Subject: Which renovations will improve your home's value?
Four Rules of Renovating!
1. Don't overbuild for the neighbourhood.
2. Don't spend more than the price range warrants.
3. Older homes return more on renovations than newer ones.
4. Renovate in a hot market.
The areas to focus on;
1. Kitchen - this is the most valuable area. As a general rule, never spend more then 10% of the homes value on a kitchen.
2. Bathrooms - The second most valuable area. As a general rule, never spend more then 5% of the homes value on a bathroom.
When renovating a bathroom;
Expand the size. Put in double sinks. Put the toilet in a seperate enclosed area. Have a seperate tub and shower. Add new lighting. Install new cabinets and tops. Use all new plumbing fixtures.
Which renovations return the greatest yeild?
Renovations are money pits of one sort or another. Very few will return a dollar-for-dollar return.
The biggest exception to this is when the home has a defect like a very dark living room or a single bathroom. Putting in another window or a skylight will add more light to the room thus improving it value. In the case of the single washroom, adding a second will add immediate value to the home.
Project Possible Max Payback
Attic conversion 75% Basement conversion 75% Bathroom Renovation 85% Bedroom Addition 50% Deck addition 35% Den addition 50% Family Room addition 50% Front Door - adding new 110% Home office conversion 75% Interior doors upgrading 50% Kitchen renovation 95% Patio addition 50% Pool - new 45% Spa - new 55%
The actual value added will depend on a number of factors, including the age of the home, its price range, its condition, the market, and what's normally done in the area.
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