Dollar-for-Dollar ROI on Renovations!

Real estate is often more about “curb appeal” and “functional maintenance” than it is about luxury upgrades. If you’re looking to get a 1:1 return on your investment (ROI), the rule of thumb is that invisible maintenance and first impressions win every time.

Here is the breakdown of where to put your money—and where to keep it in your pocket so that you are not “over-renovating” your home (making your house a swan) compared to what you can reasonably expect the market to yield for your type of house.

So what are the “dollar-for-dollar” contenders that make good sense when you’re looking to renovate-to-sell?

The following types of projects typically recoup 80% to 100%+ of their cost because they address the primary concerns of a buyer: “Is this house safe?”, “Is it functionally liveable?”, and “Does it look nice?”.

• Minor Kitchen Refresh: Don’t gut the whole room. Replacing cabinet fronts, modernizing light fixtures, updating hardware, and installing new (stone) countertops can net a massive return.

• Manufactured Stone Veneer: Replacing vinyl siding on a portion of the home’s exterior (like the entryway) consistently ranks as one of the highest ROI projects due to it’s curb appeal.

• Garage Door/Motor Replacement: It sounds boring, but a modern, high-functioning garage door, whether that means just improving the motor for quietness or actually replacing the whole door and system, drastically improves curb appeal for a relatively low cost.

• Hardwood Refinishing: If you have original hardwoods under carpet, pulling up and getting rid of old carpet combined with refinishing the wood almost always pays for itself.

• Grand Entrance: A new, modern front door or simply painting the existing one a bold, high-end color adds a fresh pop and refreshing the trim presents this home as “crisp and clean”.

Now, what if you don’t have the extra jingle in your pocket to be paying to renovate your home? No worries, there are plenty of “labour of love” projects (clean up the landscaping, deep clean the house, declutter etc) or simple “staging” actions that you can do to add value to your home. You can check out some “Staging on a Budget Tips” in one of my other blog posts by CLICKING HERE!

So far we’ve been talking about the highly visible renovations that a potential buyer is going to be able to see with their naked eye when they check out your listing online or walk through the home in person, but there are some renovations that aren’t visible and don’t necessarily add value, but their absence deducts value. You won’t get a “bonus” for having a roof that doesn’t leak, but you’ll lose about 10% of your asking price if it does leak. Check out this summary table of “invisible” items that SHOULD be up to snuff and in good working order prior to listing your home for sale in order to prevent the low-ball offers/negotiations and make it easy for a buyer to pay you what the market value for your home:

• Pro Tip: Before you swing a hammer, look at the “comps” (comparable sales) in your neighborhood. If every house nearby has laminate counters and you install Italian marble, you are “over-improving” for the area and will likely lose money since you are positioning yourself as the “swan” on a “duck” street.

With all that said, if you are thinking about making a move this year and would like to chat about what renovations or changes would be beneficial or necessary for you to get top dollar in our market, I am always happy to do a walk-through of your home and offer suggestions.