Adding Value To Your Home

Whenever I visit clients home to provide a market value the first topic that comes up is home improvements. Home owners proudly walk me through their home and share the renovations they’ve done and the money they've put into their homes. For the most part, the work adds considerable value but every now and again I have to be the bearer of bad news that they won’t see a good return on their investment. The key is to know where to spend. Just because you put $20,000 into renovations, it won't necessarily add $20,000 to the market value. If your house needs a new roof, you won't see a return on it for a while because people expect the roof in a house they're buying to be in good shape. The same can be said for your plumbing and electrical systems. Bad plumbing will detract from the value, but new plumbing won't necessarily drive up the price tag. The key to adding value is to focus on the things that are important to buyers, and to not over-improve.

Here, in no particular order, are some tips for how to get the best bang for your buck on your home renovations.

Kitchen: It is said in real estate that a kitchen can make or break a sale. It is often one of the most important things a buyer will look for in a property, after all it is the heart of the home where a lot of time is spent. When kitchen renovations are done properly, they can provide you an 80%-100% return on your investment. It’s important to spend and plan wisely without over improving for the market or your homes price range.

Lighting: Nothing makes a house look more drab and dreary then poor lighting. A little light and updating can go a long way in creating a brighter more open feel in a home. Older light fixtures can also make a home look very dated. By updating the fixtures especially in the dining room and kitchen it not only will brighten the space but create a mood and homey atmosphere.

Basement: Just think of all that extra square footage you have waiting to be a new rec room, man cave, or guest room. Finished basements are becoming one of the post popular features buyers look for in a property. It’s important to consult a professional in a basement remodel to ensure the space is well appointed and has a god flow.  Also, try to avoid adding a lot of walls or hallways, which will make the area, feel smaller and darker -- basements already tend to feel that way. Installing a gas fireplace is another way to make the area feel brighter and cozier.  

Flooring: Carpeting is out and hardwood flooring is in. One of the biggest changes in the past 20 when it comes to what buyers look for in a home is flooring. The days of “wall to wall” carpeting  being a selling feature is no longer the case. Buyers like the durability, easy cleaning, and streamlined look of hardwood flooring. Laminate is an excellent and more affordable alternative to hardwood. They key is choosing a is neutral colour and having it properly installed.

Painting: This is by far the most profitable renovation a home owner can undertake. Picking neutral tones and doing a good job is key. This simple, inexpensive way to freshen up a home is an easy do-it-yourself project, and it can dramatically improve the look and feel of a space at a low cost that you’ll usually see a 100% return on investment from.

Whether you're renovating to add value for resale or for your families own personal enjoyment, never hesitate to contact me for a second opinion how to increase your home’s value or recommendation on a local contractor at pennington.remax@gmail.com or 905-375-0062