Did you know that 1 out of 2 Canadian home owners are planning on renovating their current home? This is great news for our economy, but the problem is that most people don't properly consider all of the important details when undergoing a renovation. They simply look to do the most affordable option without considering the money they are just throwing away on a space that may not actually suit their needs long term.
Renovate with purpose! All renovations should blend aesthetics, function and should increase property value.
Not surprisingly, home renovations are becoming extremely popular right now in the Saskatoon market. There are so many great homes that are in established neighbourhoods that offer beautiful trees, grown in landscaping, great proximity to schools and amenities, but they just need a little ‘TLC’. Renovations offer a homeowner or a family a new way to experience their home as they can make changes that suit their needs without having to relocate and uproot their lifestyle with a move. Renovations allow you to focus on what makes a home or a space truly speak to you by making changes that are comfortable, functional and inspiring. People's homes are becoming a place of sanctuary, honouring the precious downtime that we get to experience.
On the real estate side of things, renovations are giving homes the opportunity to redeem their value in the competitive marketplace, and will add sales value to your home for when you decide to move. If you are thinking of renovating and looking to increase your homes property value, here are five of the best renovations you can do to your home to increase property value. These five renovations can sometimes have a return on investment 5-6x what they cost.
1. Kitchen - cost regained is typically between 100%-125%
2. Bathroom - cost regained is typically 125% and adding a bathroom can increase the home sale price by at least 8%
"Kitchens and baths are the areas in a home where you can tell if money has been well spent or not. They're the most expensive areas of the home in terms of construction and they're where people spend the majority of time in their homes. If you plan on making your renovation an investment do not consider cheaping out on these two areas.”
3. Addition - Adding more space can increase your sale price by more than 25%.
"Adding on to your home is probably one of the biggest undertakings a homeowner can do, but definitely well worth it. Additional bedrooms or income suites add tremendous value and pay themselves off right away.”
4. Fixtures - cost regained is typically 150%
"An easy upgrade that makes a dramatic upswing in valuations and sale-ability is replacing your dated fixtures such as hardware, lighting, counter-tops and appliances. These items can really date a property and modernizing is a great way to bring your home a new style.”
5. Flooring- cost regained is typically 100%-125%
"Flooring is one of the most important aspects of your house both practically and aesthetically. Choosing the right finishing's such as hardwood, ceramic tile, leather or cork will see an immediate rise in property valuation.”
Again, renovate with purpose! Most kitchen renovations happen 30 years down the road from when they were initially completed, so make the investment and the pain incurred from the renovation count.
Ultimately when considering any renovation, you should consider the longevity of your needs with the space. If you are renovating for long term use, you should select long wearing materials that are both durable and provide more of a timeless look. This way you can splurge a bit and confidently know that you will not be renovating again 5 or 10 years down the road. In this scenario you can afford to spend a little more than you normally might (5%- 10%) in an immediate resale situation, as your home will generally appreciate up to the value that you have spent. Also if you have invested in quality products and a well designed space, the investment should carry you through a very long time.
On the other hand if the space is temporary or you are fixing up for resale, the investment of high quality products would not necessarily be a wise one as others may enjoy the benefits but would not fully appreciate paying extra for your investment.
My suggestion would be to talk to the experts to help to advise you on property value (realtor), the “bones” of the home (contractor), and the space’s design possibilities (designer). But most importantly don’t wit to renovate for someone else to enjoy if you can help it. Start today and create an ultimate space for you to begin enjoying now.
Photos are Metric Design projects shot by Skipstone Films. All flooring photos from Porcelanosa.