When it comes to selling your home, it's important to make sure it's in top condition to get the best possible price. One way to increase your home's value is by making some promising renovations that will impress potential buyers and set your home apart from others on the market. Some renovations have higher ROI then the others. Here below are few insights based on experience:
1. Painting (Expected Return on Investment: 90% - 120%)
Painting the whole house or at least the dull looking walls and doors is always considered a no brainer to facelift the house without breaking the bank. This is considered one of the cheapest and best investment to consider, if you’re looking to sell your home. Painting whole house can cost $2000-$7000 Depending on size of your home or condo. Your experienced real estate broker can help you choose the right contract for this job.
2. Bathrooms Addition (Expected Return on Investment: 90% - 120%)
If you just have 1 full washroom on second floor, space and plumbing permitted, you shall definitely consider doing this addition as this renovation is related to functionality rather then facelift. In a 3 Bedroom house, it is normal expectation to have 2 full washrooms on 2nd floor including one to an ensuite for Primary bedroom. In addition to this, upgrading existing washroom also pays back well. A modern and updated bathroom can be a huge selling point for potential buyers. Consider upgrading one of the tubs to a full glass standing shower or upgrading vanity and/or outdated fixtures or toilet seat or adding a double vanity. All depending on space and budget available. These changes can not only make your bathroom more functional, but they can also add significant value to your home.
3. Kitchen Upgrade (Expected Return on Investment: 70% - 90%)
Kitchen is often considered the heart of the home, and for good reason. It's where families
gather to cook, eat, and spend quality time together. Updating your kitchen can be a great
investment, and it doesn't have to break the bank. Consider swapping out old appliances,
installing new countertops, or even just giving the cabinets a fresh coat of paint. These
simple changes can make a big difference in the overall look and feel of your kitchen and
can help sell your home for top dollar. Make sure you don’t overspend as your kitchen can be redone in $5000 to even $50,000 depending on what you choose to do. Your experienced real estate broker can help you make the right choice without putting a dent on your budget.
4. Flooring Upgrade (Expected Return on Investment: 70% - 90%)
If you’ve old worn-out carpet on your floors and stairs, this will be considered an important renovation to consider as many buyers don’t even want to consider through out carpeted houses due to allergy reasons. You don’t need to go fancy with what you choose. You get huge variety of Vinyl/laminate flooring in market costing around $5/SqFt installed. Your experienced real estate broker can help you make the right choice without putting a dent on your budget. It will do same job as some exotic hardwood floors costing $20/SqFt.
5. Maintenance Related Renovations (Expected Return on Investment: 60% - 80%)
It is always a good idea to get a pre-listing home inspection and address issues which get uncovered. Looking at condition of your Furnace, A/C, Windows & Roof is most common things which Buyers look at when trying to judge how well a house is maintained. A worn-out roof and leaking window can only attract investor frame of mind who is looking for a bargain. You’ll end up discounting far more then the worth of these items.
Even if nothing is found in this home inspection, report will create credibility in front of prospective Buyers as a “Well maintained home”. If done by reputed home inspection company, many buyers may choose not to do their own home inspection i.e. one less hurdle to cross.
In conclusion, making promising renovations as above to your home can be a great investment when it comes time to sell. Big renovations like Basement etc have only 50% ROI so can be avoided as they not just take multiple months to complete but are very expensive too. However, these are general guidelines, each property is unique and appeals different category of buyers. Your experienced real estate broker can help you make the right choice of renovations which are most needed.
