Friday, 28 April 2017

Home Renovations with the Best Return on Investment

Written by Posted On Monday, 30 January 2017 04:45

Does your home need updating? If you plan to stay put for the rest of your life, then spend as much as you want to create the home of your dreams. However, if you’re like most of us, and a sale is either planned or potential, then you ‘ve got to be smart with how you invest your home renovation budget. Statistics show that these home renovations have a high ROI at resale.

Enhance Curb Appeal
You want potential buyers to be thinking, “this one’s got definite potential!” as they pull into the driveway. Get an edger and use it. Ditto for pruning shears, if bushes need a trim. If the shrubbery is overgrown, remove it and replace it with a flower bed dotted with small shrubs.
Have a realtor evaluate the outside of your home or get opinions from friends who’ll be honest with you. What does the outside need? If the home has aluminum or vinyl siding that is in poor condition or is a colour that stopped being “in” years ago, start there. Fresh paint or stain is a cost-effective choice for wood siding.

New Front and Garage Doors 

The front door is the focal point of the home from outside, and replacing it can have excellent ROI if the old one is ugly. Replacing an older garage door is a smart investment too. Home buyers will want an attractive garage door with style befitting the home, but savvy shoppers will also explore how well it functions. A new door that opens and closes smoothly is a definite plus.

 

Paint that is Neutral yet Modern

If interior walls are dirty, nicked up or dotted with nail holes where items were hung, patching and painting should be at the top of your list for interior home renovations that boost home value. Choose neutral colors but those that are trending. Browse Pinterest and home interior magazines for ideas, or ask the knowledgeable staff at your local paint store for paint colour suggestions.

A Modest Remodel of the Kitchen

Many families spend more of their daytime hours in the kitchen than any other room. It’s got to be up-to-date and attractive. A modest kitchen remodeling budget will give the space a fresh, new look but won’t be an expense impossible to recoup at resale. Martha Stewart, a woman who loves a nice kitchen, suggests spending just “5 to 15 percent of your home’s value for a kitchen renovation.” If you shoot for 7 to 10 percent, you’ll hit the sweet spot of spending enough to make it fabulous but not going overboard. How does Martha recommend spending the kitchen remodeling budget?

 

  • Cabinets –- 40 percent of your budget
  • Labour (including plumbing) –- 25 percent
  • Countertops –- 12 percent
  • Appliances –- 8 percent
  • Flooring –- 7 percent
  • Lighting/electrical –- 4 percent
  • Wall covering –- 3 percent
  • Miscellaneous –- 1 percent

Add a Bathroom (If you Only Have One)

The pros at HGTV state that homeowners with just one bathroom can recoup up to 130 percent of the cost of adding a second bathroom. To get the best ROI, turn existing space into a bathroom rather than putting on a home addition, and do it for less than five percent of the home’s value. If you’ve got two bathrooms, adding a half bath convenient to areas in which you entertain offers good ROI too.


Increase Energy Efficiency

Replacing old, drafty windows with Energy Star windows will cut energy costs and boost the good looks of your home. Sealing all doors and windows and adding insulation to the attic, basement or crawlspace will lower energy bills. You might have to point out the enhanced insulation to potential buyers. If you install the seal the home and install insulation a year or more before you sell, you can also show off the recent energy bills with their lower costs.

Sell Smart, Buy Smart

There’s no doubt that these renovations increase your home’s value, so it will sell more quickly and at a higher price. The question is, when you do all these fantastic updates, will you still want to sell? If selling your home remains a necessity or choice, you will get an education from remodeling that will make you a wise shopper, and you’ll be more satisfied with the new home you choose.

 

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