Whether you’re prepping your house for sale, or upgrading items and areas to improve your living quality, it’s important to always consider the capital return on the investment you’re making in the property. Regardless of project size or complexity, every property enhancement will work to increase the value of your home. This article is going to explore the various home improvement projects available and the best roi renovations associated, ensuring that you’re able to focus your efforts and dollars on the right area.
Paint
Painting your home will be one of the quickest, easiest, and most affordable ways to increase appeal and property value. The often under-appreciated renovation project can breathe new life into your living space, and with the help of a professional painter experienced in palette selection and damage repair, a refreshing aesthetic is only a few brushes away.
Although painting won’t be a renovation as extravagant as others on this list, it’s a reliable way to improve the feel of your home and create an inviting space that resonates with buyers.
ROI Insight: Expect a house repainting to generate a 60% return on investment. For a home sized 2,000 square feet, expect the complete project cost to range between $10,000-15,000.
Doors & Hardware
There is plenty of value to be found in the finer details. When considering potential home renovation opportunities, you shouldn’t overlook simple door and hardware replacements. In addition to those two, you can also consider baseboards, door trim, crown moulding, and all other relatively minor, non-invasive improvements that will modernize the appearance of your home. Since these upgrades are relatively inexpensive, you should focus on high quality materials and professional installation.
ROI Insight: Projects this small in scale won’t have an incredibly important impact when it comes time to sell your home. With that said, you should expect a return of 50% of your initial investment. For reference, a new front door and lock system will cost approximately $2,500, with new interior doors and hardware running approximately $250 per door.
Countertops
As a more efficient, affordable solution to an entire kitchen renovation project, changing your countertops can be an incredibly accessible way of improving the aesthetic of your home and increasing resale value. Changing out old counters for newer, high-quality stones – such as granite or quartz – can do an incredible job of making the entire kitchen feel new for only a few thousand dollars. In addition to the counters, you should consider swapping out the old appliances for new stainless steel alternatives, which can have an incredible impact for only $5,000-$10,000 additional.
ROI Insight: Amongst the renovations available, kitchens will traditionally yield one of the highest returns on investment. Expect anywhere from a 75-100% return on the money you put into the project.
Bathroom
Establishing one luxury bathroom in the home will help plenty when it comes time to sell. For this renovation project, focus on large items such as frameless glass showers, marble counters, and the like. Utilizing the space will be incredibly important to creating a welcoming environment that potential buyers love, and if done right, you can generate a more than modest return on the $5,000-15,000 you’ll need to invest in the project.
ROI Insight: When completed with care and detail, the best ROI you can expect from a bathroom renovation will average 62%.
Flooring
Your home’s flooring will be one of the most worn-out, yet most visible elements to a potential buyer, and it’s incredibly important to replace aging flooring if your hope is to maximize the value at sale. Selecting the right kind of flooring for your home can be very difficult, with hardwood flooring looking very poor if gapped and raised due to improper installation, laminate flooring looking cheap and ill-constructed if improperly installed, and carpet looking often outdated and dirty. It’s advised that you go the route of hardwood or laminate with the support of a professional flooring specialist, avoiding carpet at all costs.
ROI Insight: When completed well, flooring will prove to be one of the best return on investment home improvements, averaging between 100-150% return on investment. You can expect a new hardwood floor installation to cost $4-6 per sq.ft. for material with an additional $2 per sq.ft. for installation. Laminate will cost you closer to $1-3 per sq.ft. for material, with labour running in the range of $1.50 per sq.ft.
Kitchen
As an extension of the countertop remodelling discussed above, a complete kitchen renovation will see a change to the entire space – including counters, flooring, cabinetry, paint, appliances, and more. As the focal point of many homes, a kitchen renovation will be an integral part of the atmosphere, and it’s an incredibly important element of the selling price of your home. Although the most expensive of any renovation projects available – ranging anywhere from $25,000-50,000 for completion – kitchen renovation projects are known for providing quality returns on investment. One item to consider is that kitchen renovations are no small feat, and most projects take weeks, if not months to complete. It’s important to consider the implications of this on your lifestyle and home usage prior to jumping into the project purely for the investment return opportunity.
ROI Insight: If you’re working with an expert contractor on your kitchen renovations, expect the investment to yield a 75-100% return on the money you put into the project.
Landscaping
The outside of the house is one of the best places to see a return on investment because increasing the curb appeal of your property will better your chances of selling your home. If your home’s exterior is unappealing, then people will be less inclined to see the inside of your home. Adding new landscaping features such as a fence, a fire pit, a flower bed, a water fountain, or simply improving the condition of your lawn by trimming or cleaning up grass lines could be just what your home needs to appear more inviting and look fresh. The backyard may be the first design element buyers see and certainly the front yard, so making a good impression on first arrival is so pivotal. At its most effective, curb appeal captures the attention of buyers viewing the outside of your home and in turn, drives interest if they want see more inside.
ROI Insight: Landscaping is ranked as one of the highest documented home improvement return on investment projects. The average cost is $4,900 and with an average return of $4,900, you can’t get much better value than a 100% ROI.
Garage Door Replacement
In addition to the functional and aesthetic reasons of why replacing your garage door is beneficial, more protection and security, superior insulation, reduced maintenance, and more visually appealing, garage door replacement delivers an exceptional ROI. This is because of the curb appeal a properly installed and well-maintained garage door brings to the home’s market value. Garage doors take up a large portion of a residential property’s visual real estate, so a well-conditioned door that complements your home adds to the overall appearance of your property and increases its value on the open market.
