Every year, RemodellingMagazine’s Cost vs. Value Report* reveals the average cost of common home renovations and compares them to the home’s final sale price (as estimated by qualified real estate agents). As a result, homeowners are better positioned to determine which renovations will deliver the biggest bang for their buck and which projects come up short on the cost-recouping scale.
According to the report, below are the top five best (and worst) home renovation projects for your money.
Best Return On Investment (ROI)
Manufactured Stone Veneer = 95.6% ROI
An attractive alternative to conventional vinyl siding, stone veneer consists of finely cut pieces of stone, available in various colours, sizes and shapes. Durable and affordable, this product is easy to install and tops the ROI list.
New Garage Door = 94.5% ROI
In front attached homes especially, the garage door is the first thing people see when approaching your home. For this reason, an attractive door free of dings, dents, dirt and scratches will automatically boost your home’s curb appeal to potential buyers.
Minor Kitchen Upgrade = 77.6% ROI
As the kitchen is favourited among buyers, a little remodelling is sure to go a long way. Minor renovation projects may include incorporating new, energy-efficient appliances, replacing countertops, refinishing cabinetry, repainting and/or reflooring,
New Siding = 74.7% - 77.6% % ROI
Just like a worn garage door (mentioned above), dingy, damaged siding is sure to turn buyers off. Even if your home is in great condition on the inside, visitors will see the exterior as a costly future expense they may not be willing to take on.
Vinyl Windows = 72.3 % ROI
Vinyl windows are affordable and durable. Even better, they’re energy-efficient, making them an ultra-attractive option for buyers who want to save on their utility bills.
Worst Return On Investment
Major Master Suite Addition 51.6% ROI
Recognized as the worst investment to make in your home, a high-end master suite addition (including a walk-in closet, master ensuite, custom-cabinetry, etc.) is predicted to cost no less than $37,000 Canadian. While that’s not to say it's not a worthwhile investment for your home's comfort and enjoyment, you’ll only recoup half the cost.
See the Appraisal Institute of Canada’s “How to Value Your Renovations”
Expanded (Fibreglass) Entryway 53.3% ROI
Larger, fibreglass entryway projects typically entail enlarging the home’s front door and surrounding space. While this renovation will give your home a grander appearance (and likely boost your curb appeal), your ROI won’t be as appealing.
Major Kitchen Upgrade = 54% ROI
A major kitchen remodel generally involves more expensive items such as custom cabinetry, granite or quartz countertops, an island addition, tile or hardwood flooring, etc. While a few kitchen renovations will be welcome (see minor kitchen remodel, above), the publication indicates you’d be better off putting more of your budget towards improving your home’s exterior.
Major Bathroom Remodel = 54.7% ROI
A major bathroom remodel implies renovating an existing bathroom to include high-end features such as a glass shower, freestanding soaker tub, twin sinks, new lighting, custom cabinetry and more. While it won’t cost you as much as a full bathroom addition (below), this project can cost upwards of $80,000 while delivering a return of only slightly above 50%.
Bathroom Addition = 55% ROI
Like a master suite addition and major bathroom remodel, an upscale bathroom addition will increase the comfort and enjoyment of your home but will likely cost you when you opt to sell. Meant to open onto a home’s master bedroom, this project involves adding a freestanding soaker tub, dual vanities, heated tile flooring, a luxury walk-in glass shower, ceramic tile, etc.
Are you thinking about selling your Edmonton home? Find out how much your home is worth with the help of our Free Property Valuation!
*Although Remodelling Magazine is a U.S.- based publication, similar ROI results are expected in Edmonton and throughout the rest of Canada.
Photo credits: shutterstock.com
Posted by Kevin Klein on
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