As Toronto’s housing market continues to rise, some homeowners are looking to renovate their homes before putting them on the market in order to increase its appeal and value. However, a home renovation can be a big commitment, so you should focus your attention on these areas to increase your resale property value.
Not all renovations provide the same range of return. For example, building an in-ground swimming pool in your backyard seems like a fun way to enjoy your summer. However, it can sometimes restrict your home’s appeal to certain buyers, and subsequent resale value.
The main focuses of any home renovations should be your kitchen, bathrooms, and basement.
Kitchen and Bathroom Renovations
Sure, your kitchen looks pretty with the lights off but in terms of value, there is a lot to consider. You have dozens of areas where you can renovate, from dated kitchen fixtures to appliances, flooring, and countertops. Or you may want to go bigger with a full layout change that includes an island or creating an expansion, kitchen storage and cabinets, and more.
The bathroom is similar in terms of the vast array of opportunities that there are to upgrade, increase value, and craft a more appealing experience for would-be homebuyers. New bathroom fixtures, vanity upgrades, flooring, energy-efficient upgrades, and even a fresh coat of paint are different ways to increase home value from a bathroom renovation.
The fast turnover of homes on the market are usually those that are move-in ready. If a home’s interior reflects the decade it was built in, it’s due for a design refresh. These homes require a renovation in order to draw in a more contemporary buyer.
If your kitchen renovations include upgrades for better energy-efficiency, are eco-friendly and have smart home tech, you’re opening up more opportunities for higher bids and maximum return.
We have all been inside kitchens that don’t really have a flow; clunky layouts, stained cabinets and cheap or worn countertops. Every homeowner wants to get the most for their home when selling and no amount of real estate staging will hide a dated kitchen. A potential buyer will pick up on it immediately.
Trying to sell a house with a kitchen that isn’t renovated devalues your home right from the get-go. It tells the buyer they’ll have a reno project from the moment they move in. It also gives the buyer a reason to submit a lower bid.
Beyond these two areas, there are also some huge advantages to renovating a basement.
Twenty years ago, basements were considered by most homeowners as storage rooms, typically underdeveloped with out-of-date design and often dark with poor lighting.
Then, real estate values started to increase and the cost of living everywhere went up significantly. Consequently, the need to optimize every square foot of your home means your basement offers immense value — with space for guest rooms, man caves, workout rooms, and more.
These days, homeowners have a new approach to basement renovations, turning their basements into full-on apartment suites complete with a kitchen, bathroom, and multi-room layout. This allows a homeowner to rent out a part of their home, providing income to help them pay off their mortgages.
In this regard, basement renovations can add tremendous value if you choose to utilize it as a rental. It’s an instant income. The renovation will pay for itself in the months to follow. Secondly, when you do decide to sell, you are selling a multi-unit house. Especially in a city, this is a major advantage.
There are numerous opportunities for you to renovate your kitchen, bathroom, and basement, all of which will increase property value and prepare you for a quick sell!