How Much Do Home Renovations Cost?

When you are considering listing your home, one of the first questions that will come to mind is Should I renovate before selling my house? The truth is, some renovations will add the value you expect, while others may not have the impact that you expect.

This is why understanding which renovations are likely to add the most value to your listing price is key. This blog post will walk you through some of the best return on investment renovations.

Why Renovations Pay Off

The right renovations can increase a home’s appeal and perceived worth. They are meant to enhance your home’s appeal to buyers. When you are considering undertaking a renovation, you will want to keep in mind the trends and longevity of style. Fresh, mid-century modern and neutral-pallet homes are highly desirable properties.

Make Your Home More Appealing (and More Valuable)

Put simply, quality renovations will attract quality buyers. When you have completed renovations that send the message of timeless luxury and overall pride of ownership, you are more likely to attract qualified buyers.

These buyers will come to you with interest and potentially bring an offer to the table. Once an offer is on the table, there is a higher probability that the home will receive multiple offers when you have attracted the right buying pool.

Want to sell your house for top dollar? Find more helpful advice in these blogs!

The Best Renovations to Do Before Selling

There’s no universal list of renovations that boost your home’s value. Why? Every property is unique.

We always recommend consulting with a professionals, such as an experienced real estate agent and contractors/builders. They can walk through your home and provide an opinion of how to best enhance it before selling. When you have updated and renovated, your home is likely to sit on the market for less time than the average home in your neighbourhood.

How Much Should You Budget For House Renovations?

The cost of home renovation will depend on a variety of variables. This includes the materials you choose, the contractors you hire, the finishes you would like, the home size and the complexity of the project overall.

Kitchen Renovations

The average cost of a kitchen renovation in Guelph can range anywhere from $25,000 to $50,000. This varies depending on the finishes, the appliances, size and layout. These numbers are primarily based on the average for a detached home renovation. On average, the kitchen creates a 60-75% return on investment cost. Renovating the kitchen is one of the best renovations to do before selling, in terms of return on investment improvement.

First, the kitchen is one of the main hubs of the home. The kitchen gets used on a daily basis and has to be functional in order for you to perform the basic everyday tasks. Second, the kitchen is a statement to the quality of craftsmanship throughout the home. Since the kitchen is one of the primary rooms, having a classy and versatile kitchen makes a statement for what buyers can expect to see throughout the home. Third, a kitchen is a space meant to be shown off, through entertaining, family dinners and gatherings, you are likely to host guests and relatives over and will want to enjoy it.

Bathrooms Renovations

Now, let’s break down another functional room in the home, the bathroom. Bathroom renovations are one of the most common renovations done to a home before selling. Bathrooms are, of course, needed and used on a frequent basis. At the same time, they are also a space that needs to be functional, family-friendly, accessibility friendly and multipurpose. The average cost to renovate your bathroom is a fraction of the cost to remodel your kitchen.

On average, a bathroom renovation costs anywhere from $10,000 to $25,000. The return on investment (or ROI) for this space is very reliable, averaging out to 55-70%. If you are looking to increase the value of your home but not looking to do an entire kitchen remodel, a bathroom renovation is a great secondary option.

We recommend renovating the most frequently used, important bathroom. In many cases, this is the shared second-story bathroom or the primary en-suite bathroom, depending on the current updates, and age of your home.

Basement Renovations

Another important space in the home is the basement. There are many ways that you can finish off a basement space without breaking the budget. First, make sure that you renovate with quality and safety in mind. You do not want to cheap out on key components such as drywall and insulation.

Flooring, lighting and the floorplan are also main factors impacting budget. Basements that have a large rec-room style space benefit from being used as a secondary living/ multi-purpose space. If renovating the entire basement is not in your budget, then start with the aspects that need the most improvement, and will have the greatest impact to prospective buyers.

On average, a basement renovation costs $35,000 to $65,000. The reason for this large gap in cost is it really depends on the size, finishes required, and layout (if there is or is not a bathroom). Renovating the entire basement, in some cases, does not make sense for the purposes of selling. Whereas in other cases, the basement will provide the most value as a completely finished space. Consulting with your real estate agent can help you determine the best use of your renovation budget and what rooms to invest in, to get the optimal return when selling you home.

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Small Upgrades With Big Pay Off

We should also discuss the most practical updates and home renovations that bring value to your home and attract qualified buyers. Here are some easy home fixes you would be wise to complete before selling:

Painting

Painting has one of the largest return on investment probabilities. With 70-80% of home sellers benefiting from touching up and repainting walls and trim. Think about it, the colour of a wall sets the tone for the entire feel of the room, which can either create excellent or poor impressions depending on taste and trend.

Interior painting can cost anywhere from $500 to $3,000 or more. It depending on the size of your home and the current condition will determine what work is needed. Such as if paint or wallpaper needs to be stripped, or if there is damage or are holes to fill.

Touching Up Outdoor Spaces

Now what about the outside? Previously, we have touched on the value of the exterior when it comes to photos and cinematography… But how much value does this bring?

On average, an outdoor renovation with the inclusion of increased outdoor living space, modernizing existing space and focusing on landscaping can increase the value of a home from 60-80%. The exterior of a home is what invites the buyer in. This is why curb appeal is so important, and ensuring that your home is photographed in a way that reflects this can make a huge difference.

Renovations to Avoid

Now, what about the renovations to avoid? There are some renovations that are not going to assist in selling you home, and some that can hurt its marketability. So let’s break this down.

Being Too Unique

Homes with bold paint choices and highly personalized touches are less appealing to the average buyer. When a home is so unique to the point that it is niche, it will create a large gap in the market for your home. This is why we recommend all renovations are done with a broad appeal to the buyer pool, and have a perceived ROI that benefits the client.

Luxury Add-ons

Another area where home builders and owners fall short is in the addition of luxury add-ons. Choosing to add these elements will make the home more appealing and comfortable. However, not every luxury element is needed, especially if the home does not exude the elements of structural luxury.

Pools, home theatres, security systems, gateways, heated driveways, luxury lighting and custom finishes will look beautiful, but may not be practical. It’s important to consider your buyer pool and the location of your home/neighbourhood demographics. Having a trusted and experienced local Realtor who knows the market can help you determine what upgrades make sense and will add value to your home.

Should I Renovate Before Selling My Home or Sell As Is?

First, always rely on trusted professionals to help determine if the renovation is going to add value. Then you can proceed with the renovation and get the home ready to enter the market. DO NOT renovate your home if the cost of the renovation is more or close to the margin of profit.

If you are concerned about how renovations can add to the value of your home, contact us today for a free Comparative Market Analysis. Our Capstone REPs can show how your home’s value may shift or not shift with the consideration of renovations. We would love to offer you a pre-listing consultation with one of our team members to help you navigate your next steps.

Selling your home? We can help! Reach us by email at info@capstonereps.com or call 519.824.9050.

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