Which items will add value to your home and help with resale when the time comes to sell?
The answer is: “Only the ones that future buyers will also want and be willing to pay for.”
As a general rule, choosing the functional over the merely cosmetic and choosing neutral over unusual or exotic will pay at resale. Taste and current trends can also affect the value of an update. Unusual colors have a limited appeal.
Which updates will add the most value to your home?
- Update your kitchen and/or bathrooms. Whether you need a minor or major remodel, updating the kitchen or bathrooms in your home will yield a high return on investment. Stay timeless with your updates, but also pay attention to trends.
- Increase usable space. Add an extra bathroom, upgrade or expand your kitchen and/or master bedroom suite, add more closet space, or convert an unused space to a more functional space, like a spare bedroom to a home office or basement into the ultimate hangout space.
- Lighten and brighten your rooms. Paint rooms white or with a light color paint to neutralize your space. Add skylights, windows, or French doors.
- Revamp the exterior. Updated landscaping will draw in buyers before they even walk through the door. Keep your shrubs, trees, and grass trimmed and tidy. Add a splash of color with vibrant plants or by painting the front door an eye-catching color. Consider a focal point like a flagstone walkway or a water feature.
When calculating the return on an improvement or renovation, consider the following. The typical home in your area assumes a certain level of finishing. You only increase the value of your property if you improve beyond that standard. Let's say you renovate your kitchen. To increase the value of your home, you would have to install a kitchen worth more than the neighbourhood standard. You would also improve the value of your home by the difference in value between a typical kitchen for the area and the kitchen you install, not necessarily the full retail price of the new kitchen.