One of many important factors in the process of pricing a house for sale, is to determine how the renovations you did to your home will affect the price of your property.
When selling your home, you have to keep in mind that Value is NOT determined by what you have put IN your property but rather what a Buyer gets OUT of it. Buyers may not value the improvements as much as you do. One of examples is extended renovations in basement, with expensive tiles, pot lights and custom made oak bar. Believe it or not, there are people that do not like to spend their free time in basement, some of them do not even go to basement, unless for laundry, and therefore, the improvements you thought will bring the value of your house up, for that particular buyer, will not.
According the CMHC here is the list with some of the usual home improvements and what is the percentage of the average payback potential on the whole investment.
AVERAGE PAYBACK POTENTIAL ON HOME RENOVATIONS
Improvement | % |
Finished Basement | 49 |
Central Air Conditioning | 52 |
Bathroom | 71 |
New Windows | 48 |
Landscaping | 35 |
Interior Painting | 74 |
Energy Efficient Features | 33 |
New Heating System | 50 |
Kitchen | 78 |
Exterior Painting | 63 |
The best solution is to consult your realtor Before you do any major renovation and spending extra money for improvements. Maybe there is solution that will bring more value to your property and with less expense.
