You may be thinking of selling your home, but have some renovations you may want to do before you put it on the market, you should be aware of what your return on your investment would be with the renovations you have in mind.
Although your renovation costs depend on the contractor you will use along with the cost of finishing’s (hi –end, mid-range or low-end) you should make sure that the renovation that you do will give you a good return when you sell your home.
According to The Appraisal Institute of Canada, green renovations are leading the way in home renovations. Members of the institute were asked which improvements added value to the sale price of a home. They were asked what three renovations in their minds gave the best recovery rate. The recovery rate is the likely increase in a home resale value which could be attributed to a renovation as a proportion of the cost of the renovation. For example, if a $10,000 renovation increases the home value by $6,000, over the home’s previous value, then the ‘recovery rate’ is 60%.
This year, energy efficient upgrades were cited most frequently by respondents as having an average recovery rate of 61%. Other renovations with a high recovery rate were neutral paint colour with a rate of 67%, cooking island in kitchen 65%. You need to be informed as to what will give you the best return the popular spa showers have a relatively low return rate at only 36%.
Whatever your renovations are just remember to plan and do your research.
For more information on your renovations and the best return for your dollar, call or visit us at:
(204) 987-2100 or 1 888-880-2121