Home Improvements: Increase ROI, Enjoyment, & Long-Term Value With These Top Ideas

When selling, every homeowner needs to know the current value of their home in the market if they intend to get top dollar. This can be achieved through extensive personal research or hiring a professional real estate appraiser or knowledgeable real estate agent. Investing money into a home can increase the value, but knowing which areas of the house to invest in for the biggest impact will help ensure that the money finds its way back into the seller's wallet.

Determining which improvements are the best to invest in depends on how long the seller plans to spend on the home before selling. Does it need to look good for current buyers? Will efficiency upgrades have long enough to benefit the current owner's bills? Or perhaps the improvements are being made with an eye to an eventual sale, not an imminent one. Whatever the timeline, here are some things to consider about home improvements with a high return on investment.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

What's the True Value of the Home?

A qualified real estate appraiser will give homeowners a fair and unbiased value of their home and guide them in making the most valuable improvements—but they may not account for aesthetic upgrades. To determine the home's market value, an appraiser will consider the neighbourhood, market conditions, and the structure of the home.

According to the Appraisal Institute of Canada, return on investment is determined by three values: the homeʼs selling price, enjoyment of the new space, and the homeʼs maintenance. Consider these to determine if investment gains will outweigh the cost of upgrading.

The Top 5 Improvements to Increase ROI:

• Update the kitchen.
• Update the bathroom.
• Repaint the interior and/or exterior of the home.
• Update decor, fixtures, lighting, and flooring throughout the home.
• Declutter and organize storage space to showcase the best features of the home.

The Top 5 Improvements to Increase Enjoyment in the Home:

• Update or finish the basement.
• Update or finish the garage.
• Update exterior space, such as decks and fences.
• Landscape the yard.
• Add a sunroom or new addition.

The Top 5 Improvements That Add Long-Term Value to a Home:

• Update the roofing.
• Update to energy-efficient heating and cooling systems.
• Update the doors and windows.
• Update the electrical.
• Enhance or strengthen the overall structure of the home.

It is important to note that any improvements made to the home should match other homes in the neighbourhood to align with a buyerʼs expectations of a home in the area.

Renovation & Staging Improvements for Smaller Budgets

Donʼt have a huge budget for a kitchen remodel? Sometimes small details can outweigh major renovations and modernize a space enough to increase the home's value. Simply repainting walls and baseboards/trim, updating door/cabinet handles, and changing out plumbing and lighting fixtures can freshen up a space and give it a completely modern look and feel. Repainting the exterior can enhance curb appeal, and the right colour can even make a house look larger. Keep in mind that any new paint colours should be neutral and appeal to the broader market.

Behind-the-Scenes Value

While home maintenance improvements are not as exciting, they can pay off when it comes to the home inspection. Staying on top of maintenance is a long-term strategy to maintain the value of a home and appliances, making them a valuable investment with a high return. These features should be updated at the end of their life expectancy, or homeowners can expect buyers to take money off during inspection to account for replacement costs.

When a homeowner is looking to increase the value of their home for resale, they should keep the ROI in mind. If they can't confidently get out of it more than they put in, they should scale back. They may benefit from asking their real estate agent or real estate appraiser how each improvement might impact the overall value of their home.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.