Home Improvements and Return on Investment

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Homeowners are always looking for ways to improve their property’s value, but it is important to consider the return on investment (ROI) for a home reno. Let’s look at home renos from an ROI perspective…

  1. Boosting Curb Appeal-In real estate, first impressions really matter and set the mood for potential buyers. Enhancing curb appeal can increase a home’s value by up to 5% according to the Appraisal Institute. Investing in landscaping, repainting the shutters and trim, power-washing the siding and sprucing up your front door can all add value, but perhaps more importantly, will encourage buyers to visit your home in the first place.
  2. Revamping the Kitchen-The kitchen is a focal point for many buyers and can make or break a sale. Updating appliances, countertops, cabinets, backsplashes, and lighting will increase value. Kitchen renos offer an ROI of up to 70%, but also significantly increase the saleability of your home.
  3. Modernizing the Bathroom-According to Genworth Canada, bathroom renos can increase a home’s value by 75-100% of the reno cost. Consider refreshing the fixtures, faucets, tile, and lighting as bathrooms are another key focal point.
  4. Prioritizing Energy Efficiency-CMHC reports that energy-efficient homes sell for 10% more than inefficient homes. There are several granting programs that can help cover costs for new windows and doors, insulation, and heat pumps. Making these changes will add appeal to your home for environmentally-conscious buyers.
  5. Optimizing Living Spaces-Increase your functional living space and square footage by finishing basements or attics. Basement renos typically offer an ROI of 50-75%.
  6. Adding Outdoor Living Space-Outdoor living areas are coveted features given our beautiful scenic surroundings in the Shuswap. Consider adding a deck or patio to extend your living space. Well-designed outdoor living space can increase a home’s value by up to 12%.
  7. Upgrading Lighting and Fixtures-There are many new energy-efficient options to consider. Bringing in more lighting, whether artificial or natural is one of the most effective ways to show off your home and add value. Consider overhead lighting, task lighting and accent lighting to brighten your home.
  8. Freshening Up the Paint-A fresh coat of paint can work wonders. Use neutral tones to appeal to the broadest range of buyers. According to the Real Estate Network, painting can offer a return of 100-300% of its cost.

In a competitive real estate market, home improvements represent a great way to add value and increase saleability. And whether you are planning to sell or not, these home improvement tips can simply help you enjoy your home more fully. If you would like more in-depth information on how to best prepare your home for sale, please  email me at [email protected] to order a complimentary copy of my 99-page book, “Selling Secrets You Can’t Afford to Miss”.

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