The desire to renovate is bothersome and, as long as you invest considerable sums, you would like to know if the changes you are considering would increase the value of your property. A little review of the highest paying investments and those who, even if they please you, will not bring much into your pockets.
In renovation, keep in mind that “you will never get 100% of your investment,” says Carl De Rico, chartered appraiser at De Rico, Hurtubise and Associates. “Except perhaps for the addition of a home,” he adds in the same breath. It is a very popular item. People are willing to pay for it. “
Mr. De Rico cites statistics that quantify the percentage of investment a homeowner can expect to recover from the sale of his home after various renovations. Some expenses pay more than others. Specialists agree that the main “rooms” that must be tackled to make our home worthwhile are the roof, the windows, the kitchen and the bathroom – ideally with a ceramic shower. “People are willing to pay more for a property that has been professionally renovated,” says Ginette Michaud, director of the real estate agency La Capitale Select, in Lebourgneuf.
“For roofing and windows, it’s essential maintenance. When they are to be redone, it is very important not to neglect them, adds Carl De Rico. Quality windows are an investment that pays a lot, he says. We can recover 75% of the cost. This means that if you paid $ 10,000, the value of the house is increased by $ 7,500. “And it’s a safe bet that the property would find takers faster than another whose windows are tired. The choice of materials does not really matter, he adds. Wood, PVC or aluminium, the important thing is that they are recent and of quality.
As for the roof, if you pay $ 60,000 for a permanent cladding, do not expect to find all those dollars at the time of resale, advises Mr. De Rico. “Yes, it keeps the stamp. Yes, it’s beautiful, but are people willing to pay for it? Not in all cases. “If we redo the roof, we can take the opportunity to choose a range of shingles design very popular on new homes, he recommends.
In renovation, says Carl De Rico, the golden rule is to always consider the basic value of your property. Because we do not expect a bungalow worth $ 150,000 to have the same attributes as a house over $ 300,000. So, when renovating, to make sure you get the most out of a possible sale, but also to win the favour of buyers, you must know how to adjust expenses.
The example of the garage illustrates this point of view. For a house of $ 300,000, it represents an added value. Especially if most homes around have one. But when you have a $ 75,000 home, investing $ 40,000 on an adjacent building does not necessarily pay. “Rather than paying $ 40,000 for a garage, buyers will prefer to have a better home,” says De Rico.
Same reasoning for landscaping. If you really want a long-term paying investment, you do not have to spend too much money. Unless the opulence of the house requires it. At $ 300,000 or $ 400,000, we can hope, on resale, to monetize the paving stone entrance which cost several thousand dollars. But we will not get the same price if the house is worth $ 150,000, recalls the evaluator. According to Ginette Michaud, exterior landscaping is not one of the main incentives for selling a home. Especially for those who sell in the winter!
The kitchen and bathroom are the two rooms that are most scrutinized by buyers. Taking special care can only be beneficial. Sub spending to retype these two parts, 60 to 75% should come back to you, according to the calculations of Carl De Rico. In terms of basement development, we can expect to recover half of the investment.
On the floor, we will prefer the hardwood by far. Ceramic also seduces buyers. But the carpet is less and less popular. Just like the tarpaulin or parquetry. For floating wood, it is best to choose good quality. “But as much as to invest, suggests Mr. De Rico, you might as well opt for hardwood.”
Zero value for the pool
Few buyers are willing to increase their wager on a house so they can wade into the backyard.
“With an in-ground pool, we can expect to recover at most 50% of our investment in the first year, but it depreciates very, very quickly,” said Carl De Rico, chartered appraiser at De Rico, Hurtubise and Associates. “As for the above-ground pool, we do not add value for that. Lenders do not want that to be considered for financing. And with the winters we know and the breaks that happen … There are people who pay for it, but we do not consider it. “
Ginette Michaud, director of the Capitale Sélect, agrees. “Some people do not want a pool and will just take it down as soon as they move in. Most are not willing to pay more for a pool. “
Some works are more “paid” than others. Here is the average recovery rate for some of the most common residential renovations:
– Cuisine: 68% to 73%
– Bathroom: 64% to 71%
– Interior paint: 62% to 66%
– Exterior painting: 62%
– Family room on the ground floor: 40% to 56%
– Basement finished: 50% to 52%
Remax Alliance Inc.