- Royal LePage professionals say that on average, bathroom renovations can increase the value of a home by 16%
- Finished Basements and Basement Apartments Have the Potential to Increase Home Value by 15%, Survey Results Show
- Outdoor entertaining spaces and landscaping have the potential to increase a property’s value by an average of 10%, according to respondents
- For Canadians looking for general advice on where to invest in their home improvement projects, 87% of experts surveyed recommend interior renovations
TORONTO, May 5, 2022 /CNW/ – According to a recent Royal LePage survey of 340 real estate professionals across the country, a kitchen remodel is the most worthwhile home improvement project. Respondents say that on average, a kitchen renovation has the potential to increase the value of a property by 20%. A bathroom renovation ranked second, with the potential to increase the value of a home by an average of 16%.
“Kitchen renovations typically provide the best return on investment because this space is used the most frequently and is seen as the gathering place and heart of the home,” said mike hedle, Broker and Team Leader, Royal LePage State Realty. “When a potential buyer visits a home for the first time, the only thing that stands out – for better or for worse – is the look and feel of the kitchen. They may not remember the size of the rooms or the color of the walls, but they will remember the kitchen.”
Heddle noted that investing in improvements to your home can pay off whether or not you plan to sell in the short term.
“During the pandemic, many Canadian homeowners have used their accumulated savings to make improvements to their homes. Whether it’s a new kitchen or upgrading your outdoor space, home renovations are a worthwhile investment. , because you and your family will benefit from the new space, in addition to the potential increase in the overall value of the property.”
Outdoor projects such as an outdoor entertainment area or landscaping have the potential to increase a property’s value by an average of 10%.
The survey showed that basement renovations ranked third (finished basement) and fourth (basement apartment). Royal LePage experts say that finished basements and basement apartments have the potential to increase the value of a home by an average of 15%.
“In today’s market, investing in a basement apartment can dramatically increase the value of a home, largely because it can help offset mortgage costs with a rental unit, or attract newcomers to the looking for multi-generational homes,” Heddle said. “Since the onset of the pandemic, we’ve also noticed that older homeowners are looking for multi-generational opportunities to live under one roof. Having an additional fully habitable unit allows for more privacy for these families.”
According to survey respondents, replacing windows can increase home value by 13%, and interior painting can increase home value by 12%, on average.
“While updating the kitchen or a bathroom can increase your selling price more significantly, minor improvements such as interior painting can be a simple and cost-effective option to increase the value of the house. .”
For Canadians looking for general advice on where to invest in their home improvement projects, the vast majority of experts surveyed (87%) recommend interior renovations.
The majority of surveyed experts (59%) say potential sellers are less likely to renovate their homes before listing since the start of the pandemic, due to sustained market conditions for sellers. Additionally, 57% say sellers may choose not to renovate, due to recent increases in the cost of building materials and labor.
“Turnkey properties with modern finishes spend less time on the market,” Heddle said. “However, the time and logistics of delivering goods and materials can be a deterrent to many sellers, especially with the rising costs associated with renovation projects.”
Investing in a swimming pool is considered the least interesting renovation to increase the value of a property. According to the survey, a swimming pool can only increase the value of a home by an average of six percent.
Royal LePage Survey: Home Renovation ROI – Data Table: rlp.ca/chart-home-renovation-ROI
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About the Home Renovation ROI Survey
A national online survey of 340 Royal LePage brokers and sales representatives in real estate markets across Canada was conducted between February 17, 2022and March 14, 2022. Each respondent was asked to complete an online survey consisting of seven questions about the value of popular home improvement projects.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the nation’s leading provider of services to real estate brokers, with a network of over 19,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a company of Bridgemarq Real Estate Services Inc., a company listed on the Toronto Stock Exchange under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
SOURCE Royal LePage Real Estate Services
For further information: Meghan Edwards, North Strategic on behalf of Royal LePage, [email protected](416) 300-5720