Whether you’re prepping your house for sale, or upgrading items and areas to improve your living quality, it’s important to always consider the capital return on the investment you’re making in the property. Regardless of project size or complexity, every property enhancement will work to increase the value of your home. This article is going to explore the various home improvement projects available and the best roi renovations associated, ensuring that you’re able to focus your efforts and dollars on the right area.
Kitchen
As an extension of the countertop remodelling discussed above, a complete kitchen renovation will see a change to the entire space – including counters, flooring, cabinetry, paint, appliances, and more. As the focal point of many homes, a kitchen renovation will be an integral part of the atmosphere, and it’s an incredibly important element of the selling price of your home. Although the most expensive of any renovation projects available – ranging anywhere from $25,000-50,000 for completion – kitchen renovation projects are known for providing one of the best renovations that add value to your home. One item to consider is that kitchen renovations are no small feat, and most projects take weeks, if not months to complete. It’s important to consider the implications of this on your lifestyle and home usage prior to jumping into the project purely for the investment return opportunity.
ROI Insight: If you’re working with an expert contractor on your kitchen renovations, expect the investment to yield a 75-100% return on the money you put into the project.
Flooring
Your home’s flooring will be one of the most worn-out, yet most visible elements to a potential buyer, and it’s incredibly important to replace aging flooring if your hope is to maximize the value at sale. Selecting the right kind of flooring for your home can be very difficult, with hardwood flooring looking very poor if gapped and raised due to improper installation, laminate flooring looking cheap and ill-constructed if improperly installed, and carpet looking often outdated and dirty. It’s advised that you go the route of hardwood or laminate with the support of a professional flooring specialist, avoiding carpet at all costs.
ROI Insight: When completed well, flooring will prove to be one of the best return on investment home improvements, averaging between 100-150% return on investment. You can expect a new hardwood floor installation to cost $4-6 per sq.ft. for material with an additional $2 per sq.ft. for installation. Laminate will cost you closer to $1-3 per sq.ft. for material, with labour running in the range of $1.50 per sq.ft.
Finishing Basement
Finishing a basement can be a time-consuming, costly task to undertake. However, there are several advantages to consider and it has one of the highest home improvement return on investment rate for a good reason. Potential buyers are much more attracted to a home’s interior if the basement is finished because the work has already been done. You’ve saved them the trouble of having to plan, obtain permits, hiring contractors, installing insulation, protecting against moisture, waiting for materials to arrive, in addition to several other hassles you’ve alleviated.
ROI Insight: The average cost to finish a basement is anywhere between $50-$90 per square foot. Depending on the size of your basement, your choice of finishes, and if there is an added kitchen, bathroom, or bedroom, costs will vary accordingly. Remodelling Magazine has reported, expect to see a 75% ROI for homeowners undergoing a renovation project to finish their basement.
Bathroom
Establishing one luxury bathroom in the home will help plenty when it comes time to sell. For this renovation project, focus on large items such as frameless glass showers, marble counters, and the like. Utilizing the space will be incredibly important to creating a welcoming environment that potential buyers love, and if done right, you can generate a more than modest return on the $5,000-15,000 you’ll need to invest in the project.
ROI Insight: When completed with care and detail, the best renovation ROI you can expect from a bathroom renovation will average 62%.
Landscaping
The outside of the house is one of the best places to see a return on investment because increasing the curb appeal of your property will better your chances of selling your home. If your home’s exterior is unappealing, then people will be less inclined to see the inside of your home. Adding new landscaping features such as a fence, a fire pit, a flower bed, a water fountain, or simply improving the condition of your lawn by trimming or cleaning up grass lines could be just what your home needs to appear more inviting and look fresh. The backyard may be the first design element buyers see and certainly the front yard, so making a good impression on first arrival is so pivotal. At its most effective, curb appeal captures the attention of buyers viewing the outside of your home and in turn, drives interest if they want see more inside.
ROI Insight: Landscaping is ranked as one of the highest documented home improvement return on investment projects. The average cost is $4,900 and with an average return of $4,900, you can’t get much better value than a 100% ROI.
Garage Door Replacement
In addition to the functional and aesthetic reasons of why replacing your garage door is beneficial, more protection and security, superior insulation, reduced maintenance, and more visually appealing, garage door replacement delivers an exceptional ROI. This is because of the curb appeal a properly installed and well-maintained garage door brings to the home’s market value. Garage doors take up a large portion of a residential property’s visual real estate, so a well-conditioned door that complements your home adds to the overall appearance of your property and increases its value on the open market.
ROI Insight: Remodeling Magazine’s annual Cost vs. Value report has answered the question, “What adds the most value to your home?”. They have reported replacing your garage door is one of the best ROI renovations homeowners can make. A garage door replacement can cost under $4,000 and the overall average recouped cost in 2020 was 94.5%, with some homeowners seeing a ROI exceeding 150% and even 200%!
Entry Door Replacement
This may seem like one of the more simple home improvement projects however, replacing your entry doors can have a big impact. Similar to landscaping, the entry door is one of the first features of the house a buyer will see and interact with, therefore, making a memorable first impression while trying to sell your home is worthwhile. Most people only need a few minutes to look at the outside to decide whether or not they want to proceed with viewing the inside before making an offer on the house. To capitalize on the potential intrigue of buyers, increasing curb appeal through entry door replacement is in homeowners’ best interest.
ROI Insight: The average cost of entry door replacement is $1,410 and with an average return on $1,280, homeowners can expect to see a resounding 90.7% return on investment.
Now that you know what adds value to a home, you should be able to undertake home renovation projects with the confidence that they’re going to be completed on time, in budget, and to your satisfaction. Aria Build is a custom home development and renovation company with over a decade of experience, servicing clients all throughout the GTA and surrounding areas.
To learn more about our team and services, or to get a project quote, contact us today!