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What Are The Best Home Improvements For Return on Investment?

First impressions are crucial when it comes to selling your home. Studies show that potential buyers form an opinion of a house or condo within eight to ten seconds of entering it. This means that the initial impression they get must be welcoming and inviting.

As a homeowner, increasing the value of your property is likely a top priority. While renovations and improvements can be a great way to achieve this goal, not all upgrades offer the same return on investment (ROI). To help you make informed decisions, we’ve compiled a list of home improvements that typically provide the best ROI.

1. Painting:

A fresh coat of paint can do wonders for your home’s appearance, making it look clean, updated, and well-maintained. Choose neutral colours that appeal to a wide range of buyers to maximize the impact. Costing between $2-3 CAD per square foot, painting is one of the most cost-effective ways to improve your home’s appearance, helping to freshen up a space and make it more appealing to potential buyers.

2. Curb Appeal Enhancements:

Enhancing your home’s curb appeal is not only about creating a good first impression but also about increasing its overall attractiveness and value. By investing in landscaping, exterior painting, and updating your front door and garage door, you can transform the look of your home and make it more appealing to potential buyers. Simple upgrades, such as a fresh coat of paint on the front door and modernizing the mailbox and street numbers, can significantly improve the overall aesthetics of your home and enhance its curb appeal.

3. Minor Kitchen Remodel:

The kitchen is often considered the heart of the home, and a minor remodel can go a long way. Focus on updating cabinets, countertops, and appliances. If there was ever water damage under the sink from a leaking pipe, take care of it. Something as simple as a paint job (yes, there it is again, paint) if not the room, consider the cabinets, and an upgrade in hardware can make a huge difference. A modern, functional kitchen can significantly increase your home’s value.

4. Bathroom Updates:

Bathrooms are one of the key selling points for homes, often considered a sanctuary within the house. A mid-range bathroom remodel that includes updating fixtures, tiles, and finishes can provide a high ROI by enhancing both functionality and aesthetics. Ensuring clean grout and a well-maintained appearance is essential to making a positive impression on potential buyers, as it reflects the overall care and upkeep of the home.

What Are The Best Home Improvements For Return on Investment?

5. Attic Insulation:

Proper attic insulation is crucial for maintaining a comfortable home environment and reducing energy costs. One popular method, blowing insulation, costs approximately $1-2.50 CAD per square foot and offers a significant return on investment. It helps regulate indoor temperatures, leading to lower heating and cooling costs, and can prolong the life of your HVAC system. Moreover, insulation enhances indoor air quality by sealing out pollutants and allergens, creating a healthier and quieter home environment. Additionally, you might be eligible for the Home Winterproofing Program, in which case the insulation installation could be free.

6. Smart Home Features:

Incorporating smart home technology, like thermostats, security systems, and lighting, can enhance your home’s appeal to modern buyers. Smart thermostats enable remote heating and cooling control for comfort and energy efficiency. Smart security systems offer monitoring and alerts for added safety, while smart lighting allows remote control and scheduling for convenience and energy savings.

7. Energy-Efficient Upgrades:

Energy-efficient improvements not only reduce utility bills but also appeal to eco-conscious buyers. Consider upgrading to energy-efficient windows, appliances, and HVAC systems. There are typically municipal, provincial, and federal incentives and rebates are available for these types of upgrades, making them even more cost-effective in the long run.

What Are The Best Home Improvements For Return on Investment? Energy-Efficient Upgrades

8. Flooring Upgrades:

New flooring can transform the look of a room. Consider upgrading to hardwood, laminate, or tile flooring for a high-impact change. Costs for flooring can vary widely, ranging from $3 to $15 CAD per square foot depending on the material you choose. Installation costs may vary as well, typically ranging from $2 to $4 CAD per square foot.  Since costs and rates can vary for flooring, it’s wise to get several quotes before proceeding. If a flooring upgrade isn’t feasible, consider having your carpeting and hardwoods professionally cleaned. For worn or discoloured areas on hardwood floors, touch them up with water-based stain to make them less noticeable. Adding a nice throw rug can also enhance the room’s appeal.

9. Deck Addition:

Outdoor living spaces are highly desirable and can significantly increase the appeal of your home. Adding a deck can expand your living space and provide a great return on investment. If you already have a deck, ensuring it is well-maintained and clean is crucial. Regularly power washing the deck can help maintain its appearance and longevity. Additionally, adding some patio or deck furniture can help potential buyers envision the space as a functional and inviting outdoor living area. By enhancing the deck with comfortable seating, dining furniture, and perhaps some decorative elements like potted plants or outdoor lighting, you can showcase the potential of the outdoor space and create a welcoming atmosphere for entertaining or relaxation.

What Are The Best Home Improvements For Return on Investment? Basement Remodel

10. Basement Remodel:

Finishing an unfinished basement can add valuable living space and increase your home’s value, providing a good return on investment. However, this can be costly, with a full renovation ranging from $55,000 to $99,000 for a 1000 sq ft basement. The expense is mainly due to installing electrical and plumbing systems, along with materials like drywall, flooring, and insulation. Despite the cost, a finished basement can significantly enhance your home’s appeal, offering additional living areas, entertainment spaces or home offices that may attract potential buyers.

Don’t Lose Sight Of The Bigger Picture

Before diving into smaller cosmetic adjustments, ensure your home’s basic needs are met. Are all major components in working order? Buyers expect a well-maintained, safe, and functional home. For example, if you’re considering a bathroom upgrade but your heating system is unreliable, prioritize fixing the heating system first. Also, avoid expensive projects with purely personal appeal, such as adding a luxury home theatre. While these additions may enhance your lifestyle, they often don’t provide a good return on investment and may not align with potential buyers’ priorities.

Always take care of easy low hanging fruit items, like squeaky doors and dripping faucets.

Before embarking on any home improvement project, it’s essential to research local market trends and consult with real estate professionals to determine which upgrades will provide the best ROI for your specific area and property. With the right approach, strategic home improvements can enhance your home’s value and appeal to potential buyers.

Remember, the goal of these improvements is not just to increase the value of your home for potential resale but also to enhance your enjoyment of your living space while you’re still there. By investing wisely in your home, you can create a more comfortable and valuable living environment for yourself and your family.

What Are The Best Home Improvements For Return on Investment? Home Interior

What Are The Best Home Improvements For Return on Investment?

Are you considering home improvements but unsure which ones will yield the best return on investment? Let our expert team guide you! We’re here to help you make informed decisions and maximize the value of your home.

Get in touch with us today and take the first step towards a more valuable home!

Have any questions or just wanna chat?  Give me a call or send me an email.

416-274-3710 | info@laragroup.ca

Andres

Thinking of selling? Check out our 8 Steps To Selling Your Home.

* Prices mentioned in this article are approximate and may vary based on factors such as the cost of materials, labor charges, and location. It’s advisable to obtain quotes from local contractors and suppliers to get a more accurate estimate for your specific project.

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