Maximize Your Investment: Top Renovations That Boost Home Value
Homeowners are often curious about how renovations can impact the value of their property. Whether you’re planning to sell your home soon or simply want to invest in meaningful upgrades, strategic renovations can offer significant returns. However, determining the exact financial payoff can be tricky due to ever-changing market variables. Below, we’ll explore some key insights to help guide your decisions.
Best Renovations for Increasing Home Value
If you’re looking to maximize the return on your renovation investment, prioritize kitchens and bathrooms. These are the spaces that buyers tend to scrutinize most when assessing a home’s value.
Cosmetic updates are often more appealing to buyers than structural or mechanical improvements. However, this largely depends on the condition of the home. For instance, if your home has outdated wiring or plumbing, those upgrades may need to take precedence before cosmetic changes.
Adding a Bathroom: Is It Worth It?
One of the most impactful upgrades a homeowner can make is adding a bathroom—especially when going from one to two bathrooms. While it’s difficult to provide precise dollar amounts or percentages due to market fluctuations, adding a bathroom where one didn’t previously exist will almost always increase a home’s value.
If adding a completely new bathroom isn’t feasible, upgrading an existing half-bath by incorporating a shower or tub is another valuable improvement. While there are no hard guarantees, a general rule of thumb is that you may recoup around half of the renovation cost, depending on market conditions at the time of sale.
High-Value Bathroom Features
When adding or upgrading a bathroom, focusing on luxury features can yield the greatest value. Buyers are increasingly drawn to bathrooms that feel spa-like and functional. Key features to consider include:
Walk-in showers: A sleek and modern walk-in shower can elevate the overall appeal of the space.
Separate tub and shower: Providing both options is viewed as a luxury, particularly in larger homes.
High-quality materials: Opt for durable, stylish finishes such as quartz countertops and porcelain tiles.
Whole Room and Floor Renovations
Beyond kitchens and bathrooms, whole-room or whole-floor renovations can significantly increase your home’s appeal and value. Some key considerations include:
Main floor renovations: Prioritize updating the main floor since this is typically where homeowners and guests spend the most time.
Basement finishing: If your main floor is already in good condition, a finished basement can add substantial value by creating additional living space.
Addition vs. Interior Overhaul
If you’re debating between adding on to your home or renovating the existing interior, the answer depends on your specific situation. Key factors to consider include:
Square footage: If your current home feels too small, an addition might make sense—but be mindful of how it affects your outdoor space.
Functionality: Sometimes, reconfiguring the existing layout can improve the functionality and flow of the home without the need for an expensive addition.
Neighbourhood considerations: What makes sense for your home can also depend on the characteristics of your neighbourhood. An addition might be more worthwhile in areas where larger homes are the norm.
Build New or Renovate?
The decision between building a new home and renovating an existing one hinges on your priorities and preferences.
Neighbourhood preferences: Consider whether the neighbourhood offers the lifestyle, schools, and amenities you want.
Structural integrity: If the existing home has major structural issues, building new might be more practical.
Character and charm: Many older homes have unique architectural details that are difficult to replicate in new builds, making renovating a better option for those who value character.
Insights on Winnipeg Neighbourhoods
In Winnipeg, areas like Fort Garry, River Heights, Wolseley, Tuxedo, Lindenwoods, Linden Ridge, and Whyte Ridge are known for their strong sense of community and desirable amenities, such as good schools, parks, and walking paths. These neighbourhoods typically see low turnover, with many residents staying for years.
Homeowners in these areas often opt to renovate in order to stay in the neighbourhood. Older homes in these areas often undergo renovations to update kitchens, bathrooms, lighting, flooring, and windows. Homeowners recognize the importance of modernizing these key spaces while maintaining the charm and character that make these neighbourhoods so appealing. So, if you’re in one of these neighbourhoods, consider renovating to increase your standard of living, property value, and location longevity.
Final Thoughts
While market conditions and individual circumstances will always play a role in determining the value of home renovations, focusing on kitchens, bathrooms, and functional improvements is generally a safe bet. Whether you choose to add a bathroom, renovate an existing space, or undertake a whole-home transformation, thoughtful planning and attention to detail will ensure your investment enhances both your living experience and your property value.
Thanks to The Bilodeau Team for providing valuable market insights!