As it turns out, renovations aren’t always the answer. These costs and savings are based on US$, but the added value still works for us in Canada.
A renovation project should not only add immediate value to your home, but also ensure that your return on investment (ROI) is attainable (should you decide to eventually sell). If you’re looking for a high-impact project to tackle this year, be sure to check the 2016 Cost vs. Value Report before breaking ground. To ensure that your shoo-in project won’t leave your budget hurting, here are some of the best (and worst) home investments on this year’s list:
Some of the Best:
#1 Adding Attic Insulation – 116.9%
The addition of attic insulation is the #1 improvement recommended by the 2016 Cost vs. Value Report. With an estimated cost of around $33 a bag, installing fiberglass insulation will increase your home’s value by $1,450. Additional insulation also aids in the utility efficiency of your home — cutting down on energy costs.
#2 Using Stone Veneers – 92.9%
Your home’s aesthetics are very important when considering the overall value of your property. Installing manufactured stone veneers (which cost an estimated $7,500) can potentially increase your home’s value by $7,000. If you have any stone left over, consider using the extras to accent your fireplace or bathtub walls.
#3 Replacing a Door – 91.5% (garage), 91.1% (entry door)
Replacing your current garage door with a steel alternative will offer peace of mind and an additional bump in the overall value of your home. If you decide to upgrade your garage door, make sure to add new steel tracks and a motorized opener to avoid jams. Replacing your home’s entry doors with a steel alternative will cost between $500 and $1,230 per door. But, expect a high ROI should you decide to sell.
#4 Minor Kitchen Remodel – 83.1%
While a complete kitchen overhaul will only retain 64.9% of your investment, there are a few minor updates that will increase your kitchen’s resale value (without a hefty price tag). Replacing cabinet hardware, installing energy-efficient appliances and upgrading your sink are simple, DIY-able ways to get more out of what you put into your kitchen.
Some of the Worst:
#1 Adding a Bathroom – 56.2%
Despite being one of the most popular rooms in your home, a bathroom addition isn’t always the best investment. A midrange bathroom add-on will cost around $40,000 (expect that price to double for upscale additions). Regardless of your total investment, bathroom additions only reclaim (on average) 56% of their original budget.
#2 Adding a Backup Generator – 59.4%
While having power might seem invaluable during a blackout, backup generators usually cost around $3,100 to install. On average, only 60% of your total expense will be added to your home’s resale price.
#3 Installing New Decking – 64.4% (composite), 75% (wood)
Although the idea of evenings outdoors might be enticing, deck additions are not a make-or-break feature for most buyers. Expect composite decking to return about 65% of its installation cost, while wood decking recoups an average of 75% of its fitting expense.
As it turns out, renovations aren’t always the answer. Unless a gigantic investment is required to bring your home up to code, it pays to think twice before dumping a chunk of cash into an improvement.