I spoke to an old client that I sold a home to recently and she told me that she wanted to renovate her house, I responded with “I think it’s a great idea! Do you know where to start?”
She asked if I knew a contractor that I could recommend, and I was going to get back to her with the contractor, but before I did so, I needed to get some very important questions answered. The answers to these questions could either cost her a lot of money or save her a lot of money, depending on what the answers were. Before I go any further I think it’s important for everyone to realize that some improvements get a higher rate of return than others and I will give you what yields the highest rate of return according to what the appraisers say.
I’m going to lay it out for you very simply and clearly, as follows:
Kitchens yield 75-100% of what you spend
Bathrooms yield 75-100% of what you spend
Interior painting yields 50-100% of what you spend
Exterior painting yields 50-100% of what you spend
Roof shingle replacement 50-80% of what you spend
Furnace/heating system 50-80% of what you spend
Basement renovation 50-75% of what you spend
Recreation room addition 50-75% of what you spend
Installing a fireplace 50-75% of what you spend
Flooring 50-75% of what you spend
Constructing a garage 50-75% of what you spend
Window/door replacement 50-75% of what you spend
Building a deck 50-75% of what you spend
Central Air Conditioning 25-75% of what you spend…
The above percentages have come directly from the Appraisal Institute of Canada in 2006.
Now keeping in mind the above percentages my fellow home owners must also keep in mind other variables, such as location, location, location!!! Some locations have a lower ceiling than others, before taking down a wall my advise would be to speak directly to a Real Estate Professional, who can give you a guideline as far as what your house can be worth in your neighbourhood, once it has been renovated.
it just takes a phone call or a visit in order to save yourself thousands of dollars, and the lack of a phone call or a visit can cost you thousands of dollars…
I’m not one to tell people what to do, but I am one to tell people to think before they act!
Manjit Virk
Sales Representive with Signature Service GMAC Real Estate
www.manjittorontohomes.com
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