One of the most common questions we hear when somebody is considering renovating their home is “will we be getting the value back for this renovation?” it’s a fair question to ask because nobody wants to see their money go down the drain. Unfortunately, by doing that you are overlooking the most important questions you should ask, which is;
“What value would I be getting out of of this renovation?”
Let’s say you would like to add a master bathroom and you’re wondering “Will we be getting value back for this renovation when we sell?” Well, first you want to look at how long you’re going to be living in the home. If you’re planning on enjoying your house for another 10 years, then you’re going to get a lot of value out of that renovation because you are using that washroom every single day. Quite frankly, I wouldn’t be factoring resale value into the equation at all.
Take some time to ask yourself; How much value would I get out of doing this renovation and enjoying it while I’m living in the home?
You can apply this to some other common items that sellers wonder if they will be getting value back for renovations. You may be wondering about renovating your kitchen and putting in nice appliances. Well, if you cook everyday I would argue that having that nice stove to cook on would be a pretty big benefit for you! Likewise, having granite countertops for the next 10 years might be something you’ll enjoy for the longevity of the time that you live in the house.
Below are the top items you shouldn’t worry about getting the value back for in a renovation.
- Hardwood flooring
- Kitchen renovation
- Washroom renovation
- Washroom addition
- Painting your house
- Minor landscaping
- Upgrading any cosmetic items like light fixtures
You’re getting the benefit and enjoyment from the daily use of these items and that should be worth a lot to you. You are still going to get future value out of minor renovations, it just might not be 100% of what you invested but it would likely be no less than 75% of what you are putting in. So, would you spend $2,500 to enjoy the use of an en-suite bathroom for the next ten years? Of course! Enjoy your life and the house you live in for every second you are there.
If you aren’t planning on living in your house for at least the next 5 years then there are renovations you would look at in more detail. Those items would be something like adding a pool or putting or doing a full basement renovation. if you are considering any one of those items then I would definitely ask the question “will we be getting the value back for this renovation?” and to do that you would look at the home sales in your area to see what other properties have actually done similar renovations and establish whether or not there would be future value in that.
I hope you’ve enjoyed this article. If you would like more information or are considering a renovation and want to know if it would be worth it for you, reach out to us and we’ll move you in the right direction.