Photo: James Bombales
For Canadian homeowners looking to boost their property value, a kitchen renovation is the best way to gain the most bang for your buck.
According to a new Royal LePage survey, upgrading a kitchen is considered the top home improvement project, as it has the potential to increase a home’s selling price by more than 12.5 per cent.
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The poll surveyed 766 Royal LePage real estate experts across Canada, between June 20 and June 25, 2018.
While a kitchen reno was rated as the top home improvement project, both a finished basement and a new bathroom ranked second. These upgrades have the potential to increase a property’s value between 2.5 per cent and 12.5 per cent, depending on the investment.
“To financially benefit from a home improvement project, you need to keep potential homebuyers in mind,” says Tom Storey, Royal LePage Signature Realty real estate agent, in a statement published today.
“While updating a kitchen should increase your sale price, a pool can actually deter families with young children or those who are looking for less maintenance,” he adds.
According to the survey, adding a pool or deck to a home is considered the least favourable renovation for boosting a home’s selling price. These upgrades have limited pricing potential to a maximum of 2.5 per cent of the value of the home.
When deciding between an interior or exterior upgrade, 95 per cent of survey respondents agreed that indoor renovations are the way to go.
“Curb appeal is important but more time is spent indoors at the open house and that is where buyers typically fall in love with a home,” says Storey.
The survey also revealed that prospective sellers are willing to invest less than 2.5 per cent of a home’s value on renovations prior to listing their home. This represents an investment of up to $15,138 on a median-priced property in Canada valued at $605,512.
As for other popular home renos, a basement apartment and eco-upgrades, including windows and heating, both could boost a home’s selling price by less than 10 per cent. In addition, landscaping has the potential to hike a home’s worth by less than 7.5 per cent.