Renovation Cost vs Value

When planning a renovation you must understand that the cost of the renovation is not proportional to the value it adds to your home.  Each renovation adds value to your home differently. 

If your renovating for the purpose of selling, then keep the renovation in perspective.  Do not over personalize the updates you are making as everyone has different decorating preferences. Kitchen and bathroom renovations get the most cost to value return.  Although investing $50,000 in a kitchen reno in a $125,000 home is not going to get the yield you may be seeking.

Also there is sometimes a thin line between maintenance and improvements to your home.  Replacing a roof on a 30 year old home may not be seen as an improvement, but simply as maintenance.   

The Appraisal Institute of Canada has a worksheet on their website that will help you estimate the investment return on your renovation.  You simply enter the estimated dollar amount of your renovation and it returns an expected return of value.

Check out the online worksheet and see how your renovation adds up:

Online Worksheet

 

 

Robin Gyimesi

Robin Gyimesi

Sales Representative
CENTURY 21 John DeVries Ltd., Brokerage*
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