More often than not extensive home renovations, splurges or upgrades will cost you more money than it will return upon sale. When considering a home improvement renovation, there are 2 very important factors to evaluate when deciding your budget - The Value to you, & Resale Recovery...
#1. Value to you
Enhancing your home with a home improvement renovation may offer more value than money can provide. A beautiful outdoor living area to entertain on, a finished basement for the children to play, or that dream bathroom to help you unwind, all may contribute to a quality of life factor that only pride of home ownership can offer. This decision to renovate is based more on emotional factors and desires vs a healthy return on investment. For this type of decision, base your renovation and choice of materials on what matters to you: tumbled stone vs ceramic tile, a deep jacuzzi tub vs an inexpensive shallow fibreglass one, etc. The dollar value in this renovation will come from the years of pride and enjoyment.
#2. Return on Investment - Resale Recovery
Despite what the trendy home flipping television programs show, not all home improvement renovations and home upgrades will give you a large return on investment. Infact, more so than not, most home renovations give you very little return on your investment. Very rarely does a $10,000 home improvement renovation get you a $20,000 return. When considering a home renovation or upgrade for resale purposes, keep all costs in check and splurge only on the necessities. Choices in materials should be kept generic and cost effective with only the final sale figure in mind.
The following information is a range of the 20 most common home improvement renovations identified by a survey of the Appraisal Institute and verified by a survey of Kitchener Waterloo Home Owners through KWContractor.com. The goal of the survey was to determine, in the informed opinion of Canada's home improvement professionals real property values, and what effects these renovations have on the value of a home’s resale.
Please note: Home values and returns on renovation investments are dependent on so many factors such as the location of the property, i.e. rural/urban, the neighborhood and notably important is the quality of workmanship and materials. The following information is to be used as a rough reference only based on the reactions of 1000+ home owners surveyed.
Home Improvement Renovation Recovery
