 When it comes to home renovations, one plus one does not necessarily equal two. The money invested in improving your home will not always translate into an equivalent return in the selling price of your home. However, with planning it is possible to both increase the salability of your home and even profit from your home renovations.
Although you can find many charts offering rates of return for specific renovations I have found this useful tool on the website of the Appraisal Institute of Canada to find out the value that major renovations will add to your property.
Renovations do not have to be extensive or expensive to earn a high rate of return. In fact, one of the cheapest and simplest improvements yields one of the highest paybacks. According to a study (1999 Renovations and Home Value Survey) by the Appraisal Institute of Canada (AIC), a fresh coat of paint on interior walls returns an average 73 percent payback. So, a $1,500 paint job could be expected to increase a home's selling price by $2,625 (a $1,125 profit).
From a real estate point of view it is important to remember that the quality of work that you do (or have done for you) is extremely important. Buyers will be looking for quality renovations and finishings and they will add a negative value to your home if the completed work doesn’t look professional.
Also, although individual situations may vary for homes of a certain age making sure that the unglamorous but essential updates such a updated roof shingles, upgraded windows and newer heating and cooling systems have been done will go far with many home buyers.
For an experienced
opinion on the value of your home renovation in terms of resale
we would be happy to provide advice prior to you making your
final decisions. We also believe it is important to remember
that your house is your home. In some cases a well-chosen renovation
may not add a large monetary value to your home but it may certainly
increase your pleasure and enjoyment while you live there. A
house is more than an investment—it’s your home!
|
