We’ve consulted home appraisal experts and created a list of the top home improvements — from flooring to roofing and everything in between. Read on to find out which home renovation projects have the best return on investment.
The right improvements may help sell your home in a buyer’s market
It can be challenging to sell your home in a buyer’s market. With plenty of available inventory, potential buyers will likely have several options to consider in your neighbourhood. And with all other factors being equal — such as square footage, number of bedrooms, and location — the difference may come down to a smart investment in one or two renovation projects that boost resale value and help close the deal.
Having said that, you don’t want to invest thousands of dollars in upgrades or renos that you won’t recoup from the sale of your home. That’s why it’s important to consider renovation costs and the estimated return before you commit to any ambitious projects.
Handy home renovation ROI guide
Curious about the average costs of home renovation projects? In the battle between kitchen and bathroom renos, which one gets the better rate of return? The results may surprise you! Check out our handy home reno reference guide and find out which projects might be the best investment of your time and money.
The Home Renovation Shortlist:
Here’s the straight goods on some of the best ROI renovation projects by category:
- Exterior: Asphalt roof - 75-95%
- Interior: Paint - 80-110%
- Electrical/mechanical/plumbing: Electrical service upgrade (60-100 amps) - 90%+
- Landscaping: Fence (pressure treated) - 60-75%
- Garages, Sunrooms, Additions: Double-detached garage (heated, insulated, slab) - 60-80%
- Best overall bang for your buck: Interior painting - $3,000-5,000 with 80-110% ROI
Don’t let ROI rule your decision
Getting a good return on your home renovation is important, but it shouldn’t be the only factor you consider when deciding which projects to complete, materials, and overall budget. Here are a few other important factors to consider:
- There’s high interest in high efficiency upgrades. More homebuyers are looking for energy-saving features such as Low-E triple-pane windows, a high efficiency furnace, or a new, efficient water heating system. While you may pay more up front for these types of upgrades, homebuyers are increasingly appreciative of green choices and anything that helps reduce home energy costs and carbon footprint.
- Consider comparables. Before you make any big renovation decisions, take a look at similar homes for sale in your neighbourhood. Specifically, take note of the types of finishes and materials used in renovation projects and upgrades. Sure, it’s cheaper to install a plastic tub surround to refresh the en-suite bathroom, but if comparable homes feature a tiled shower and double vanities, you may need to boost your budget. On the flip side, don’t add a luxury, chef-inspired kitchen if your home’s location doesn’t support a considerable hike in list price. Spending more on renovations doesn’t always mean getting a higher price for your home — especially if it’s well out of the norm for the area.
Looking for more home selling tips and Edmonton real estate advice? Wally is here to help! With over 15 years’ experience as a top realtor in Edmonton and surrounding area, Wally’s helped thousands of clients navigate the home selling process through plenty of ups and downs in the Edmonton real estate market.
Call or text Wally today at 780.238.7384 or request a consultation online.