What Affects the Resale Value of a Home? The Answer May Surprise You!
Find out the Best Kept Secrets to Increase your Home's Worth
Do you know that the average home in Canada will sell for two-thirds of its original purchase price after five years? The longer you keep your home WITHOUT RENOVATING it, the more likely it is to reduce its value over time.
According to the experts, a little TLC could result in a whole lot of green. It’s no secret that home renovations have the potential to drastically increase the resale value of your home in Ontario.
If you’re entertaining ideas about the kind of renovations that will really give you a bang for your buck, this article will give you some great ideas.
buy or sell your home?
The benefit of Home Renovations
We all want to own a home with a great resale value, but there is something that holds us back. The sinking feeling that we might be overspending on something that will not increase the market value of your home when we come to resell it. But where some people lose hope, others find a way to get the most out of their property.
Let us share the story of our clients, Todd and Sara, from Kanata, Ottawa.
Todd and Sara Smith wanted to sell their 3,100-square-foot house, built in the 1970s. They purchased it in 2000 and made a number of improvements. Before planning to sell it in 2010, they refinanced and did renovations, including family room expansion, new doors, kitchen remodelling, and new windows.
The couple, who lived on a street full of custom homes, also did landscaping and installed new walkways and a garage door. Plus, they remodelled an office, bathroom, and utility room. These renovations increased the property value of their home as they expected. They sold the house for $240 per square foot, a significant increase from what they paid in 2000.
Their story indicates that a home renovation can result in a higher resale value. Furthermore, the trends in the housing market change quickly, so you should invest in the right kind of renovations to get a higher price.
Factors Affecting the Resale Value of a Home
The following are some recommended renovations that can attract a prospective buyer and increase your home’s resale value.
1. Painting
No paint, no gain? You might think so. Painting is the easiest form of renovation that results in the highest form of return on investment!
That’s because it can be done quickly and easily, with minimal disruption and mess. It’s also a low-cost way to transform your space into a home you love. In fact, the average home goes up in value by $15,000 after being painted!
And since we’re all about helping you get the most out of your home, here are a few tips to paint your home.
First things first-choose a professional painter who knows what they’re doing. They’ll choose the right palette for your space and skim over the walls so that any minor damage is addressed before applying top-quality paint.
It’s important to remember that even if you have great taste, choosing colours without professional guidance can be tricky! A good rule of thumb is to use paints appropriate for each room, like matte for the living room and semi-gloss for doors and windows.
2. Structural Repair
Your house is an investment, and you want to make sure it’s in tip-top shape before you try to sell it.
If water pipes are leaking, gutters are not functioning properly, or the foundation is not waterproofed, it reduces the resale value of your home. Even if they’re not directly affecting your family’s enjoyment of the house, they will affect whether or not someone else buys it.
So invest in things like vinyl windows, a new roof, or even waterproofing the foundation! In a few years, you’ll be grateful that you did.
3. Doors and Hardware
If you want to increase the resale value of your home, invest in the doors and hardware.
The door is one of the first things a potential buyer sees, so it’s important that it’s well-maintained and looks good.
Use a wood finish for the exterior and interior doors, as well as for any cabinets in the bathroom or kitchen. The paint should be well-coated with no visible cracks or chips.
Make sure that all of the doors open and close properly-they shouldn’t stick or make noise when opening or closing. Make sure there are no holes or gaps around the door frame where it meets any other surfaces such as walls or ceilings; these can be difficult to fix after they’ve been there for some time!
If necessary, use weather stripping around doors that stop airflow from outside into your home; this will prevent heat loss during winter months while also adding an extra layer of insulation between two rooms within your house!
You’ll want to replace hardware if it doesn’t look new (even if it isn’t old enough yet). If you have locks on your doors, then make sure they’re working properly; deadbolts are great because they allow you to lock them both from inside as well as out.
4. Kitchen Upgrades
If you want to sell your house and make a nice profit, you should definitely invest in a kitchen remodel.
That is right. The kitchen is the most important room in the house when it comes to resale value. It’s also the most expensive room to remodel, so if you’re looking for an easy way to make money as a homeowner, this is it!
If you don’t want to do it yourself, there are lots of companies that specialize in kitchen remodels. They’ll help you choose colours and materials, install appliances and fixtures, and design layouts that will appeal to buyers.
According to Zillow, a homeowner can expect to recoup 92% of the cost of a kitchen remodel when they sell their home. In fact, Zillow says that remodelling a kitchen is one of the best investments you can make in your house-it’s cheaper than adding an extra bedroom or bathroom and has almost as much return as upgrading countertops.
The kitchen is the heart of the house. It’s where families gather and spend time together. So if you’re thinking about making some changes, it’s worth it!
