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Top 10 Renovations

There is always a slight difference of opinion on the return to the seller. But basically, the top 10 remain fairly close regardless of whose survey the information has come from.

The Canadian Home Find Seller's Guide has a whole chapter dedicated to this topic, as well as a closer view of which renovations actually increase the value of a seller's home.

The attached surveys are supplied by outside sources, and are fairly similar in general, and come from very reputable organizations.

The Appraisal Institute of Canada:

-    Painting and decor, interior - 73%

-    Kitchen renovations - 72%

-    Bathroom renovations - 68%

-    Painting, exterior - 65%

-    Flooring upgrades - 62%

-    Window/door replacement - 57%

-    Main floor family room addition - 51%

-    Fireplace addition - 50%

-    Basement renovation - 49%

-    Furnace/heating system replacement - 48%

Most common renovations being done

-    Main floor laundry room

-    Ground floor home office

-    Hardwood flooring upgrade in kitchen

-    Whirlpool bath separate from shower

-    Built-in kitchen appliances

-    Addition of kitchen cooking island

-    Non-neutral interior paint colours

-    Smart house wiring

-    Home theatre room

-    Skylights

Expected Return (Range of Return)

-    Exterior Paint (50% - 100%)

-    Interior Paint (50% - 100%)

-    Bathroom Renovation (75% - 100%)

-    Kitchen Renovation (75% - 100%)

-    Furnace/Heating System Upgrade (50% - 80%)

-    Roof Shingle Replacement (50% - 80%)

-    Basement Renovation (50% - 75%)

-    Recreation Room Project (50% - 75%)

-    Install a Fireplace (50% - 75%)

-    Flooring Upgrade (50% - 75%)

-    Window/Door Replacement (50% - 75%)

-    Build a Deck (50% - 75%)

-    Construct A Garage (50% - 75%)

-    Install Central Air Conditioning (25% - 75%)

-    Build a Fence (25% - 50%)

-    Interlocking Paving (25% - 50%)

-    Landscaping (25% - 50%)

-    Asphalt Paving (20% - 50%)

-    Add A Swimming Pool (10% - 40%)

-    Install a Skylight (0% - 25%)

The National Association of Remodeling Industry:

Renovation    Average Cost Resale Recovery

Paint   $700, 200% plus

Add a Bathroom $10,000, 96%

Add a Fireplace $4,000, 94%

Kitchen Renovation (minor)  $8,500, 79%

Kitchen Renovation (major) $24,000, 70%

Bathroom Renovation $7,500, 69%

Add a Skylight $4,000, 68%

New Siding $7,500, 67%

Add Insulation $1,750, 65%

Addition $35,000, 62%

New Roof $4,600, 61%

Deck $6,000, 60%

Greenhouse Addition $17,000, 56%

Replace Windows/Doors $12,000, 55%

Add a Swimming Pool $24,000, 39%

Conclusion

If you are considering renovations, make sure you research your project carefully to ensure you are making a wise financial decision, able to do the job, have your pricing done accurately, and getting the most bang for your buck!

Remember some home renovations or improvements may improve the quality of life, but they may not increase the value of the home. The basic factors of value are still in full effect when it comes to pricing. If the hope you are renovated is in a low price range neighborhood, improvements beyond the neighbor's home will not increase or maintain the dollar for dollar cost you may have put into the home.

Example:

If you take an old home in an old neighborhood, spend thousands and thousands of dollars to turn it into an elegant palace, its value will still reflect that of the nice old home in the old neighborhood. The appraisals are done using comparable homes in the area.

The point is, when it comes to home renovations, don't try to be the best on the block. You may be overpricing your home for the neighborhood. From an economic point of view, make your home more than the second best in the area. The return is much higher.