Maximizing Your Investment: The Renovation Payoff
Whether you're selling soon, buying a fixer-upper, or simply aiming to
transform your current house into a long-term dream home, renovations are a
powerful tool.
In a market defined by tight inventory, buyers are increasingly seeking
move-in ready homes. For sellers, the right updates can mean a faster sale and
a higher price. For buyers, tackling a renovation can be the perfect way to get
into a coveted neighbourhood at a more affordable entry point.
We surveyed RE/MAX Canada brokers and agents coast-to-coast to reveal
which renovations truly offer the best Return on Investment (ROI).
Here’s what they say is "money in the bank":
🔝 The Top 5 Value-Adding Renovations
These projects were overwhelmingly identified as the best investments
for resale value:
1. Kitchen Renovations (93.5% ROI)
The kitchen is the heart of the home, and buyers do not want the hassle
of updating it themselves.
·
What Pays Off: New or updated
cabinets, countertops, and appliances.
·
The Buyer Logic: The scale and
temporary inconvenience of a kitchen reno make the "move-in ready"
factor significant.
2. Bathroom Updates (61.3% ROI)
Like kitchens, bathrooms are expensive, time-consuming, and inconvenient
to renovate. Buyers are willing to pay a premium for a finished space.
·
What Pays Off: New fixtures, modern
tiling, and refreshed vanities.
3. Fresh Paint (58% ROI)
The simplest and cheapest investment that instantly pays off.
·
What Pays Off: Light, neutral paint
colours are highly recommended by home stagers. They make a home appear bigger,
brighter, and cleaner.
4. New Floors (45.2% ROI)
Flooring dramatically impacts a home's perceived age and cleanliness.
·
What Pays Off: Hardwood or tile are
heavily preferred over wall-to-wall carpets, which trap stains and odours. Pro
Tip: Tearing up old carpet might reveal salvageable hardwood underneath!
5. Finished Basement (16.1% ROI)
Any project that adds usable, liveable square footage is always in
demand.
·
What Pays Off: Converting the lower
level into a family room, home office, extra bedroom, or bathroom gives your
listing a significant boost at the offer table.
🛠️ Other High-Impact
Updates
These renovations may be more specific to your home's needs but still
offer solid ROI:
Outdoor & Landscaping (12.9% ROI): Post-pandemic,
outdoor amenities like large yards, decks, patios, and even pools/hot tubs are
appealing. This can be a high-return, low-investment upgrade depending on the
scope.
New Roof (12.9% ROI): While not "sexy," astute buyers appreciate
that a new roof avoids tens of thousands of dollars in future maintenance
costs.
Open-Concept Floor Plan (9.7% ROI): This is a large,
expensive project, but removing wasteful walls and halls instantly modernizes
older homes, making the space live much larger.
Replace Windows (6.5% ROI): New windows net higher offers by appealing to buyers
focused on energy efficiency and avoiding major replacement costs down the
road. They also provide an understated aesthetic refresh.
Ready to Renovate Without Reservations?
Thoughtful renovations are the key to making the most of your real
estate investment. To ensure you're prioritizing the right projects for your
local market and specific goals, consult a professional.
Ready to find out which renovations will pay off the most in your
neighbourhood?
Click here to connect with a local real estate expert today!
