Whether you’re a homebuyer, owner, or seller, maximizing your investment is a top priority. The potential return on investment depends on various factors, including market conditions, the extent of your investment, and demand-driven trends. However, certain home renovations are like a guaranteed return, providing a valuable boost to your property.
Rising Value Through Renovations
For home sellers, strategic renovations can speed up the sale and potentially fetch a higher price. On the buying side, renovating a fixer-upper can be a pathway to a desirable neighborhood at a more affordable cost. Homeowners who are not yet ready to move or who face limited inventory can leverage renovations to enhance their current space, bypassing the challenges of a competitive market.
According to a recent RE/MAX Canada report, more than half of Canadians renovate their homes for personal enjoyment. A survey conducted by Leger on behalf of RE/MAX Canada revealed that some renovate to enrich their lifestyle with recreational and entertainment upgrades, while others focus on home maintenance. Importantly, 16 percent of Canadians renovate to boost the market value of their homes, with plans to sell within the next one to three years.
Irrespective of the motivation behind the renovation, 59 percent of Canadians consider the return on investment when making renovation decisions. So, do home renovations truly pay off on resale? We asked RE/MAX brokers across Canada to identify the top renovations that yield the most significant payouts for home sellers.
Top Home Renovations for Resale Success
Kitchen – 93.5% of RE/MAX brokers agree that kitchen renovations provide the best ROI. This includes updated cabinets, countertops, and appliances. While renovating the kitchen yourself after moving in may save costs, many homebuyers prefer move-in ready homes, making a renovated kitchen a valuable asset. The “move-in ready” factor is a strong selling point.
Bathroom – 61.3% of RE/MAX brokers highlight bathroom renovations as high-return upgrades. Just like the kitchen, buyers often seek move-in ready homes with attractive features, making a well-done bathroom renovation a compelling selling point.
Paint – 58% of RE/MAX brokers emphasize the impact of a fresh coat of paint. It’s a simple and cost-effective investment that significantly improves the resale value. Light and neutral paint colors recommended by home stagers can make a home appear more spacious, brighter, and cleaner.
Flooring – 45.2% of RE/MAX brokers recommend new flooring, with preferences leaning towards hardwood or tile over wall-to-wall carpets. Updating flooring not only enhances aesthetics but also removes the aging aspect, potentially revealing hidden gems like hardwood underneath.
Finished Basement – 16.1% of RE/MAX brokers see finished basements as a strong selling feature. Renovations that add liveable square footage are always in demand, with lower-level rooms offering versatile spaces for a family room, home office, extra bedroom, or bathroom. This adds significant value during negotiations.
Outdoors/Landscaping – 12.9% of RE/MAX brokers indicate that outdoor projects can yield good ROI. The pandemic has increased the appeal of features like yards, pools, hot tubs, decks, patios, and landscaping. Depending on the project scope, these upgrades can offer low-investment, high-return benefits on resale.
Roof – 12.9% of RE/MAX brokers recommend investing in roofing before listing a home for sale. A new roof, often overlooked, can be a selling point, particularly in regions where weather takes a toll. It shares the sixth spot with outdoor projects and landscaping in terms of ROI.
Open-Concept Floor Plan – 9.7% of RE/MAX brokers see potential in redesigning homes with an open-concept floor plan. While this is a substantial project, removing walls and creating a more modern layout can make an older home feel larger than its actual square footage.
Windows – 6.5% of RE/MAX brokers believe that new windows lead to higher offers on the resale market. Although not the most glamorous renovation, buyers appreciate the value new windows bring, making it a beneficial move for both the buyer and the seller. Additionally, new windows offer an understated refresh to the home, both inside and out.
When planning your renovations, remember to include the consideration of a potential return on investment. These top renovation choices can give your property an edge in the competitive real estate market. By enhancing the key areas that matter most to buyers, you can enjoy a more successful and profitable resale.
To explore the possibilities for your property or to get expert advice on maximizing your resale value, reach out to the Shannon Murree MovingSimcoe.com team today. We’re here to guide you through the process and help you make the most of your real estate investment Schedule a call with us here