Home Improvements & the Potential Retrun

Many Canadians are opting to invest in home improvements before selling their home. While most plan to spend a reasonable amount, others plan on going the extra mile but how much of their investment will be recovered when their house sells?

Each year the Appraisal Institute of Canada surveys its members and compiles a list of renovations that provide the best return on investment. Refurbished kitchens and bathrooms top the payback list: 75 per cent to 100 per cent of the investment for these upgrades can be recovered upon resale. But you must remember, if you are renovating in order to sell, the updates must appeal to the majority of potential buyers to ensure the highest possible return.

The Appraisal Institute of Canada states on its website: “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
Below are approximate percentages to keep in mind when considering your updates:

Percentage recovered upon resale
Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%
Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas) 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25%