5. Bathroom Renovation
A bathroom renovation can be a big investment, but if you’re looking to sell your property in the future, it’s worth investing in. A bathroom is one of the first things potential buyers will see when they visit your house, and it’s also one of the last things they’ll remember when they leave.
So if you’re planning to sell your home at some point, why not make sure that every aspect of your bathroom shows off what a beautiful home you have?
First, consider what kind of focal point you want for your bath. This could be anything from a luxurious bathtub or shower stall to a simple but elegant sink area with a mirror above it. Whatever it is that makes this room stand out as special, start renovations from that point and work backward.
Replace fixtures with modern ones and add colour with accessories like towels or artwork.
You’ll also want to include energy-efficient appliances like low-flow toilets and water-saving showerheads if possible.
6. Flooring
Do you want your house to get a good resale value? Do you want to sell it for more than what you bought it for? You can’t ignore the flooring.
It’s important that your hardwood floors are solid and flat, so no one will trip over them when they visit your home.
Carpets are also a good idea-they’re soft, warm, and cozy. But they’re not always practical: they can be hard to clean in a house full of kids, dogs, and a never-ending stream of visitors. Some buyers don’t like them because of the maintenance they require.
If you’re looking for something more permanent than linoleum or laminate flooring, it can be tough to find something that will last through all the abuse a busy home takes on a daily basis.
One solution that works well for many homeowners is installing bamboo flooring.
Bamboo is made from renewable resources like grasses and trees-meaning it’s both eco-friendly and long-lasting. You can choose from several different colours and styles depending on your taste or decorating theme. Because bamboo is so durable, it will stand up to pets who love to dig their claws into everything they see!
Key Takeaway
Who would have thought that a home’s resale value could hinge on door knobs? Little things like these are often the difference between a great home and an average one.
Having your home look like it was just built is essential in order to gain the maximum return on your real estate investment, so make sure to read our guide above and get to work.
Short sales and, especially, foreclosures on your street reduce the value of your house. Even though they are not exactly comparable properties in terms of square footage and number of bedrooms and baths, they are your nearby neighbouring homes and can cause the entire area’s value to decline.
An appraiser might estimate the value of your home less than your neighbour’s due for several reasons. One reason could be the fact that your neighbours have frequently updated and renovated their house while you have been ignoring it. Other reasons that impact the value of a home could be the home’s curb appeal, the number of rooms, and the area of the house.
New appliances greatly add to a home’s value and improve the possibility of going over the asking price.” Updating utility room appliances may also be a rewarding investment when it comes time to sell your property.
Yes, it does! Adding HVAC to your home can increase your home’s value by as much as 10% for every $1000 you spend on a new system. That’s because the cost of energy is rising-and people want to live in cool, comfortable houses-so, a well-installed HVAC system will make your home more desirable.
The answer to this question is a big fat “it depends.”
It depends on the condition of your neighbour’s yard, and it also depends on the condition of your yard.
If you have a beautifully manicured garden and a well-kept lawn, but your neighbour has an overgrown jungle of weeds, it probably won’t affect the value of your property at all. However, if both of you have messy yards and neither one of you takes care of them, then it could definitely impact how much your home is worth when you go to sell it.
In short: It all comes down to whether or not you can afford to maintain your home’s appearance while also maintaining its value. If not, then maybe it’s time to consider hiring a landscaper or hiring a lawn service.
A fence can affect the value of a home in many ways. For example, if you have a chain-link fence, it may reduce the value of your property by 10% or more because no one wants to live next to a prison.
If you have an ornate wrought iron fence, it could add up to 40% to the value of your home as long as it’s properly maintained and doesn’t look like it needs a paint job.
A wooden fence might increase the value of your property by up to 70%, especially if it’s painted white and looks like something out of an old movie.
And finally, if you decide not to put up any kind of fence at all… well, then your house will be worth exactly what someone is willing to pay for it!
A few home renovations do not increase the home resale value. Some examples are the following:
- Tearing down walls to make the home more open and airy. We’re all for a nice, open floor plan, but if you’re going for resale value, it’s probably not the best idea.
- Adding a second bathroom. If you think about it, most people only need one bathroom-and adding a second might make your home more expensive to heat and cool.
- Adding a pool. Yes, pools are awesome (and we love them), but they can be very expensive to maintain and repair when they break down or need repairs. Plus, they’re hard to clean!
It depends on the home. For example, we had one client who did a major kitchen overhaul that included painting all of the cabinets a bold red and installing new countertops and fixtures. The effect was amazing: the kitchen jumped off the page when she put her house on the market. But if you don’t like red kitchens, then maybe that’s not your best bet.
Another client decided to rip out their old carpeting and put down hardwood floors in their bedrooms and living room, and it made an incredible difference! They didn’t just get back more than they spent on materials; they got an extra several thousand dollars from their sale because of how much better the space looked with new flooring.
It is hard to mention one single upgrade that can make a difference, as it varies from one situation to another.
