While it’s not uncommon for homeowners to want to spruce up their property before putting it on the market, the key thing to remember is: not all renovations are created equal. In fact, some remodelling projects may end up costing you in the long run in terms of sale price and your overall return on investment (ROI).
If you’ve been thinking of improving the resale value of your home with a few remodelling projects, here are our top best (and worst) recommendations:
Home Renovations With the Best ROI
1. Stone Veneer
Manufactured stone veneer is an eye-catching way to improve your home’s exterior. Used as an accent (in replacement of siding), this easy to install material is affordable, durable and proven to deliver over a 95% ROI.
2. A New Garage Door
Nothing will turn buyers off faster than a dingy, dirty and damaged garage door – especially if you own a front attached home, where the garage takes up most of the exterior façade. Next to the addition of stone veneer, a garage door replacement is your second-best bet, with an ROI of 94.5%
3. A Minor Kitchen Remodel
Keep in mind "minor" doesn’t mean re-building an all-new chef-inspired kitchen from scratch. It does mean replacing old and outdated hardware, adding a fresh coat of paint, making sure appliances are up to date and in excellent working order (preferably, all matching) and replacing or resurfacing countertops and cabinetry, if necessary.
Home Renovations With the Worst ROI
1. Master Suite Addition
Of course, adding bedrooms of any kind to your home will likely increase its resale value – especially a master bedroom and an ensuite. That being said, going all out with a luxury shower and tub, oversized walk-in closet, coffee bar, lounge area and reading nook may be worth it to you (in terms of enjoyment of your home), but don’t expect to recoup any more than 51% on your investment.
2. An Over-the-Top Entrance
There’s nothing wrong with replacing your front door to create a little extra curb appeal come sale time. However, altering your entryway to do it (i.e. broadening your doorway to include side and top windows and/or a larger door), while relatively inexpensive, remains one of the least profitable renovations you can make, with an ROI of only 53%.
3. Bathroom Addition or Major Remodel
We’re talking about a larger-than-average bathroom, complete with the works: a large soaker tub, ceramic tile, in-floor heating, double vanities, a luxury walk-in glass shower and high-end fixtures. Here again, this type of renovation may be a worthwhile expense to take on for the sheer enjoyment of your home, but you’ll only recoup 54% - 56% of the cost.
For additional home-related info, don’t forget to check out our blog! And for expert mortgage advice, tips and guidance, we invite you to get in touch with us.
*Best and worst ROI information provided by Remodeling 2020 Cost vs. Value Report
Photo credits: shutterstock.com
