Q. We are planning to make major home improvements. I am worried
about getting our investment back when we decide to sell. How do we
know if we are spending wisely?
A. When remodelling, you must weigh the cost of the remodel versus the value
of the finished product. When I say “value,” I am not only talking about resale
value, but I am talking about the value of the remodel to you personally. Some
important questions to ask are how long you will be staying in your home and
what benefits will the remodelling project bring to your daily life.
Regarding resale value, your remodelling project needs to be assessed based
on your neighbourhood. The best home improvements are cosmetic
improvements. Minor updates to the kitchen and bathrooms, or a new roof are
always valuable. Aesthetic additions such as new carpeting or paint are another
type of remodelling project that returns almost 100 percent of their cost to the
value of your home.
For larger projects, the average return within one year after the remodel
varies. Major kitchen remodelling gives an average return of 87 percent, a
family room addition at 84 percent, a master suite averages 82 percent, and
window replacement 68 percent. As you can see from these examples, your
remodelling project will always add some degree of value to your home.
When remodelling, it is important to remember that you will be selling your
home someday and you need to make wise remodelling decisions. You must
weigh the up-front cost of the project versus the usefulness to you and added
value to your home. If you are thinking of selling or buying soon, and require
competent and caring representation, please call me at 519-824-9050.