Kitchen Renovation and how it affects the value of your home
Simplicity is key when it comes to kitchen renovation. It can increase the value of your home significantly. Remodelling Magazine’s 2018 Cost vs. Value Report pointed out that major kitchen renovation could account for 59% return on investment, whereas minor remodelling jobs could account for 81.1%.
A “major kitchen remodel” means new cabinets, a high-end sink and faucets, all-new appliances, plus new floors, walls, backslashes, and ceiling. This type of remodelling is really expensive and not always recommended. A minor remodel is concerned mainly with the cosmetic work that is usually cheap and fast. It includes new cabinet fronts, laminate countertops, and new paint.
Sometimes this remodelling type includes changing large appliances. Minor remodelling cost way less than major remodelling and the return is significant. It is always recommended to consider it before putting aside lots of budget for kitchen. It you are considering selling your house, it is not recommended to go through the major remodel route. Instead, consider minor cosmetic touches that could add lots of value and save you lots of unnecessary expenses. A fresh coat of paint and a new floor could do it for you for that purpose. On the other hand, if you are planning to live in the house after remodelling, you might want to consider the major changes route. You might be able to recoup 50-80% of the cost when selling, and you can enjoy these changes for couple of years before you sell. The return of kitchen renovation might vary from area to area. Realtors in some cities point out that major kitchen renovations actually provide significant positive returns on investment. You can always consult with your realtor to get their take on the subject. The average payback for those who do major renovation is 56 percent of the cost of the remodel, but for those who do minor touch ups like garage doors or windows, the payback is a much higher 75 percent.
Tips for Home Renovations that you should consider:
1. Pick a strategy that wins
Considering a kitchen renovation, bathroom renovation or basement transformations require a strategy. You should highlight your priorities beforehand and pick the route that makes a real difference and add value to your home on the long run. The Appraisal Institute of Canada says that the highest return on investments is kitchen renovations, bathroom renovations and interior and exterior painting. Storage space can add significant value to your home, countertops, curtains, cabinet hardware and flooring are also on the list of profitable projects.
2 Choose the most important work first
Although the main purpose of remodelling is increasing property values and enjoying the new looks, there are some other aspect you should consider when remodelling which include safety. Always take into consideration these factors before attempting anything else and that includes roofing, windows and doors.
If anything in the house seems to cause a hazardous situation, potential buyers won’t really care how fancy other renovations are. Safety comes first and any plan must start also with necessary upgrades before considering anything else. The cost of windows or a roof could return up to 75% of investment.
Another profitable investment is energy efficiency, which can enhance the comfort and lower the electricity bill. Energy-efficient renovations are interesting because the government often offer financial assistance and rebates to lower the initial costs. Mister Contractor Inc. offer great deals on Attic insulations which account for huge savings on electricity bills and energy consumption.
3. Always account for the renovations recoverable values
Before heading to the hardware store to buy materials, calculate all the costs and the anticipated value of the work, in case you want to sell your property.
Recoverable value of a bathroom
Similar to kitchen, the bathroom plays a great role in buyers’ decisions. The maximum cost of a bathroom renovation is estimated at 5%.This type of renovation could generate a recoverable value of about 85%. A new paint on the walls and some cosmetic changes could potentially add tremendous values at a low cost.
4. Get the right team
It is always advised to hire a qualified and reputable contractor.it becomes really expensive if you have to redo the job and you might end up spending way more than the starting price.
Spend some time when choosing the company what will do the renovations. They must have the necessary permits and insurance. Mister Contractor Inc. pride itself as one of most prominent renovation companies in the GTA. We value customer’s experience and quality word more than anything and our team will go above and beyond to make your dream home reality.
5. Avoid changes that are too customized
Being original in renovation is not always recommended. Basically you want to appeal to the majority of potential buyers. Using noble materials such as imitation wood or granite can make a difference. The color of your exterior should not clash with those of the neighbourhood.
6. Ignore non-profitable renovations
Some renovations have little to no value to most buyers. This includes pools (in-ground or above-ground), fencing, paved driveways or skylights. Although it might seem pleasing to you, they do not weigh much when it comes to selling.
7. Keep your proof of payment in a safe place
Keep all your receipts (materials, fees, etc.) in a safe place with the date, cost and quality of the work. This help when negotiating the sale of your property.
8. Maintain your property over the years
Ensuring consistent maintenance of your property is probably the wisest tip that you should never overlook.
9. Profit from your renovations
It is wise to take advantage of your renovation for a few years before selling. Five years is a good crossroads between the renovation date and the date the property is sold. This will give you some time to enjoy the renovations before selling. Before doing any renovation, take the time to plan well, at the same time, consider the value that this will add to your property. When you sell, you will enjoy benefits of your decisions.