If you’re planning to sell your home in Canada in 2023, it’s essential to make the right home improvements for the right home in order to increase the value of your property and attract potential buyers. However, not all home improvements offer the same return on investment (ROI) and the outcome will depend on a number of factors, so always speak to a Realtor® before you take the plunge. Here are some of the home improvements with the best ROI for homeowners to consider.
- Kitchen Remodeling
The kitchen is one of the most important rooms in your home and the way it looks can significantly impact its value. Canadian homeowners can opt for a minor kitchen remodel that includes updating appliances, countertops, and cabinet fronts or a major remodel that involves a complete overhaul of the space. According to a report by the Appraisal Institute of Canada, a minor kitchen remodel can recoup up to 80% of its cost at resale, while a major kitchen remodel can recoup up to 60% of its cost. However, according to Scott McGillivray, if you know what to do, your ROI can be as high as 200%.
- Bathroom Remodeling
Bathrooms are another crucial area of a home that potential buyers pay close attention to. Canadian homeowners can consider a minor bathroom remodel that includes updating fixtures, flooring, and lighting, or a major remodel that involves expanding the space and adding high-end finishes. According to a report by the Appraisal Institute of Canada, a minor bathroom remodel can recoup up to 102% of its cost at resale. A major bathroom remodel can recoup up to 60% of its cost so speak to someone on our team about how to be strategic in your approach to this renovation.
It’s not as fun, not as sexy, but in our experience the best ROI you’ll get comes in a paint can. Painting your home’s interior in light, bright, neutral tones will open up a space, transforming it in a matter of hours. It can also help to hide imperfections and create a neutral canvas for potential buyers to envision their own style.
If you’re looking for one colour to paint your home in, home decorators are all about the greige right now. Not just grey, a cross between beige and grey. If you really want to get strategic, check out Zillow’s research on what colour to paint each room. For example, home buyers will pay 1.6% more for a bathroom with light blue walls. That’s almost $8,000 more on a $500,000 home. And before you ignore this and slap a coat of bright yellow on those walls…homes with a neutral color palette tend to sell faster than those with bold or bright colors. Remember, if you’re selling, your home is now a product for sale.
- Boost Your Curb Appeal
The inside of your home may not be the only place you need to do some painting. You won’t get a second chance at a first impression, and the one your home makes will only take seconds to lock in. Paint the trim, shutters and siding if necessary. Most importantly, paint your front door. Although the best front door color for a home depends on several factors, such as the style of the home, the color of the exterior, and the neighborhood. However, according to Zillow’s 2018 Paint Color Analysis, homes with black or charcoal gray front doors sold faster than homes with other front door colours and for an average of $6,271 more. (Other popular front door colors that can add value to a home include navy blue, dark green, and red.) Don’t forget to tidy up both your front and backyard – staging is not just an indoor activity. According to a survey by the National Association of Realtors® (NAR), an investment in landscaping can recoup up to 105% of its cost at resale.
- Energy-Efficient Improvements
Energy-efficient upgrades are becoming increasingly popular among Canadian home buyers. Some of the energy-efficient improvements that homeowners can make include installing energy-efficient windows and doors, upgrading insulation, and adding a smart thermostat. According to a report by the Appraisal Institute of Canada, energy-efficient improvements can recoup up to 80% of their cost at resale. You may be eligible for grants through the Canada Greener Homes Initiative, making the return even better.
- Basement Remodeling
This hot topic always comes up when a basement remodel is on the table. Does a finished basement have good ROI when you go to sell the home? A finished basement can add valuable living space to a home and provide a significant ROI. Homeowners should consider a basic basement remodel that includes adding flooring, lighting, and drywall or a more extensive remodel that includes creating a separate living space, adding a bathroom, and installing a home theater system. According to a report by the NAR, a basic basement remodel can recoup up to 86% of its cost at resale.
- Home Office Addition
With remote work becoming increasingly common, a home office is more important than ever. If you’re looking to add value to your home for sale, consider converting a spare bedroom or creating an addition to their home to add a functional and stylish home office. A Zillow study suggests that a home office can add an additional $10,000 in value to your home.
When it comes to selling a home in Canada in 2023, strategic home improvements can make a significant difference in attracting potential buyers and increasing the value of a home. It’s important to consider the current market trends, the needs of potential buyers, and your budget when deciding which home improvements to make on your property so give us a call at 1.705.739.4455, email us at INFO@PEGGYHILL.COM or fill out the form below. Conversations are always free.