Before undertaking renovations, did you consider the potential recoverable value? You renovate first and foremost for yourself, but perhaps also to resell, now or in the near future.
When you renovate, especially if you are planning to recoup part of your costs when you sell, try not to go overboard. Why? So your house doesn’t stick out like a sore thumb from the rest of the neighbourhood.
When your renovations are completed, the value of your property should not be more than 20% higher than the average for your neighbourhood. If you exceed this amount, don’t expect to recover all your costs when you sell.
You probably know that renovations don’t all have the same impact on the resale value of your home. Some renovations are a little more striking than others.
|Potential Return on Investment for Renovations1|
|Renovation||Approximate Recovery Rate of Sums Spent|
|Kitchen||75% to 100%|
|Bathroom||75% to 100%|
|Interior paint||50% to 100%|
|Heating system replacement||50% to 80%|
|Re-roofing||50% to 80%|
|New doors and windows||50% to 75%|
|Basement refinishing||50% to 75%|
|Family room addition||50% to 75%|
|Hardwood flooring||50% to 75%|
|Fireplace (wood or gas)||50% to 75%|
|Deck||50% to 75%|
|New garage||50% to 75%|
|Central air conditioning||25% to 75%|
|Landscaping||25% to 50%|
|Interlocking paving||25% to 50%|
|Wooden fence||25% to 50%|
|Swimming pool||10% to 40%|
|Skylight||0% to 25%|