The Best Renovations That Pay Off on Resale

If you’re a homebuyer, owner or seller, you want to maximize your investment, and one way to do that is with home renovations that add value.  Your ROI in resale, whether you’re renovating for near-term resale or long-term liveability, will depend on a number of factors, such as local housing market conditions, your level of investment, and trends as dictated by demand. With that said, there are some home renovations that people often consider “money in the bank.”

For home sellers, the right renovations may help find a buyer faster, and one who’s potentially willing to offer a higher price. On the buying side, renovating a fixer-upper home is one way homebuyers can get into their neighbourhood of choice at a lower price. Meanwhile, for homeowners who aren’t quite sold on moving, renovations have become a way to get the home they want and need, without having to move before they’re ready. Post-pandemic, as Canadians grappled with a severe housing inventory shortage, renovations quickly took centre stage.

So, what reno trends have Canadians been digging into, and which ones are worth the effort? We surveyed REMAX Canada brokers and agents from coast to coast, for their professional opinions on the top home renovations to consider.* Here’s what they had to say.

93.5% of REMAX brokers said kitchen renovations give the best ROI, including new or updated cabinets, countertops and appliances. This can be attributed to the scale, cost and the general inconvenience (albeit a temporary one) of a kitchen renovation. Yes, renovating the kitchen yourself once you take possession of the home will be cheaper, however many homebuyers simply don’t want to put themselves through it – especially if they just completed a kitchen renovation on the home they are selling. The “move-in ready” factor is significant.

61.3% of REMAX brokers identified bathroom renovations as a great high-return renovation. By the same logic as the kitchen renovation, homebuyers who want move-in ready homes with all the bells and whistles generally don’t want to take on expensive, time-consuming and inconvenient renovations, such as bathroom.

58% of REMAX brokers said a fresh coat of paint is the simplest and cheapest investment, and it pays off on the resale market. Aside from giving the home an instant refresh, home stagers also recommend light and neutral paint colours to make a home appear bigger, brighter and cleaner.

45.2% of REMAX brokers said new flooring is a popular upgrade among homebuyers. Homebuyers largely prefer hardwood or tile over wall-to-wall carpets, which tend to trap stains and odours, and can really show a home’s age. This is a must, and if the seller is lucky, tearing up that old carpet could even reveal a hardwood floor underneath that just needs some TLC to bring it to its former glory.

16.1% of REMAX brokers said finished basements are a great selling feature on the resale market. In fact, any renovations that add liveable square footage to a home are always in demand. A lower-level family room, home office, an extra bedroom or bathroom in the basement can all give your listing a significant boost at the offer table.

12.9% of REMAX brokers said outdoor projects can provide good ROI. As a result of the pandemic, people have been spending more time at home and thus, large years, pools and hot tubs, decks and patios, and landscaping are all appealing on the resale market. Depending on the scope of the project, this could be one of those low-investment, high-return upgrades that pay off on resale.

12.9% of REMAX brokers said roofing was a good option to invest some renovation dollars before listing a home for sale. New roof tied in sixth place with outdoor projects and landscaping.

9.7% of REMAX brokers said redesigning a home with an open-concept floor plan can pay off. This isn’t a small or inexpensive project by any means, but removing wasteful walls and halls can instantly modernize an older home and make it live larger than its actual square footage would otherwise allow.

6.5% of REMAX brokers said new windows net higher offers on the resale market. While this isn’t exactly the sexiest of renovations, astute buyers will appreciate the tens of thousands of dollars that new windows will cost, so having these replaced before listing can benefit both buyer and seller. Furthermore, new windows can give your home an understated refresh, inside and out.

If you’re planning to buy or sell, or want to transform your new place into your forever home, some thoughtful renovations can help you make the most of your investment. A professional real estate agent can provide advice and tips based on real market conditions, so you can dig into your renovations without reservations.

Ready to take the next step in your real estate journey?