The RE/MAX 2021 Renovation Investment Report found that more than half of Canadians renovated their homes during the year, but only 16% explicitly renovated to increase their home's market value. Prepping a house for sale can require an investment to bring it up to current standards and help it compete in the hot real estate market.
Painting is an under-appreciated home improvement and was chosen as one of the top three renovations for return on investment in 18 of the 31 housing markets in a RE/MAX study. It provides a high return for a relatively low investment and minimal effort, and can be done yourself. When putting your home on the market, consider a professional painter who can help select the right palette, skim the walls, seal trim and repair minor damage before applying top-quality paint that's appropriate for each surface. It instills freshness and can flatter your home in ways you've never imagined.
ROI: A fresh coat of paint typically garners a 60% return on your investment.
By the Numbers: Budget for a 2,000-sq.-ft. home: approximately $10,000-$15,000
When renovating a home, it is important to ensure that the roof and windows are in good shape, gutters and drains are functioning properly, and the foundation is dry. Consider items like vinyl windows, a new roof, or waterproofing the foundation to prevent flooding and leaks. Buyers are wise to structural issues, and learning that a homeowner has done their homework and made the proper investments will go a long way in a buyer's eyes.
ROI: Renovations that will save home owners money in the long run will draw a higher return, around 75 per cent, depending on the scale of the reno.
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
Kitchen renovations like countertop refresh and appliance swap are among the top three renovations with the highest return on investment in 27 of the 31 housing markets in the RE/MAX study. Instead of shelling out upwards of $25-50,000, expect to pay about $3,000 for a quality stone and between $5-10,000 for quality slide-in or stand-alone set of kitchen appliances. Additionally, switch out cabinets or paint existing cabinetry to complete the kitchen refresh.
ROI: Kitchen renovations have the best return on investment, typically garnering a 75-100% return.
Flooring is the hardest-wearing element in any home and 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 the RE/MAX study, so it is important to invest in materials and installation that is done well. Quality of the installation is essential, as expensive hardwood floors can look terrible if they are lifting or there are gaps between planks, while inexpensive laminate from a big box store can look great when laid properly. Carpeting, however, is rarely a good idea, as buyers will think of carpet cleaners, and it can hold on to memories of previous homeowners. Instead, skip carpeting and remove it yourself.
ROI: Depending on the flooring you choose, the return is generally 100-150% of your investment.
By the Numbers:
Typical hardwood floor: $4 to $6 per sq. ft., plus $2 installation fee per sq. ft.
Typical laminate floor: $1 to $3 per sq. ft., plus $1.50 installation fee per sq. ft.
Renovations with a high return on investment can help you stay in a better position in the seller's market. By updating various areas of your home, you can live more comfortably and rest easy.
Planning to renovate? Contact me and let's pick out what renovations can have you sell for thousands above your wishing price!