Increase Your Home's Value: Kitchen and Bathroom Renovations
When deciding on renovations and ways to improve your home’s value in the Real Estate Market, it’s important to look at your kitchen and your bathrooms, especially the master bathroom or main family bathroom. Why are these two rooms so important when it comes to a home’s value?
Well, the kitchen tends to be “the heart of the home” where you’ll be cooking meals, gathering to eat and enjoying time with your family and friends. Meanwhile, the bathroom is one of those few places in the home that you can escape to for a few minutes (or hours…), of peace and quiet while pampering yourself and taking care of your personal hygiene. From a Market Value stance, renovating these two rooms will make them more appealing to homebuyers and possibly increase it’s value against the competition, because they are the rooms of upmost importance in the home. In terms of Appraised value, renovating your kitchen and bathroom(s) proves to be a great Return On Investment and makes a difference in the numbers you’ll see for your property’s value. Here’s what happens when you renovate your kitchen and bathroom.
Minor Renovations to the Kitchen and Their Real Estate Value
In an article from Global News, it is stated that minor renovations to a kitchen is one of those low cost projects that has an enormous return on investment. In their example, they refer to painting of kitchen cabinets as a cost of $500, and have a return value of $5000-10,000 dollars in terms of property value. Kitchen cabinets aren’t the only thing that can be valuable in your kitchen. Changing the lighting fixtures or replacing outdated sink fixtures can also make a difference in the value. These types of changes don’t take up too much time, nor do they involve much of a budget.
Midscale Renovations to the Kitchen and Their Real Estate Value
Having midscale renovations in the kitchen is something that most homeowners will go for. By choosing a handful of kitchen features to renovate, homeowners will be spending a bit of time on their renovation, and a bit more money than a minor renovation, but the return is incredible. For example, painting cabinetry, replacing cabinet hardware and installing soft-close mechanisms, or creating extra shelves and racks will make your kitchen more user friendly. By increasing the usability of your kitchen, you’re improving your home’s livability and it’s value, especially in the eyes of homebuyers.
You can also choose to add in more pantries, change the wall colour, add in new appliances for a midscale renovation with added value.
Full Kitchen Renovation—Does It Add Real Estate Value?
Of all the renovations, this is the most costly type and may not have the same ROI as a minor scale renovation. The only time a full kitchen renovation will likely have a significant ROI is when it’s on a home that is quite outdated, like those from the 1960’s. Evidently, home designs and the functionality of a home has changed since those days, so major renovations might be necessary to update electrical work, plumbing work, and improve the overall layout. The change in property value may not exceed your ROI, but in terms of your home’s Market Value, it will make a difference to potential buyers. Buyers are typically drawn to well-maintained and nicely renovated kitchens that meet their needs. If your kitchen still screams 1960’s with a minimal amount of money put in from a minor renovation, it will not make potential buyers jump towards making an offer on the house (unless they’re into home renovations—then all the power to them). Now that you have a bit of insight on kitchens, let’s move onto bathroom renovations.
Minor Bathroom Renovations and Real Estate Value
Depending on the type of home your have, you’ll either have a master bathroom attached to the master bedroom, or for homes without this, you’ll be sharing a family washroom. In either case, for minor renovations, it is important to think about the smaller details that give the bathroom a modern touch. For example, one great way to add real estate value into your home via the bathroom is by changing the faucets and lighting. Sure, it may seem like a minor detail, but making changes to these features not only updates the look of the home, but makes the bathroom more energy efficient, which saves money in the long term too.
Midscale Bathroom Renovations
If you have a little bit more money, a good idea for a midscale bathroom renovation that will increase your home’s value is to replace the current toilet and sink. Toilets from yesteryears tend to use more water per flush, which can be costly and a huge turn off if you put your house on sale. Sinks also can be outdated, however, not in the same way as toilets. If you haven’t replaced your sink in a while, there can be the signs of wear and tear on it, which makes it less appealing.
Another good idea is to replace the current window coverings (if you have them). Window coverings can make a home look outdated and if they are not well taken care of they can start to show signs of aging or water damage. Window coverings will also determine how much light gets into your bathroom. Remember, the more open and larger you can make a room look regardless of its size, the better it does in the Real Estate Market!
Full Bathroom Renovation—A Fresh Look for Real Estate Value
Now, if it’s in your budget to fully renovate your bathroom, then make sure you’re renovating according to style and functionality. Much like a kitchen, the money you spend on renovating the bathroom may not exceed your ROI, but it will make a difference in the Market Value for your home.
Something to consider is what features you will want to keep in a full bathroom renovation. Older homes tend to have a bathtub with a showerhead, which is an outdated concept for some. Nowadays, homes tend to have a stand-alone shower and a stand-alone bathtub for the reason of functionality—most people don’t take baths and prefer the easiness of a shower. By having both in a bathroom, you give the option to the user, which works well if you have a large enough space. But if you don’t it’s best to keep the duo together, and move the faucet for the bathtub a little bit higher so it’s easier to reach during a shower.
Make sure to also replace your flooring and countertops to materials that are more sleek and modern, such as quartz and porcelain. These will increase the visual appeal of the bathroom. Also, be sure that you have a good ventilation system installed. The one common problem for older bathrooms is the lack of ventilation, which can lead to water damage of the walls and windows, decreasing property value.
How Your Renovation Changes Your Home’s Value In Your Neighbourhood
With both of these renovation types, make sure you are not overly exceeding the value of homes in your neighbourhood. Just because you pour a large amount of money into your home, doesn’t mean that your surrounding neighbours are doing the same.
Keep in mind, your house will not have the same appeal if you are in a low income neighbourhood and have $100 000 worth of renovations as it would in a higher income neighbourhood. Be sure to take a look at comparables in your area and even have a Market Value Appraisal before you start your kitchen and bathroom renovations. This ensures that the changes you are planning give you a good ROI and actually appeals to what buyers are looking for in your neighbourhood.
For more information on the Guelph Real Estate Market, or to get a Market Value Appraisal on your home in Guelph or the Tri-cities, please contact me, Deb Olender. I’ve seen home values increase with renovations, which makes for happy home sellers and homebuyers. I’ll help make sure your renovations are worth the investment of time in money to get your house on sale in Guelph or the surrounding area.