In my last post: “Renovations That Pay Back: Part I,” I talked about how it’s important to consider choosing a neighbourhood that can support your renovations. It’s tempting for homeowners to go crazy with renovations, both design-wise and financially. But, before you start swinging the hammer, you want to make a plan that is focused on the bottom line. While you can definitely incorporate your own personal design taste (especially if you can see yourself living in the space for a long time) you want to concentrate first and foremost on the renovations that are going to see the greatest return.
According to National Bank, there are four renovations that pay back the most:
Kitchens and Baths
This is one of the first things a prospective buyer will notice. If it’s updated, it’s more likely they will consider the house as a viable option. Renovating a kitchen or bathroom is a big project for a prospective buyer to consider taking on.
Interior/Exterior Paint
You would be amazed at the difference a coat of paint can make. You'll likely be able to paint most of the interior yourself, but may want to consider hiring a professional for those “high to reach” places of the exterior, such as gables or second-storey windows. When choosing colors, keep it neutral. You want to appeal to a wide range of design tastes. By presenting a blank canvas of neutral colors, a prospective buyer can imagine tailoring it to their own aesthetics.
Heating
Upgrading to a high-efficiency heating system may sound boring, but it does pay back. Energy efficiency is becoming more and more of a consideration amongst homeowners, especially with energy costs continually on the rise. Have a high-efficiency furnace installed is a great, simple update.
Roof
Repairing or replacing a roof is a big project that you probably don't want to tackle. If that’s how you feel, a prospective buyer is going to feel the exact same way. Replacing an old roof may not have a dramatic visual effect, but it’s a renovation that offers potential buyers peace of mind and less of a reason to consider another property instead.
My advice is to make a plan and be strategic about your renovations. However, you also need to remember that just because a reno projects costs a lot doesn't automatically mean that it will pay back when you sell. Remember the homeowner in Seattle I talked about in Part I? Sometimes, less costly renovations, like interior and exterior paint, can have a dramatic effect on the remodeling of the space as well as the return on your investment.
If you are looking for a London, Ontario realtor who can recommend which renovations will have the most impact and yield the greatest return, get in touch so I can steer you in the right direction.
