Home Renovations and Resale Values
Have you ever wondered what the pay back might be for the money you invest in those renovations?
The Appraisal Institute of Canada has a handy calculator on their website to assist people in estimating this pay back range on 20 of the most popular home renovation projects. While it is a guideline only and does not reflect differences in various real estate markets, it will give most people a good sense of what is really worthwhile doing in terms of investment. You can visit the website here.
I would have to add that renovations have a pay back in more subtle ways as well that are harder to quantify. Some renovations may not easily have a dollar figure attached however, they will impact the salability of the house. For example, putting in new carpet is said to have a return value of 50-75% of the original cost. If however you’ve put in a bold colour that only you and three other people might love, that could drop considerably. On the other hand, replacing that purple carpet with hardwood flooring might yield a return of greater than 100% and affect how quickly the house will sell.