Which Renovations Give You the Best Return When Selling Your Home?
The majority of us tend to make major buying decisions, such as a home, based on impulse and very little logic. Most home buyers will buy after “falling in love” with your house. Hardly a calculated, well thought out decision! As a seller, you want to capitalize on these buyer emotions.
Here is a rundown of the return you might expect to get for some of those renovations you have made.
The return you get will vary depending on whether you are selling during a sellers or a buyers market. Clearly you will get the highest returns when you sell at the height of a sellers market, such as the one we have had for several years.
What renovations should you do first?
A good question to ask yourself is… “What is the first renovation the buyer would like to do in this house as soon as she buys it?” If most buyers wouldn’t install a gym, do not install one. You are unlikely to see great return on such an investment when you go to sell.
Return on Home Improvement Investments
|
Type of Renovation |
Buyer’s Market (As low as…) |
Seller’s Market (As high as…) |
|
Interior paint |
70% |
300% |
|
New flooring |
50% |
300% |
|
Kitchen remodel |
68% |
97% (mid-range) 120% (upscale) |
|
Bathroom addition |
75% |
130% |
|
Family room addition |
75% |
140% |
|
Home office |
40% |
60% |
|
Basement remodel |
50% |
130% |
A word of caution!
A poorly done renovation will bring down the price of your home. The buyers are now facing the cost of ripping out that small bathroom and replacing it with a larger modern bathroom with all the bells and whistles.
What is a sure-fire test to find out what renovations will bring you the highest sale price when you are ready to sell?
The answer varies from neighbourhood to neighbourhood. If you are not sure what the typical buyer in your area wants, call a local real estate agent and ask what features are most important to buyers in your particular area. They are the experts since they talk with buyers daily.
Not comfortable talking with the local agent? Send me an email and I will be happy to answer your questions.
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Time July 28, 2008 at 4:44 pm
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