Whether you’re considering a relocation or simply looking to enhance your overall home, renovations can be a significant undertaking. It’s crucial to determine which improvements will offer the best return on investment, ensuring that you receive an improved price when it comes to buying or selling your home in Canada.
According to the Canadian Statistics Agency, Canadians spent nearly $6.3 billion exclusively on residential renovations in March, up from around $5.8 billion in the previous year.
A report by the Appraisal Institute of Canada highlights that certain projects provide not only a financial return but also significant enjoyment value. Finishing a basement, adding a garage, constructing sunrooms, decks, or landscaping the yard can greatly enhance your home’s appeal. Here are the top renovation ideas in Canada that will increase the value of your home when buying or selling.
- Make an Addition Consider adding extra space to your home to improve its value and square footage. Choose the right materials and details to enhance the value and personality of your property. Any physical expansion, such as adding a new bedroom or extending the living room, can have a substantial impact.
- Remodel the Kitchen The kitchen is the heart of the home, and functionality is key. Remodeling your kitchen can be an exciting and fulfilling project, especially when tailored to your specific needs and aspirations. Upgrading appliances and plumbing fixtures in the kitchen and bathrooms may seem insignificant, but they add significant value when buying or selling a home in Canada.
- Renovate the Bathroom A newly renovated bathroom is a major selling point for any property. Opt for sleek surfaces that create a gleaming space that is easy to clean. According to a survey by the National Association of the Remodeling Industry, homeowners can recoup up to 57% of the cost of a bathroom makeover when selling their home.
- Improve Your Home’s HVAC System Heating, ventilation, and air conditioning (HVAC) systems are vital for maintaining a comfortable home environment. Ensuring these systems are in good condition is essential. Realtors estimate that homeowners can recoup 85% of the cost of an HVAC system when selling their property.
- Expand Your Outdoor Living Area Having an outdoor space for gatherings is highly desirable. Increasing the value of your property with an outdoor living area can provide a relaxing venue for get-togethers. Regardless of your budget, there are numerous ways to upgrade your backyard, porch, or patio. Consider adding a screened-in balcony or back patio with a cooking area, including a grill and a small fridge, to create an excellent additional entertaining space.
- Enhance Accessibility When renovating your home, consider incorporating universal design principles to make it accessible to people of all ages, sizes, and physical abilities. Understanding the needs, preferences, and tastes of all potential users during the design phase can make your home more welcoming to guests, marketable to a wider audience, and adaptable for aging in place.
- Modernize Your Lighting Fixtures Updating lighting fixtures is a cost-effective home improvement that can make a significant difference. Well-placed pools of natural light can make your home inviting and visually appealing. When choosing light fixtures, consider both design and functionality.
When considering renovations, weigh the pros and cons of potential changes and improvements based on your specific goals. Remember that the average home remodeling project costs around $15,000, so it’s essential to be comfortable with your investment.
While adding an income-producing suite can provide the highest financial return, the kitchen is the most valuable modification in terms of resale value. Bathrooms and kitchens are top priorities for homebuyers, and kitchens have become social hubs. Modern kitchens and open floor plans enhance the value of your home.
In conclusion, renovating your home can be an excellent way to increase its market value in Canada. Remodeling the bathroom and kitchen, expanding outdoor living spaces, replacing doors and windows, and transforming or enclosing the basement are among the top renovations that can yield a strong return on investment. Keep in mind that construction costs may vary depending on factors such as location and the scope of work required when buying or selling a home in Canada.