Renovating a home is a major investment, so naturally, homeowners are keen to ensure their upgrades will add value. When it comes to boosting your property’s appeal and resale price, some renovations consistently offer better returns on investment (ROI) than others. If you’re wondering which upgrades are likely to pay off in the long run, here’s a breakdown of renovations that can increase the value of your home and make it more attractive to buyers. Contact us to speak with a Kelowna Real Estate Professional for some suggestions on renovations to add value to your home.
1. Kitchen Remodeling
The kitchen is often seen as the heart of the home, and it’s one of the best places to invest in renovations. A modern, functional kitchen can yield a high ROI, especially if you’re able to make substantial improvements without going overboard on luxury finishes. Consider focusing on:
- Cabinet Refacing or Replacing: New cabinets refresh the kitchen instantly. Choose neutral colors and high-quality materials.
- Countertops: Granite, quartz, or marble countertops are durable and visually appealing.
- Appliances: Energy-efficient appliances not only appeal to eco-conscious buyers but also reduce utility costs.
ROI Expectation: Mid-range kitchen remodels typically see an ROI of about 60-80%, depending on the quality and style of the materials.
2. Bathroom Upgrades
Bathrooms are small spaces that can make a significant impact on a home’s value. Buyers appreciate modern, clean, and functional bathrooms. Key upgrades include:
- Updated Fixtures: New sinks, toilets, and faucets can give the bathroom a fresh, modern feel.
- Vanities: Adding a stylish vanity with ample storage improves both function and design.
- Walk-in Showers: Replacing a tub with a walk-in shower, especially in the primary bathroom, is a popular choice for added accessibility and style.
ROI Expectation: Bathroom remodels often yield around 70% ROI, and even minor upgrades like re-grouting tile and updating lighting can add value.
3. Exterior Enhancements
Curb appeal matters; first impressions can significantly influence a home’s market value. Exterior improvements like landscaping, fresh paint, and upgraded entryways can make a big difference. High-ROI exterior renovations include:
- Siding Replacement: New siding can transform the look of your home and offer durability. Vinyl and fiber-cement siding are popular choices.
- New Garage Door: An updated garage door improves curb appeal and is one of the highest ROI projects, often recouping nearly 90-95% of the investment.
- Landscaping: Simple enhancements like fresh mulch, trimmed hedges, and new plants increase visual appeal without requiring a big budget.
ROI Expectation: Exterior upgrades vary but can often yield between 70-90% ROI, depending on the local climate and neighborhood.
4. Energy-Efficient Improvements
Energy-efficient homes are increasingly attractive to buyers, as they reduce utility costs and benefit the environment. Consider these upgrades for energy efficiency:
- Insulation: Improving attic or wall insulation is a hidden improvement that pays off in lower energy costs and better comfort.
- Windows: Replacing single-pane windows with energy-efficient ones improves comfort and reduces heating and cooling costs.
- Smart Thermostats: Installing smart thermostats gives homeowners greater control over their energy use, which is both practical and cost-effective.
ROI Expectation: Energy-efficient renovations can yield 70-80% ROI and may also qualify for government rebates.
5. Open Floor Plan Modifications
Open floor plans continue to be popular, particularly in main living areas. Removing a non-structural wall between the kitchen and living room can create a spacious, modern feel that appeals to many buyers. However, this type of renovation should be approached with care:
- Consult with a contractor or structural engineer before removing any walls to ensure structural integrity.
- Consider the flow and purpose of each area to create a seamless transition between spaces.
ROI Expectation: Creating an open floor plan can result in a high return, especially in smaller homes, with an estimated ROI of around 50-60%.
6. Deck or Patio Addition
Outdoor living space is a sought-after feature, particularly in areas with good weather. Adding a deck or patio provides additional space for entertaining and relaxing, making it a valuable asset for prospective buyers. Consider:
- Material Choices: Composite decking is more durable than wood and requires less maintenance.
- Size and Style: Make sure the deck or patio complements the size of the yard and style of the home.
ROI Expectation: Adding a deck or patio typically has an ROI of about 65-75%.
7. Finished Basement or Attic Space
Additional living space is always appealing, particularly if it serves a purpose like an extra bedroom, office, or entertainment area. Finishing a basement or attic adds square footage, which can translate to higher market value. Key considerations include:
- Permits and Codes: Ensure the renovation meets local building codes and obtain necessary permits.
- Purpose: Define the space for an office, gym, or guest suite to attract a broader range of buyers.
ROI Expectation: Finished basements and attics usually yield 60-75% ROI.
Making Smart Choices
Not every renovation will guarantee a high ROI, so it’s essential to make choices that align with your neighborhood standards and potential buyers’ expectations. Minor, cost-effective upgrades often bring in higher returns compared to extensive luxury remodels. Always consider your timeline as well—if you plan to stay in the home for a while, prioritize renovations that enhance your comfort and lifestyle while adding value over time.
Renovations can significantly increase your home’s market value and attractiveness to buyers, so whether you’re looking to sell soon or just want to enjoy your space more, these upgrades will bring lasting benefits.
