We Canadians spend upwards of $71 billion improving our homes. That’s more than $5,000 per household. And there’s no sign this is going to change anytime soon.
This year, if you’re looking to increase the value of your home but are unsure what home improvements to make, think curb appeal. According to a recent report from Remodeling magazine, curb appeal projects, such as changes to windows, siding and doors, lead to a higher return on investment (ROI) than interior improvements. It supports the generally held opinion that today’s home buyers, while still enthusiastic about the bells and whistles, want to ensure their home is structurally sound with all systems functioning efficiently.
The Appraisal Institute of Canada agrees: The top five renovations associated with maintaining the value of your home are replacing roofing; updating the HVAC system; replacing windows and doors; updating electrical panels, wiring, sockets and fixtures; and making structural repairs.
In its 2017 Cost vs. Value Report, Remodeling compares the average cost of current improvement projects with their value at resale, based on the experience of real estate professionals.
The projects chosen include a basement remodel, an entry door that was replaced with 20 gauge steel and the addition of stone veneer. All of the 29 projects tracked returned on average 64.3 cents per dollar spent.
Among the trends, the higher return of curb appeal projects and of projects that required the replacing of windows, doors, etc. Replacement projects generally scored higher than renovation projects; the ROI of replacement totalled 74% and of renos was 63.7%.
Those who want to tackle an interior project might do well to consider a basement renovation, providing it’s done well; a high-end basement reno was perceived as high value, returning 7.4% more than the same project last year, while a mid-range basement improvement project only increased in value by 3.3% over the previous year.