Some renovations pay off. Others not so much.
Renovation spending in Canada is $12 billion a month pace and the typical consumer is dropping more than $13,000 into the effort, according to Statistics Canada and TD Bank.
Some of that reno money will boost a home’s resale value, but others are just not worth the effort.
Based on home appraisal studies, these are the five renovations that pay off the most:
Updated kitchen: New cabinet fronts and new hardware to a full-on renovation with new appliances and flooring, the kitchen is often the money-room at resale time.
Updated bathroom: Bathroom renovations are among the most reliable in terms of boosting the overall value of your home. Popular mid-range renovations could include modern showerheads and faucets, and a new sink and counter top.
Fresh painting: A fresh coat of paint can work wonders on the overall impression and resale value. Light and mid-range neutral colours tend to appeal to the widest range of prospective homebuyers.
Finish the basement: Finishing increase the value and square footage of a home can even provide a mortgage-helper rental suite. Add a bathroom and wet bar so it is ready for suite conversion – buyers will appreciate it.
Energy upgrades: Particularly popular in Ontario, energy-saving new windows, doors and insulation can also boost a home’s resale value.