Adding Value

Adding value through renovation projects
Sitting quietly, coffee cup in hand, you smile as you imagine your kitchen equipped with new cupboards or your basement finished – at last! – or your bathroom completely remodelled. Then you start to think about the cost… and you keep right on smiling, because you realize that, in addition to the lifestyle improvements provided by your new environment, the investments you make will help increase the resale value of your home.

Renovations that pay
In terms of profitability, the top 3 renovation projects are: the installation of hardwood flooring, followed by the installation of kitchen cupboards and the remodelling of the bathroom. Real estate agents always place a premium on these types of renovations and the fact is, they help generate faster sales and higher prices. In a recent American study it was determined that, in a seller’s market, renovation investments are even more profitable because they can increase the value of the home by the same, if not an even greater amount. In this way, homes located in certain cities and selling under favourable conditions, can expect a $16,000 investment to generate an increase of as much as $18,500 on the selling price. Of course, this all depends on the general condition of the house, the type of work and materials applied, the area and the type of construction, which all play a defining role in the resale value, and must be taken into account as well as the period of time over which you will benefit from your new surroundings.

If you are looking to sell your property in the short term, the renovation projects you undertake may take on a completely different meaning. For the most part, choosing a home is a heartfelt decision and you can maximize your chances of selling your property by providing it with an eye-catching new look. Installing new melamine cupboard doors with a wood-grain finish, new handles and a designer faucet yourself would cost you less than $700 and would go a long way towards making even a 30-year old house all the more attractive while enabling you to garner as much as an additional $1,500 on the selling price.

In addition to the financial benefits delivered by these renovations, one must consider their intrinsic benefits as well; the view, the increased sunlight and the savings on heating provided by the proper installation of large windows can be worth more than the purchase cost. Well-conceived shelving units are inexpensive to build but can be worth their weight in gold for large families while a finished basement will help prospective buyers visualize their future home-theatre or home-office area. We often judge restaurants by their washroom facilities; the same might be said for our own bathrooms, which will have an effect on the buyer’s perception of the entire house.

Renovations: think of yourself first
Keep in mind that the same renovations applied in identical homes located in different areas will not generate the same return on investment. Accordingly, melamine cupboards, laminated countertops and ceramic tiles may be more appropriate than oak, granite and exotic wood, depending on how important profitability is to you. In the end, one must understand that renovations are carried out with the homeowner in mind, and usually, from a long term perspective. The added value is, in many ways, a bonus that will ultimately be paid when the house is sold, if that is your intention.

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