Renovating your home to prepare it for sale is often a good idea – to a certain extent. When considering what updates to make, you’ll want to know what you might expect in return on your renovation costs. You may not get a dollar-for-dollar return in the selling price of your home. However, when looking to sell your home it is generally agreed that if it’s attractive, clean and in good repair it will sell a lot better than one that is dated and in any state of disrepair.
The Appraisal Institute of Canada has compiled a list of the renovations that yield the greatest return on investment. The following chart outlines several common renovations and the average return on investment in the home’s selling price. Keep in mind that these numbers are an average and will vary based on individual markets and locations.
Average Return on Renovation Costs
| Kitchen Upgrade: | 75% – 100% |
| Bathroom Upgrade: | 75% – 100% |
| Interior Painting: | 50% – 100% |
| Roof Replacement: | 50% – 80% |
| Furnace/Heating System Replacement: | 50% – 80% |
| Expansion (i.e. adding a family room): | 50% – 75% |
| Doors and Windows: | 50% – 75% |
| Deck: | 50% – 75% |
| Installing Hardwood Flooring: | 50% – 75% |
| Adding a Garage: | 50% – 75% |
| Adding a fireplace: | 50% – 75% |
| Central Air Conditioning: | 25% – 50% |
| Finishing the Basement: | 25% – 50% |
| Wood Fence: | 25% – 50% |
| Landscaping: | 25% – 50% |
| Pool: | 10% – 40% |
If you’re looking for advice on what to improve in your home for sale please contact me.