Payback on Home/Property Updates & Renovations
With a renewed and very strong acreage market over the last few months, sales have increased and values improved to very healthy levels compared to the last several years. In some cases sellers have been able to sell properties without too much resistance even if their homes and property had some areas requiring work or updating and not in ideal locations largely because of the recent strong demand.
If you have not decided to sell this year but are planning to do so in the near or distant future you might want to take stock of the condition & appeal of your home/acreage and plan for either minor renovations or some major projects to both enjoy until you do sell and generally improve your property’s marketability when you do go to market.
Included below is a list of minor & major improvements/updates/renovations as well as a chart of corresponding average payback value ranges for various renos undertaken to help you choose areas to work on that may provide the greatest return.
Minor renovations to consider:
If you don’t have the resources to undertake more major ones consider some of the following as they will still improve your home’s appeal & presentation.
- Front entrance area – The impression coming into your home is critical and sets the attitude of buyers. Consider a new quality front door & hardware and paint it a bold color. Replace front steps if old and worn with an appealing composite material.
- Remove dated wallpapers
- Paint any odd color rooms to bring more neutrality & consistency if you cannot afford to paint the entire interior of the home.
- Replace any badly worn carpets and certainly replace carpet in any rooms with old out of date colors.
- Refinish hardwood flooring that is looking tired and badly worn.
- Paint kitchen cupboards if older, dark wood.
- Change out countertops and backsplash in older kitchens.
- Replace old faucets.
- Replace older light fixtures.
- Stain or paint decks and replace if wood has deteriorated.
- Clean out, de-clutter and organize storage areas and garages, utilizing effective shelving and storage systems.
More major renovations:
If you have the resources and want to enjoy an updated home, consider these key areas that bring strong returns.
- Paint throughout home in modern colors.
- Replace aging roof with a quality material.
- Update kitchen, appliances and bathrooms.
- Do a front entry redesign.
- Do a modern basement development if basement is old or undeveloped.
- Replace older furnaces and HWT’s.
- Do a wood fireplace conversion to a modern style gas one.
- Upgrade windows if they are getting old and showing age with broken seals, leaking frames, and generally deteriorating.
The list below is quite enlightening and informative. Whether you are planning to sell your home soon, stay put for awhile, or are contemplating purchasing an investment property as a “fixer upper”, you’d probably rather have any improvements you make add as much value as possible to your home/property. Here are some projects for which the Appraisal Institute of Canada’s members project what the average payback value ranges would be.
20 Most Frequent Reno Projects And Paybacks Were:
- Bathroom renovation (75-100%)
- Kitchen renovation (75-100%)
- Interior Painting (50-100%)
- Exterior Painting (50-100%)
- Roof Shingle Replacement (50-80%)
- Furnace/Heating system (50-80%)
- Basement renovation (50-75%)
- Recreation room addition (50-75%)
- Installing/updating a fireplace (50-75%)
- Flooring (50-75%)
- Constructing a garage or adding a second garage (50-75%)
- Window/door replacement (50 -75%)
- Building a deck (50-75%)
- Central Air conditioning (25-75%)
- Landscaping (25-50%)
- Interlocking paving (25-50%)
- Building or replacing fencing (25-50%)
- Asphalt paving (20-50%)
- Adding a swimming pool (10-40%)
- Installing a skylight (0-25%)
My personal opinion after almost 30 years in Real Estate and having dealt with numerous sales, the condition of and quality of windows usually got the most scrutiny by buyers and home inspectors. I would recommend if you spend money on any one major item, particularly if your windows are aging and any are problematic, that it is on the installation of a quality window package.
Wayne Chaulk
Real Estate Agent
www.chaulkrealestate.com
