Kitchen renovations are the best ROI home improvements, typically garnering a 75-100 per cent return.
Bathroom
A bathroom makeover is one of the best renovations to do before selling your home since it has a high return on investment and is one of the main things buyers look for when purchasing a property. According to our RE/MAX study, it was one of the top three renovations for return on investment in 17 housing markets, including both Toronto and Vancouver.
To add a more luxurious look and feel to a main bathroom, analyze your bathroom from a buyer’s perspective. Pinpoint its strengths and weaknesses, and ask yourself, “Where is my eye drawn when I enter this room?” Is the bathtub the focal point? The vanity? A window? That’s where your renovations should begin. Depending on where you start, items like a frameless glass shower enclosure, marble-topped vanity, or gorgeous shower tile can make all the difference.
- ROI: Bathroom renovations, when done well, have a return of 62 per cent, on average.
- By the Numbers: Bathroom renovation budgets vary but typically range between $5,000 to $15,000
Flooring
Flooring is the hardest-wearing element in any home, and for many homeowners, replacing aging flooring is a must. New flooring was one of the top three renovations for return on investment in 14 of the housing market in our RE/MAX study.
When it comes to flooring, the quality of the installation is essential. Expensive hardwood floors can look terrible if they aren’t level, boards are lifting at the corners, or there are gaps between planks. And while inexpensive vinyl laminate from a big box store can look great when laid properly, because of overuse by do-it-yourself renovators, the vinyl woodlike planks – especially in a neutral grey colour – are now a turnoff for prospective buyers, who will likely take money off their offer for having to rip up the vinyl you just put down. On the other hand, wood laminates are seeing an uptick in sales and may be a better alternative.
Replacing carpeting, however, is rarely a good idea, especially when you’re planning to sell. While some owners love the warmth and feel of carpeting in a bedroom or basement, buyers will likely have the opposite experience, knowing that carpets tend to hold on to pet smells, stains from drink and food spills and all manner of dirt, dust and grime. Spare buyers the carpet-cleaning fees – or worse, the total removal cost – and nix the idea of replacing any current wall-to-wall carpeting.
- ROI: Depending on the flooring you choose, the return is generally 100-150 per cent of your investment.
- By the Numbers:
– Typical hardwood floor: $4 to $6 per sq. ft., plus a $2 installation fee per sq. ft.
– Typical laminate floor: $1 to $3 per sq. ft., plus a $1.50 installation fee per sq. ft.
Best ROI Home Improvements
Even though you might not be considering selling your home anytime soon, it pays to know what renovations increase home value the most and to remember to tackle those with a high return on investment first. By updating various areas of your home, you can live more comfortably and rest easy, knowing that when the time comes to sell, you’ll be in a better position in the seller’s market.
