[Royal LePage] How to Best Boost A Property's Value
by Yvonne von Jena | July 5, 2018
RPS’ sister company, Royal LePage, recently conducted a survey of 766 real estate advisors from across Canada to determine the ROI on various home improvements.
As can be seen in the results above, a kitchen renovation is the clear upgrade of choice with the potential to boost a property’s value by more than 12.5%. Ranking behind this are a finished basement and a new bathroom, which have the potential to increase a property’s value between 2.5% and 12.5%, depending on the investment.
“To financially benefit from a home improvement project, you need to keep potential homebuyers in mind,” said Tom Storey, real estate agent, Royal LePage Signature Realty. “While updating a kitchen should increase your sale price, a pool can actually deter families with young children or those who are looking for less maintenance.”
As a result, the survey showed that a pool or deck is considered the least worthwhile renovation to increase a property’s value with pricing potential limited to a maximum of 2.5% of the value of the home.
For Canadians looking for more general guidance on where to focus their home projects, the vast majority of surveyed experts recommended interior renovations (95.0%) over exterior renovations (5.0%).
“Curb appeal is important but more time is spent indoors at the open house and that is where buyers typically fall in love with a home,” added Mr. Storey. “When renovating with the potential to sell, the most important thing to remember is to use colours and materials that are popular and not too personal.”
The survey showed that prospective sellers are willing to invest less than 2.5% of a property’s value on home renovations prior to listing their home, which represents an investment of up to $15,138 on a property valued at $605,512 – the current median home price in Canada per the Royal LePage House Price Survey, which is powered by RPS.