ROI Insight: Remodeling Magazine’s annual Cost vs. Value report has answered the question, “What adds the most value to your home?”. They have reported replacing your garage door is one of the best ROI renovations homeowners can make. A garage door replacement can cost under $4,000 and the overall average recouped cost in 2020 was 94.5%, with some homeowners seeing a ROI exceeding 150% and even 200%!
Entry Door Replacement
This may seem like one of the more simple home improvement projects however, replacing your entry doors can have a big impact. Similar to landscaping, the entry door is one of the first features of the house a buyer will see and interact with, therefore, making a memorable first impression while trying to sell your home is worthwhile. Most people only need a few minutes to look at the outside to decide whether or not they want to proceed with viewing the inside before making an offer on the house. To capitalize on the potential intrigue of buyers, increasing curb appeal through entry door replacement is in homeowners’ best interest.
ROI Insight: The average cost of entry door replacement is $1,410 and with an average return on $1,280, homeowners can expect to see a resounding 90.7% return on investment.
Deck/Patio/Porch
If your backyard has the space for a deck or a patio, or your front yard space permits building a porch, homeowners should consider investing in these exterior structures. Decks, patios, and porches are home improvements that add value to any home. It increases usable living space outside onto the front or backyard and is a compelling selling point to draw buyers in when differentiating your home from others on the market.
ROI Insight: A deck, patio, or porch addition can vary in cost greatly based on the materials used, location, and the size of the structure. With that in mind, you’re looking at the average cost to be around $11,000 and the average return to be $10,000, making the ROI totalling about 90.3%.
Window Replacement
A brand-new set of windows is beneficial to the inside and outside of your home. Replacing existing windows with energy-efficient options can save homeowners money on their energy bills by cutting down on heating and cooling costs, not to mention drafty windows can be a major turnoff for potential buyers. New windows also freshen up the interior appearance of your home, and this visual pleasantry extends outside as well. The clean lines of new windows can attract buyers when looking at the outside of your home, adding to the curb appeal.
ROI Insight: Window replacement costs vary depending on the number of windows involved, the location of the windows, and what type of window you want. Nevertheless, the investment can earn you your money back. The average cost is around $10,000 and the average return is reported to be around $9,000, making the ROI a respectable 90%.
Attic Insulation
Insulating your attic will cut your monthly energy bills saving you significant money in the short and long-term. This is also an attractive feature to intrigue potential home buyers. When it comes to insulating material, there are a few options to choose from including foam board, batt, spray foam, and blown-in insulation. In any case of attic insulation, you must provide enough insulating value (R-Value) to keep cool air from entering.
ROI Insight: Considered by Remodeling Magazine as one of the best ROI home improvement projects, attic insulation is atop their annual, Cost vs. Value report, with an impressive average of 117% ROI. Depending on the material you choose, attic insulation will cost you between $1.50 and $5.50 per square foot, but this is a renovation that adds value to your home in addition to saving energy, extensively paying for itself!
Roof Replacement
It’s time to replace your roof if you notice your shingle edges are curling, cracked, buckling, or missing altogether, you’ve spotted moss or dark streaks, or just old age has taken its toll. A metal roof is an attractive option for potential buyers because of its longevity, durability, and resistance to harsh weather conditions. Whether it’s a metal roof, solar panels, or shingles, as long as your material of choice is carefully and properly installed with a long-lasting warranty, your roof is sure to be a safe and protective barrier for many years to come.
ROI Insight: Replacing your roof is a type of renovation that increases home value by potentially 60-110%. The return on investment varies by such a wide range because of the existing condition of your roof and market factors including cost of labour and materials.
Finishing Basement
Finishing a basement can be a time-consuming, costly task to undertake. There are however advantages and significant value to be had from renovating this space. Potential buyers are much more attracted to a home’s interior if the basement is finished because the work has already been done. You’ve saved them the trouble of having to plan, obtain permits, hiring contractors, installing insulation, protecting against moisture, waiting for materials to arrive, in addition to several other hassles you’ve alleviated.
ROI Insight: The average cost to finish a basement is anywhere between $50-$90 per square foot. Depending on the size of your basement, your choice of finishes, and if there is an added kitchen, bathroom, or bedroom, costs will vary accordingly. Remodelling Magazine has reported, expect to see a 75% ROI for homeowners undergoing a renovation project to finish their basement.
Remove Popcorn Ceilings
Not only does removing popcorn ceilings increase the value of your home, but you will also benefit from ridding your home of hazardous asbestos and updating the visual appeal of the room.
ROI Insight: Home buyers would much rather move into a home that already has popcorn ceilings removed, then having to do it themselves. Patching, sanding, and painting a new ceiling to get a smooth flat surface requires a lot of care, labour, and costs therefore, doing the job yourself will greatly increase your pool of potential buyers.
Attic Bedroom Conversion
If you have the luxury of being able to convert your attic space into an extra bedroom, you should absolutely go through with this renovation ROI project. A sure-fire means to increase the value of your home is to expand the number of available rooms. Extra rooms provide potential buyers options and freedom to design, layout, and plan based on the accessibility of those additional spaces.
ROI Insight: The average cost of an attic to bedroom conversion is $39,200 and the average return is estimated $36,700, so expect to see a 93.5% return on investment.
You should be able to undertake home renovation projects with confidence that they’re going to be completed on-time, in-budget, and to your satisfaction.
Torino Construction is a custom home development and renovation company with over a decade of experience, servicing clients all throughout the GTA and surrounding areas. To learn more about our team and services, or to get a project quote, contact us today!