There's no denying that home renovations can increase the value of your home. According to the Canadian Home Renovation Survey from the Appraisal Institute of Canada, a kitchen or bathroom renovation can be expected to nearly double the amount you invest. $10,000 spent will increase your home's value by $17,500 - $20,000. To look at another example, for every $1.00 you spend to paint, inside or out, expect to get $1.50 - $2.00 back.
The survey listed the top 20 most-frequently performed renovation projects, along with the expected return each. (See table.) It's clear that renovating adds value.
However, the survey warns that expected returns are dependent on many factors such as property location and quality of workmanship. Ill-conceived or poorly built renovations can actually decrease a home's value.
The Value of Housing Characteristics report by the National Assocation of Realtors in the USA, shows that an above-ground swimming pool or basement laundry fall into this category of "features that can decrease value".
If you're looking to increase the value of your home via renovation before selling, experts suggest following a few common-sense guidelines.
Jul 6 2005