What You Need to Know Before Renovating

     A question that comes up all the time when talking to my clients is “we want to renovate our home but we want to know where our money is best spent to get the highest return”. According to the National Association of the Remodeling Industry, painting brings you the highest return which is also the least costly renovation you can do to your home.

 Renovation                      Average Cost        Resale Recovery

 Paint                                   $700                         200% plus

Add a Bathroom                 $10,000                    96%

Add a Fireplace                   $4,000                      94%

Kitchen (minor)                  $8,500                      79%

Kitchen (major)                  $24,000                    70%

Bathroom                           $7,500                       69%

Add a Skylight                    $4,000                      68%

New Siding                          $7,500                      67%

Add Insulation                    $1,750                      65%

Addition                               $35,000                   62%

New Roof                            $4,600                     61%

Deck                                   $6,000                      60%

Greenhouse                       $17,000                     56%

New Windows /Doors       $12,000                    55%

Add a Swimming Pool       $24,000                   39%

Now you may ask, “Tyler, if your numbers are correct, how is it possible to make any money by doing renovations?” The answer is, by doing it yourself.  If you have the know how to do these renos on your own, you will save considerably on labour costs, and therefore make a profit. It’s important to remember when you are doing renovations, keep it tasteful and neutral to satisfy all tastes.  Also guide your renovations towards the potential target market that will be looking to purchase your home.

One last thing.  If the purpose of your renovation is to increase the value of your home before selling, be aware.  There is such a thing as “over renovating.  Some streets or neighbourhoods will not be able to support a higher selling price, even if the home is out of this world. 

Happy renovations!

Source: National Association of the Remodeling Industry

  

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About tylerlaird
Having been born and raised in Ottawa, this city is more than my home, it is a part of who I am and the basis from which all other cities must be compared. I have watched it grow and progress in its size and over time I found myself naturally drawn to the different neighbourhoods, with their varying characters, layouts and styles. After earning a BA in Law from Carleton University, Tyler discovered a new passion, real estate. In 2010, he began to use his passion for Ottawa’s various housing styles and diverse neighbourhoods, to help many people find that place that they can call home.

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