AVERAGE PAYBACK ON HOME RENOVATIONS

One of many important factors in the process of pricing house for sale, is to determine how the renovations you did to your home will affect the price of your property.

When selling your house, you have to keep in mind that Value is NOT determined by what you have put IN your property, but rather what a Buyer gets OUT of it.

Buyers may not value the improvements as much as you do. One of examples is extended renovations in basement, with expensive tiles, potlights and custom made oak bar. Believe it or not, there are people that do not like to spend their free time in basement, some of them do not even go to basement, unless for laundry, and therefore, the improvements you thought will bring the value of your house up, for that particular buyer, will not.

Most of sellers and buyers prefer pools and are willing to pay extra money for it, BUT there are some people out there that do not like or want the pool. To them, it is an extra hustle and extra expense, to close it.

Just recently, I've showed a property with gorgeous marble tiles....in family room!!! Although, the tiles were gorgeous, the sellers lost quite few potential buyers, due to those tiles!. House was nice overall, but feedback was that tiles will most likely get too cold in winter and therefore, their family time in that room will not be so pleasant. (for you that think about floor heating, this house didn't have it and that would be an additional cost that will be heavy on the seller, but not appreciated back by the buyer.

According the CMHC here is the list with some of the usual home improvements and what is the percentage of the average payback potential on the whole investment.

The best solution is to consult your realtor, Before you do any major renovation and spending extra money for improvements. Maybe there is solution that will bring more value to your property, with less expense.