When deciding on what type of renovation to undertake and how much to spend, consider how your future “resale” value will be impacted. Not all renovations are a smart idea and actually can reflect negatively on your eventual selling price.
Most people think that renovating will automatically guarantee an increase in property value. Not so. You obviously want to appeal to the greatest number of buyers when deciding on what should be renovated.
If you are looking to sell your home quickly, the cheapest and best return for your dollar is to spend a little on interior paint.
The below information is just an estimate on return.
Percentage recovered upon resale:
- Kitchen upgrade: 75% to 100%
- Bathroom upgrade: 75% to 100%
- Interior painting: 50% to 100%
- Roof replacement: 50% to 80%
- Replacement of furnace or heating system: 50% to 80%
- Expansion (addition of family room): 50% to 75%
- Doors and windows: 50% to 75%
- Deck: 50% to 75%
- Installation of hardwood floor: 50% to 75%
- Construction of a garage: 50% to 75%
- Fireplace (wood or gas) 50% to 75%
- Central air conditioning: 50% to 75%
- Finished basement: 50% to 75%
- Wood fence: 25% to 50%
- Interlocking paving stones on driveway: 25% to 50%
- Landscaping: 25% to 50%
- Asphalt driveway: 20% to 50%
- Pool: 10% to 40%
- Skylights: 0% to 25%
As a General rule, forget about the luxuries and keep the renovations general and suitable to the neighbourhood and surrounding homes.