Are you looking to renovate, or remodel your home? It is high on a lot of homeowners list. You may be thinking about selling soon and want to upgrade or have a limited budget and want to get the best bang for your buck. Well here is the list.
The best home improvements to increase value are bathroom, landscaping, a minor kitchen remodel, minor exterior improvement, adding a bedroom either in the attic or basement.
There are a number of different reasons that people enter the remodelling or renovating process. Here is a shortlist.
- More space is needed for a growing family
- Upgrade the decor or “feel” of a house
- Build more equity into the house
Many homeowners want to know, if I am going to do a renovation will it increase the value of my home? And if I have to choose between say a bathroom or the kitchen or the basement which one will cause the greatest effect on the resale value of my home?
What are the key factors in the Value of a Home?
First, it is important to understand the key criteria that go into the valuation of a home.
- Neighbourhood comparison.
- More often than not the starting point is to look at what the houses around your area have sold for, especially homes with similar key statistics like square footage, bedrooms, garage and the number of bathrooms.
- Where your house is located has a major influence on the price. A 2000 square foot house in Calgary is very different than a 2000 square foot house in Yellowknife.
- Square footage
- The square footage is a major part of the calculation, and more importantly how much space is usable vs wasted space.
- Build year and quality
- The age of your house is important because it speaks to the potential upcoming maintenance costs and the quality of the build.
- Upgrades and updates.
- This is where renovations and remodelling come in.
One of the best things that you can do to increase the value of your home is to do a minor or major bathroom renovation. Often people will evaluate a home based on the bathrooms. Many studies have said that you will get back over 100% of the cost of the renovation in the value of your home.
Landscaping and Exterior Upgrades
When people come to look at your house this is the first thing that they see. This will definitely make your house stand out in comparison to other houses in your neighbourhood. You can upgrade the front door, the garage door, the window trimmings nad the exterior plants to give your place a set apart and fresh look.
Don’t neglect the back yard too. People will usually have 3-4 houses that they are choosing between and will make offers on them. For your house to stand out making upgrades to the exterior can really help.
You can definitely get carried away with a kitchen upgrade, but people focus on the kitchen, it is something that they really pay attention too. HGTV says that you can expect to get back around 98% of your kitchen investment. In Calgary and Canada, we spend a lot of time indoor, especially during the cold winter months and the kitchen is a great place for family time and obviously for cooking.
You want to spend money on appliances and make sure that your kitchens look as contemporary as possible. Neutral colours are the best if your goal is strictly resale because it will appeal to most people. Don’t get too quirky with colours and styles as it will limit your market.
Something that can really set your place apart is forward-thinking for recycling and for pets. Most urban families are more responsible than ever now and want to contribute to the environment, so having a setup for this is a good idea.
Also, most families have pets, and if you are able to think about that in your renovations it will go along way.
One of the best things you can do is create more usable space by adding bedrooms or living space either in the attic or in the basement. Another bedroom can in most cases add up to 20000 onto the price of a home. Even though below-grade bedrooms and living space are typically not included in the square footage of a home unless it is a split level, it can significantly add value.