Which Renovations Are Worth Their Cost?

There are at least two reasons for doing any renovation project :
• to increase the value of your home
• to increase the liveability of your home

It is very important that as part of your renovation planning you weight these two aspects.

Remember that the value of a renovation, like the value of anything, lies in the eyes of the buyer – so even though you place a high value on your decorating or design ideas, potential buyers in the future may see things differently. For this reason, you must carefully consider your motivations when starting your reno to ensure your investment in time and money provides you the best retune (in dollars and satisfaction).

Here are typical financial returns other renovators have realized on their projects :

Add a new bathroom

90%

Add a fireplace

90%

Interior facelift

90%

Remodel / update kitchen

75% - 85%

Hardwood flooring

75%

Add a room

60% - 80%

Remodel bathroom

70%

Add a wood deck

70%

New siding

70%

Replace windows

60%

Swimming pool

35%

 

Note that these values all assume that the quality of the renovation is top-notch.
Now matter how much a homeowner spends on their renovations, one cannot expect to get significantly more than the average price other homes are selling for in the same neighbourhood.