To Renovate or Not….
Clearly renovating is an exciting idea.
It may be that moving is not your
best option. Your home has - for the most part - served you
well. It is in the right neighbourhood, you have friends in the
area, but it just does not meet your physical needs. Renovating may
be your best and even least expensive choice.
considering the cost of selling, the move itself, redecorating the new
home to make it just right, (and the list goes on), you might do better
having a new home and not having to move.
Just remember that improving your property will not mean that you keep all
of the equity you put into your renovation at the time of your next
you a planning to stay in your home for five or more years it may be worth
spending $10,000 on replacement windows.
Depending on other factors, the average payback is 51%, so when you
sell you will gain about $5,000 in the home value.
However if you are staying less than five years, is it really worth
"Homeowners don’t want to spend a lot of money on home
renovation, but they do want to maintain value in their house as an
investment," says Bob Wade, AACI, President of the Appraisal
Institute of Canada. "Kitchen and bathroom renovations are always
important in terms of keeping a house modern, but a simple paint job to
improve the appearance of a house works well, too."
Below are the results of a recent survey on the value of
renovations when it comes time to sell. These were the top 10 renovation projects in their survey with the
One last warning: Be aware that
major renovations are stressful and some marriages have not
survived the process.
and decor, interior 73%
floor family room addition 51%
system replacement 48%
10 upcoming renovation trends
flooring upgrade in kitchen
bath separate from shower
of kitchen cooking island
interior paint colours
The following are the most requested
renovations and, coincidentally, those providing the best payback. The top
renovations - potential purchasers must be able to imagine taking shower
in your bathroom! Mould in the grout is easy to fix and paint on the
ceiling do wonders. The cost is low and the payback enormous,
Landscaping & exterior painting adds great curb appeal.
painting and decorating in neutral colours, upgraded mouldings, simple
window treatments, all are relatively inexpensive and add much to the
In most cases, the payback potential of
all the above could average 100% and better. In the case of kitchens,
payback as high as 200%, according to the Appraisal Institute of Canada
Other renovations offering good payback
potential - generally in the range of 50% - are main-floor additions
(family/great room), new windows and doors, new heating systems and
central air. The payback on basement renovation and finishing may vary
widely. Its hard to make a silk purse out of a sow's ear. Walkout
basements and basements with lots of natural light and good access from
the main floor would offer the best payback. Attic spaces in smaller homes
could provide low-cost additional living space and usually yield a good
return on investment.
The following offer little or no
payback and can even decrease in the value of the home.
while wonderful to some, are never great selling features. If you want
one, plan to not move for a long time to get the most enjoyment out of it
as possible. Generally they add very little to the value. If
the pool is in poor shape it most certainly will detract.
• A poor
do-it-yourself renovation, either poor in quality or design, will decrease
overboard in a small house in a low-end neighbourhood or a doing a major
basement renovation in a large house will give very little return when
compared to the money spent.