By: Thom Gallagher

Do The Right Renovations To Your Home

Tags: renovations, payback on home reno ,what are best renos to improve home value, renovation ROI

If your home has become outdated, uncomfortable or too expensive to maintain, you may be thinking of renovating to get all the lifestyle enhancements you’re looking for. But, where do you start?
Of course, getting the right advice is an important step in making the best decision - you can always count on your financial planner, mortgage specialist or Realtor to help. Deciding what to do is equally important to ensure your return on investment is as large as possible. While your specific needs play the greatest role in this decision, it’s important to keep in mind what future buyers may want. Here are a few things to consider:
Make sure you understand why you’re renovating.
Before you go too far, consider why you’re renovating. Is it to make your home more comfortable for you and your family? Or is it to make your home more marketable so it will sell at a higher price? Your approach will be different for either of these though it is possible to achieve both with careful planning.
Choose renovations that deliver the highest possible return.
While most improvements increase the resale value of your home, the extent to which they retain value differs. Fortunately, the renovations with the biggest payback are usually the ones you’re likely to want too. The top three renovations for return on investment include:
RENOVATION                                           RETURN ON INVESTMENT
Kitchen                                                      75% - 100%
Bathroom                                                   75% - 100%
Interior/Exterior painting                              50% - 100%
Renovations offering AVERAGE payback potential include:
Roof shingle replacement                           50% - 80%
Furnace/heating system                             50% - 80%
Basement renovation                                  50% - 75%
Recreation room addition                            50% - 75%
Installing a fireplace                                    50% - 75%
Flooring                                                     50% - 75%
Window/door replacement                          50% - 75%
Building a deck                                          50% - 75%
Central air conditioning                               25% - 75%
(Source: Appraisal Institute of Canada, Renova)
Keep future marketability in mind.
Taking a strategic approach to renovations means thinking about future salability every step of the way. Here are some important considerations:

Making decisions about your biggest financial investment can be scary so it makes sense to discuss your plans with members of your Home Team, including your Realtor. 

Thom Gallagher is a Realtor with extensive home buying and selling experience. For more information on this article or to discuss your home buying or selling plans, call Thom at (416)524-6530 or visit